Volaris: Chihuahua improves connectivity with 4 new air routes

The airline Volaris said it is strengthening its operation in Monterrey with improvements in hours and tariffs that add value to the product
The airline Volaris said it is strengthening its operation in Monterrey with improvements in hours and tariffs that add value to the product

Recreational tourism will be incentivized with the destinations Hermosillo, Mexicali, Mérida and a flight from Juarez to Hermosillo, operated by Volaris.

Chihuahua now has better connectivity with the new air routes to Hermosillo, Mexicali, Mérida and from Juarez to Hermosillo, operated by Volaris, at a cost of 699 pesos and above.

"This gives us competitive advantages because it saves time, due to the importance of business tourism in Chihuahua."

It will be the first time that Chihuahua has a flight to the city of Albuquerque, New Mexico, that Volaris will operate from Chihuahua starting in June. The director of Development of Volaris added that the company of which it is a part currently connects the city of Chihuahua with 18 destinations.

Volaris turned 13 yesterday and already has its Volaris Costa Rica division; it was the first Airbus 320 operator in North America and is among the 10 safest airlines in the world. In addition, in 2018 it transported 18 million passengers, of which 14 million were within the Mexican Republic, which positions it as one of the best in the country.

The Juarez-Tijuana and Chihuahua-Denver routes showed an exponential growth since Volaris started operating both flights.

The executive announced that as of April 1 the Juarez-Mexico flight will be operated and on June 18, the Chihuahua-Albuquerque, Chihuahua-Querétaro and Chihuahua-Juarez routes will begin.

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Volaris will open a new route that will connect Los Cabos with Monterrey

The Mexican airline Volaris announced that in November of this year it will open 2 new routes in Monterrey, including Monterrey-Los Cabos and Monterrey-Oaxaca, in order to expand the connection with different federal entities in the national territory.

The company mentioned that both routes will have a daily frequency and will start operations in November, with a rate of 629 pesos.

The airline said it is strengthening its operation in Monterrey with improvements in hours and tariffs that add value to the product.

Likewise, the head of the Ministry of Tourism, Economy and Sustainability (Setues), Luis Araiza, stressed that it is intended to promote Baja California Sur in other parts of the world, since the London - Los Cabos international flight is on the doorstep. which will start operations from November 1 to 4 of this year.

Finally, it should be noted that in 2016 Volaris added 2 new routes at the Toluca International Airport, with which it connects the State of Mexico with Los Cabos and increases the connection with Monterrey, Nuevo León.

Volaris surpassed Aeromexico in passenger numbers within Mexico and now in the Stock Exchange 

The low-cost airline exceeds in value to the firm controlled by the US Delta. Cost control has been key to its recovery in the market.

The low-cost airline Volaris left behind the bad moment that it lived in the Mexican Stock Exchange (BMV) last year. Now, the company, which in 2018 dethroned Aeromexico in the transport of passengers within the country, exceeds this same competitor in market value.

As of the second half of February, Volaris broke the ceiling of 16,000 million pesos (mdp) in stock market value, leaving behind Aeromexico, which fell below 14,000 mdp, according to data from Bloomberg.

The main airlines in Mexico had a year to forget in 2018, with losses and cuts in personnel, routes and aircraft. However, Volaris, which increased its losses to 687 million pesos, from 652 million pesos in 2017, contained its operating costs. "This is a company that tries to incentivize traffic based on generating low rates. Volaris has been able to do it because it has had control of expenses, "Marco Antonio Montañez, the analyst at Vector Casa de Bolsa, said in an interview.

The operating cost of Volaris per seat-mile (CASM), excluding fuel, contracted 9.3%, to 4.5 cents at the end of 2018. Aeromexico -which does not have a low-cost strategy- raised its costs 7.1%, to 9.7 cents. Due to these results, Aeromexico, whose losses went from 69 mdp in 2017 to 1,879 mdp in 2018, announced that its air capacity would not grow.

"The company is cautious, and sent this message to the market to take great care of its profitability and to grow practically nothing this year," said Rafael Antonio Camacho, an analyst at Banco Ve por Más. "But that, in perspective, is not favourable for the market. , because the company will grow little in income, given that the competitive environment continues."

According to the analysts consulted, another of the factors that play against Aeromexico among investors is the uncertainty about the three airports plan proposed by the government after canceling the Texcoco airport. The administration wants the Santa Lucia base, the current capital airport and the Toluca aerodrome to operate simultaneously.

Aeromexico may be more affected than Volaris by this scheme because its business model needs to concentrate its flights in a single airport. The ideal scenario for Aeroméxico would be to operate only from the International Airport of Mexico City.

However, low-cost Mexican airlines, such as Volaris and VivaAerobus, may also face lower-than-expected growth during 2019, particularly if the Mexican economy slows and international traffic does not grow, Barclays estimates in a study.

The airlines that operate in the country had their lowest growth in passenger traffic in the last five years in 2018, but they managed to grow anyway: last year, this increase was 7.6% at an annual rate, adding 97.2 million passengers It is a record for the seventh consecutive year.

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