By Kylie Madry
MEXICO CITY (Reuters) – Mexican airline Viva Aerobus believes the U.S. government’s delay in reviewing a planned cooperation with Nevada-based Allegiant Air is political rather than technical, the Mexican carrier’s chief executive said on Wednesday.
U.S. regulators suspended their review of the joint venture last year, citing concerns about Mexican government actions that could affect Mexico City International Airport (AICM).
Mexican government officials and executives said the concerns related to a government-ordered and presidential-driven move to move cargo flights from the capital’s main airport to a newer, more distant airport, as well as a reduction in takeoff and landing times at AICM.
“I would think (it’s political),” Viva CEO Juan Carlos Zuazua told reporters. “Obviously we’re in the middle of election season in the United States right now. We don’t know if it’s going to be before or after, but let’s hope (the connection comes through soon).”
The U.S. Department of Transportation (DOT), which claims the airport changes would harm existing airlines and potential new entrants, also moved to dismantle a similar joint venture between Delta Air Lines and Aeromexico this year.
Mexico has seen a boom in tourism from the United States in the years following the COVID-19 pandemic, but Mexican airlines’ capacity has been impacted by engine problems, aircraft shortages and slot limitations at airports.
Viva currently has around 21 planes grounded due to problems with Pratt & Whitney engines that are affecting airlines worldwide, Zuazua said. Rival Volaris has between 30 and 34 planes out of service, its CEO later added after a joint event to launch an anti-fraud campaign with US firm Accertify.
To increase its capacity, Viva has now switched to “wet leasing” – a practice in which one airline provides aircraft, crew and maintenance to another airline – despite union outcry against the use of foreign crew members.
Volaris, meanwhile, is “not yet at a point where it can afford wet leases,” said CEO Enrique Beltranena.
According to analysts, domestic flight prices have risen by around 15 percent over the past year due to limited capacity and a government-mandated reduction in slot allocation at AICM.
Mexican President Andrés Manuel López Obrador was hostile toward the country’s airlines during his time in office, frequently attacking Aeroméxico in his morning press conferences.
Last year he founded the military-run airline Mexicana.
López Obrador’s mentee and successor Claudia Sheinbaum is expected to take office in October.
“We have to work with (the new government) and talk to them,” Beltranena said. “Sometimes it’s easy to say, ‘We’re going to move things here or get rid of this or reduce the number of slots,’ but sometimes we don’t see the impact.”
(Reporting by Kylie Madry; Editing by Jamie Freed)
