News From The Americas

Richard Maslen April 20, 2011

AMERICAN AIRLINES TO SAVE MEXICANA?

American Airlines has emerged as a possible saviour for Mexicana, according to a local Mexican television station. The US carrier is allegedly set to join forces with TG Group, which last month had expressed an interest in buying the grounded carrier and returning it to the air. However, the proposed takeover deal fell apart when the investor missed the deadline to complete the deal. This would be a logical business move for American into a market where it has already confirmed a desire to further expand its network. In 2010, American Airlines was the second largest carrier on international flights to and from Mexico, handling an estimated 1.5 million passengers, a 13.4 per cent share of the 11.2 million O&D passengers that travelled between the two countries. Continental Airlines holds the largest share with 14.9 per cent of the traffic, carrying an estimated 130,000 more travellers than its rival. Any deal would also provide the carrier with access into the Mexican domestic market, which is now dominated by Aeromexico since Mexicana closed last year. Around 20.3 million passengers travelled internally in the country in 2010.

DELTA TO CUT CAPACITY ON BOSTON – LONDON HEATHROW

US major Delta Air Lines is to reduce capacity on its Boston to London Heathrow route from June 2, due, according to sources, to low passenger demand. The carrier currently offers two flights every day using Boeing 767-400ERs, although from the start of June the airline will switch one of its flights to a smaller 757-200. The route is also served by American Airlines, British Airways (BA) and Virgin Atlantic Airways, which together with Delta Air Lines offer eight daily flights between the destinations. An estimated 640,000 O&D passengers travelled between London Heathrow – Boston in the past year, with BA holding a 43 per cent share of this traffic. This is approximately a three per cent increase on the previous 12 month period. Delta only launched the London Heathrow – Boston link at the end of last month, believing that it could grab a part of the sizeable business market between the two cities. Since 2007, when the US and UK governments liberalised air service access between their two countries, Delta has added more non-stop services to Heathrow than any of its US rivals. The airline has grown from no services to the airport in 2007 to 10 daily flights from six US cities this summer, with non-stop service from its hubs in Atlanta, Detroit, New York JFK, and Minneapolis-St Paul as well as Boston and Miami.

COPA AIRLINES COLOMBIA BOOSTS SCHEDULES TO CANCUN

A second weekly flight is to be launched by COPA Airlines Colombia between Bogota and Cancun from June 15. In addition to the Saturday flight, launched in December 2010, the carrier will add a Wednesday rotation having seen stronger than forecast demand on the route. An estimated 650 O&D passengers have been carried on the direct flight during the first three months of operation, with a further 1,400 travelling via indirect services offered by the carrier. The additional flight will be operated by an Embraer 190. Meanwhile, COPA Airlines Colombia is to modify its planned development in the Venezuelan market. It was reported last month that the carrier was to offer flights to Caracas from Bogota and Cartagena from June 14. However, the planned twice weekly Cartagena link has been delayed indefinitely, while the Bogota flight will not now start until July 4. The Colombian carrier will offer 13 flights per week on this route using Embraer 190s. Avianca currently already offers flights between the two capital cities, as well as from Bogota to Valencia. Approximately 260,000 O&D passengers travelled between Colombia and Venezuela in the past year, with more than 55 per cent using Avianca’s link between Bogota and Caracas.

INSEL AIR’S FIRST DATE WITH CHARLOTTE

Caribbean carrier Insel Air is to launch flights to Charlotte Douglas International Airport in North Carolina, USA in June. The twice weekly flight from its Curaçao base has been made possible by the acquisition of a fifth McDonnell Douglas MD-80, due for delivery in May. The airline will co-operate with US Airways on the route, which will begin on June 22, through an interline partnership. In the last week Insel Air inaugurated a twice weekly link between Curaçao and Medellin, its 13th destination. The flight operates with an interline partnership with Colombian flag carrier Avianca. Medellin, known as ‘the city of eternal spring’, with a population of nearly 3 million people, offers visitors an array of restaurants, shopping, business and leisure activities and it holds the largest Fernando Botero collection on display in the world. The flourishing Medellin economy is also driven by a large textile industry, as well as the flower (cutting) business, and has a very lively cultural scene.

JETBLUE TO FLY SAN JUAN – ST MAARTEN

US budget carrier JetBlue Airways is to reinforce its position as the largest carrier in Puerto Rico in terms of capacity, by enhancing links between San Juan and neighboring Caribbean islands. The airline plans to launch a non-stop daily service to St Maarten from November 17, subject to receipt of government approval, its eighth non-stop destination out of San Juan and its third out of St Maarten. This will be the airline’s second intra-Caribbean route following its link from San Juan to Santo Domingo, Dominican Republic. “Increasing air access to Puerto Rico is essential for our tourism industry, commercial development, and homeport cruise market,” said Jose R Perez-Riera, Secretary, Economic Development and Commerce of Puerto Rico. “We are grateful for the support that great airline partners like JetBlue have given to our market. This new service strengthens our position as a hub of the Caribbean and is the result of a successful working relationship that we have maintained with our partner airlines.” This summer, JetBlue will have 27 daily departures from San Juan and 34 daily departures from Puerto Rico, including Aguadilla and Ponce. This new route will also provide convenient connections to St Maarten from New York’s John F Kennedy, Boston’s Logan International, Orlando International, and Fort Lauderdale/Hollywood International airports.