Low-cost airlines drive down ticket prices across Mexico
By David Agren, Jan 26, 2007

When San Miguel de Allende resident Randy Harriman went searching for cheap tickets for a flight to Cancún last fall, he looked at flying out of León, Querétaro or Mexico City—the usual places—on a conventional airline. He eventually found the lowest fares with Volaris, a newly launched discount carrier based out of Toluca, state of Mexico, the state capital 70 kilometers west of Mexico City. So, instead of shelling out 3,800 pesos per ticket—the price quoted by a local travel agent—he paid just 2,500 pesos. And although he paid a lower price, the experience was anything but cheap.

“The service was excellent,” he raved, adding that he and his wife, Suzie, flew in a fairly new plane and received complimentary snacks and drinks, including the alcoholic kind that US carriers stopped serving free of charge years ago. “The flight to Cancún was particularly comfortable, with super leg room,” he enthused.

Over the past year, a spate of discount carriers modeled on successful foreign outfits such as Southwest Airlines, Westjet and Ryanair have taken off in Mexico, extending competition into an industry once firmly in the grip of an unseemly duopoly and that was sputtering along under the conditions of an enormous government bail-out in the mid 1990s. (AeroMexico is still partially owned by a government-controlled holding company, which was able to privatize Mexicana last year.) And while certainly inexpensive, the new carriers generally fly new aircraft and offer a level of service on par with the established domestic carriers. The low prices, which at times compare favorably with luxury bus service on some routes, have also broken the AeroMexico-Mexicana duopoly on popular runs between some of the Republic’s most popular destinations—especially for travelers in Mexico City, Guadalajara, Monterrey, Tijuana and Cancún. But even travelers in the provinces have taken advantage of the plunge in prices; a quick scan 
of certain flights out of Querétaro, which is now served by three discount carriers, shows fares for as low as half of the established players’ rates.

While lower-price airlines such as Aviacsa, Aerolineas Azteca and Aerocalifornia—a carrier infamous for tardy service and flying an aging fleet of DC9s that was grounded due to safety concerns last spring—have operated for a while, the most recent attempt at fomenting a low-cost industry began in the summer of 2005 with the advent of Avolar, a Tijuana-based carrier, whose cheery orange color scheme resembles something out of a Hooters restaurant. Others followed, including airlines owned by aviation pioneers like Irishman Tony Ryan of Ryanair fame and some of the titans of Mexican industry—people like Telmex czar Carlos Slim, the world’s third-richest man, and Televisa boss Emilio Azcarraga Jean, both of whom ironically grew rich by milking monopoly cash cows and leveraging government connections.

Interjet, though, has perhaps been the most successful—or at least the most prominent—since commencing operations in December 2005. Owned by the son and grandson of former president Miguel Aleman—who grew fabulously wealthy in the 1950s by developing property in Acapulco around the same time as a new airport was built in the burgeoning resort—the carrier took its cue from airlines such as Southwest. Like Southwest, Interjet operates only one type of aircraft, the Airbus A320. It jets point-to-point and avoids offering connecting services. It also followed the example of European carriers such as Ryanair—which is now a part of the Mexican discount fray—by operating from an alternative, underused airport, Toluca, just outside a major population center.

The concept has proved popular in Mexico, where both AeroMexico and Mexicana previously carved up the country’s route map and often code-shared on popular runs like Guadalajara to Mexico City and kept prices high. According to consumer watchdog Profeco, the new carriers have so far received few complaints. 

A November poll found the four main discount carriers scored higher in customer satisfaction than both AeroMexico and Mexicana. The service perks on the discount carriers often go beyond receiving a complimentary rum and Coke on flights taking off after 11am. (Interjet boasts in its advertisements: “Giving you the luxury of paying less.”) The airlines’ new planes—at least the ones used by Interjet and Volaris—feature leather seats and in-flight entertainment. (Volaris’s safety demonstrations are given via a video starring a well-known telenovela star instead of the flight attendants.) Changing tickets is often inexpensive; Interjet charges just 100 pesos. Tickets are usually sold via the Internet; eliminating travel-agents’ commissions is part of most discount airlines’ business plans. Volaris offers a free shuttle bus between the Toluca airport and Mexico City’s upscale Santa Fe district and also just recently initiated transportation between the Tijuana airport and downtown San Diego. (The Tijuana airport i
s already quite close to the San Ysidro border crossing.) Price, though, continues to be the greatest draw, especially for travelers flying out of Querétaro and León.

