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MARCH/APRIL 2006

www.visitmexicopress.com | northamericanpress@visitmexico.com | 1-800-929-4555

Low-Cost Airlines Boost Mexico Domestic Flights

Mexican tourism officials and airline representatives discussed the country's low-cost airline trend and its impact on the tourism industry at a press conference held at Tourism Tianguis 2006, Mexico's most important travel trade fair.

During the past year, several private and semi-private airlines such as Avolar (
www.avolar.com.mx), ABC Interjet (www.interjet.com.mx) and Volaris (www.volaris.com.mx), as well as Mexicana Airline's Click Mexicana (www.clickmexicana.com) have launched low-cost flights to different parts of Mexico.

Mexico's longest-running airline, Mexicana Airlines, initiated the low-cost airline trend with its July 2005 launch of Click. Avolar soon followed, introducing its fleet of three planes of less than 150 passengers in capacity in September 2005. Avolar hopes to service more than 800,000 tourists by the end of 2006. ABC Interject introduced its fleet of brand-new planes in December 2005.

The most recent addition to Mexico's low-cost domestic airline offerings with a March 2006 launch is Volaris, which initiated service with 55 airplanes holding up to 144 passengers each.

Mexico received 21.96 million international visitors in 2005, and travel to the country's less-frequented destinations is becoming increasingly popular. While air travel to destinations outside of Mexico's major airline hubs has traditionally been costly, the competition generated by the increased availability of domestic flights within Mexico is expected to drive down costs.

"This new network of air transportation is expected to increase domestic tourism among international visitors," said Mexico Tourism Secretary Rodolfo Elizondo. "Our government is confident in the potential growth of this market and is committed to supporting the business objectives of airlines that are offering low-cost services to consumers."

Only 6.5 percent of Mexican tourists currently travel via air within the country, leaving much room for growth. The country's diverse independent companies are taking advantage of this opportunity and focusing on the modernization of fleets and use of technology; increased labor productivity; and improving service and safety standards, while remaining committed to keeping costs low. The result is convenient air travel that at times is less expensive than ground transportation.

The promise of increased tourism made possible by inexpensive air transportation is driving the creation of strategic alliances between airlines and ground transportation, hotels and entertainment companies, as well as between destinations and other key players in the domestic and international tourism industry, said the representatives of several Mexican airlines such as Aeromexico.

Located only 40 miles west of Mexico City, Adolfo Lopez Mateos International Airport in Toluca serves as a central hub for the majority of the new low-cost airlines, alleviating the air traffic of other cities, such as Monterrey, Guadalajara and Mexico City.

The five airlines that spoke at Tourism Tianguis 2006 agreed that the increasing demand on the domestic airline industry creates a need for expansion of Toluca Airport. There are also plans for improved infrastructure and ground connectivity to other Mexican destinations, and for an increased number of expanded routes.

Mexico's domestic service currently caters to approximately 2.5 million passengers.


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