Mexico announced on Thursday that its army-run airline will begin operations in September, but with a different twist – the flight attendants will not be soldiers.
Under the administration of President Andrés Manuel López Obrador, the Mexican army has taken control of various sectors including trains, law enforcement, tourism, and infrastructure projects. This also includes the management of a tourist ferry line operated by the navy at the Isla Marias islands.
However, the new Mexicana airline will have a civilian crew, as the Defense Department has decided to lease 10 Boeing 737-800 jets from the manufacturer. The leasing agreement covers not only the aircraft but also the provision of pilots and cabin crew.
Initially, Defense Secretary Luis Cresencio Sandoval stated that the contract with Boeing amounted to $4 billion but later corrected himself to say that it meant 4 billion pesos, which is approximately $235 million.
The airline is exploring the possibility of operating 20 routes between Mexico City and other major and mid-size Mexican cities, some of which currently have limited air service. Additionally, it aims to serve popular tourist destinations like Cancun.
Sandoval assured that ticket prices on the new airline will be 18% to 20% lower than those of private competitors. However, he remained uncertain about the airline’s profitability. If it proves to be unprofitable, the government may have to subsidize its operations.
The airline has been named Mexicana, after a carrier that was partly owned by the state, went bankrupt in 2010, and eventually closed down.
In a move that has raised eyebrows, the administration has agreed to pay the 8,500 former employees of the bankrupt Mexicana airline nearly $50 million for the brand name and some derelict properties. Critics argue that this amount far exceeds the market value.
The establishment of the new airline reflects President López Obrador’s support for state-owned companies and his trust in the armed forces as a force against corruption and dishonesty.
Notably, a military-led company is operating the new Felipe Angeles airport, which was built by the government to serve as a third airport for Mexico City. The army is also constructing a new airport in the resort town of Tulum on the Caribbean coast.
Besides boosting traffic at the underutilized Felipe Angeles airport, the army-run Mexicana aims to provide flights that will connect passengers to the president’s Maya Train tourism project. The army is responsible for the construction of this train line, which will link beach resorts and archaeological sites on the Yucatan Peninsula.
The army has created a subsidiary to oversee the operations of Mexicana, despite lacking experience in running commercial flights.
President López Obrador has suggested that the new airline might also serve the role of providing service to provincial airports on routes that are deemed unprofitable by commercial airlines. However, this idea may face challenges with current regulations that prohibit airlines from operating Mexican airports and vice versa.