Alma, a Guadalajara-based carrier that uses 50-seat regional jets; Viva AeroBus, a joint effort launched by Ryanair and the Primera Plus bus company; and Avolar offer flights to six destinations from Querétaro. Volaris, which mainly uses Toluca as a base, now jets between León and Tijuana.

Viva AeroBus flies from León to Monterrey. (A one-way ticket on Viva Aerobus from León to Monterrey was recently advertised for only 381 pesos.) On Alma, a round-trip flight to Puerto Vallarta in January goes for 3,059 pesos.

A similar fare advertised on Mexicana's website sold for 5,448 pesos. Besides Puerto Vallarta, Alma also flies to Monterrey, Chihuahua, Guadalajara and La Paz, Baja California Sur. Avolar jets from Querétaro to Tijuana via Guadalajara on a daily basis. Fares start at around 1,200 pesos one-way.

On the downside, the new airlines generally use the Toluca airport, a facility popular with cargo operators and private jets, instead of Mexico City, where the country’s main international airport is cramped for space. (Plans for a new airport east of the capital were scuttled in 2002 after machete-wielding campesinos refused to be relocated. Click, a discount subsidiary of Mexicana, uses the Mexico City airport.) Due to the influx of traffic over the past year, the Toluca airport’s facilities are somewhat overburdened. The airport lacks a luggage carousel and the departure lounge features few amenities, save a vendor selling the usual assortment of overpriced gum, newspapers and goodies. Toluca is at an elevation of more than 8,000 feet, and passengers shiver in the check-in lines during the winter months. Jetways have yet to be built. Randy Harriman said he arrived two hours early at the airport because all luggage—both checked and carry-on—is hand-searched. The lack of facilities has, in part, kept interna
tional carriers away from the airport; only Continental offers international service from Toluca.

On the plus side, lines are generally short and parking is ample and less expensive than at many airports, although it still reportedly costs 100 pesos per day. (Harriman stayed overnight at a hotel next to the airport that allowed him to leave his car on its property free for an entire week.) Harriman drove to Toluca from San Miguel and said the journey took about 3.5 hours. Most of the highways along the way are divided, except a 40-kilometer stretch between San Juan del Rio, Querétaro and Atlacomulco in the state of Mexico. Bus service between Querétaro and Toluca is frequent. No San Miguel de Allende airport transportation company advertises service to Toluca yet, although that might change with increased demand.

Harriman said he’d fly out of Toluca again on a discount airline, although going back to Cancún was another matter. “We don’t plan on going back to Cancún,” he commented. “But if I did, or if Toluca offered flights to our part of the US, I would certainly do it again. I’d recommend it to others.” 

David Agren, born in Germany, raised in Chilliwack, CB.C. and now living in his adopted home of Guadalajara, has been covering Mexican news since January 2005. His articles have been published bye the Heraldo de México, World Politics Watch, the Calgary Herald and the Ottawa Citizen, to name a few. He blogs on Mexican affairs at www.agren.blogspot.com 



Mexican discount carriers


Avolar: 

Mostly covers northwestern Mexico and is based in Tijuana. It offers service on Boeing 737 jets from Querétaro to Guadalajara and Tijuana ( www.avolar.com.mx ).



Alma de Mexico:

Based in Guadalajara, it also flies between destinations in central and northern Mexico. From Querétaro it jets to Guadalajara, Chihuahua, Monterrey, La Paz and Puerto Vallarta ( www.alma.com.mx ).



Click:

A subsidiary of Mexicana that was created by using the fleet of defunct regional carrier AeroCaribe. It flies to 18 destinations, including Havana, Cuba ( www.clickmx.com ).



Interjet:

From Toluca, Interjet offers service to 12 Mexican destinations, including Cabo San Lucas, Cancún and Acapulco ( www.interjet.com.mx ).



Magnicharters:


Although not a discount carrier, the charter company flies to Mexican sun destinations from León and Mexico City. Prices are generally low and tickets are available through travel agents.



Viva AeroBus:


Founded by European aviation pioneer Tony Ryan, the airline operates out of Monterrey and has flights to the city from both Querétaro and León. Unlike its peers, Viva AeroBus charges for snacks and beverages and imposes strict baggage limits, although its base fares are extremely low ( www.vivaaerobus.com ).



Volaris:

A partnership of Carlos Slim, Emilio Azcarraga Jean and Central American airline Taca, it mostly flies from Toluca, but it also has a León–Tijuana run ( www.volaris.com.mx ).