Airlines in Mexico Global vs Local Outlook Analysis¶
Global vs Local outlook¶
The airline industry value chain in Mexico exhibits a blend of trends that are consistent with global dynamics and those that are uniquely shaped by local conditions, regulatory environments, and market structures.
Globally, the airline value chain is influenced by major aircraft manufacturers, global leasing companies, international MRO providers, and the pervasive impact of global supply chains. Trends like the significant growth in ancillary service revenue are also observed globally across various airline models, particularly among low-cost carriers. [See Value Chain Analysis Volumes and Sizes], [See Market Players Analysis], [See Airlines in Mexico Porter's Six Forces Analysis] The industry worldwide is also grappling with the aftermath of global events impacting supply chains, leading to delays in aircraft deliveries and maintenance. [See Value Chain Analysis Bottlenecks], [See Airlines in Mexico Strategic Priorities and Investments Analysis] The power of global suppliers, such as aircraft and engine manufacturers and major leasing companies, is a strong global characteristic. [See Airlines in Mexico Porter's Six Forces Analysis] Competition in international markets is also a global constant, with major carriers vying for market share on lucrative routes. [See Airlines in Mexico Market Players Analysis]
Locally, the Mexican airline value chain is defined by specific market players, infrastructure characteristics, and regulatory factors. A dominant local trend is the rapid growth and market leadership of Ultra-Low-Cost Carriers (ULCCs), namely Volaris and Viva Aerobus, which have significantly reshaped the domestic competitive landscape with their focus on low fares and high ancillary revenues. [See Market Players Analysis] This level of ULCC dominance in the domestic market is a key local characteristic. Another critical local issue is the severe constraint on airport infrastructure capacity, particularly at Mexico City International Airport (AICM), and the challenges associated with operating a multi-airport system in the capital region. [See Value Chain Analysis Bottlenecks], [See Airlines in Mexico Porter's Six Forces Analysis] This infrastructure bottleneck is a significant local challenge that contrasts with regions globally that have successfully expanded airport capacity or optimized multi-airport systems. The shortage of air traffic controllers within SENEAM is another distinct local bottleneck impacting operational efficiency and safety. [See Value Chain Analysis Bottlenecks], [See Airlines in Mexico Strategic Priorities and Investments Analysis]
Comparing the global and local outlooks reveals several similarities and differences. Similarities include the impact of global supply chain disruptions on fleet management and MRO activities in Mexico, mirroring challenges faced by airlines worldwide. The growing importance of ancillary revenues as a revenue stream is also a shared trend between Mexican ULCCs and global low-cost models. The influence of global aircraft manufacturers and leasing companies is felt directly in Mexico, as is the presence of international MRO providers. The high bargaining power of global suppliers is therefore a shared challenge. The competitive dynamics on international routes, particularly the significant presence of major US carriers on US-Mexico routes, reflects the broader global competition in cross-border air travel.
Differences primarily lie in the nature and severity of specific bottlenecks and the structure of the local market. While infrastructure constraints exist globally, the saturation of AICM and the complexities of the Mexico City multi-airport system present a particularly acute local challenge that significantly limits growth potential in the country's main hub. The critical shortage of air traffic controllers at SENEAM is a specific local issue impacting the efficiency of the air navigation system. The strong dominance of ULCCs in the domestic market, accounting for a very large percentage of domestic passengers, is a more pronounced feature of the Mexican market compared to some other regions where full-service carriers may hold a more balanced market share. The presence of a relaunched state-owned airline (Mexicana de Aviación), operated by the military, is another distinct local factor influencing the market structure, albeit with a currently small market share.
In conclusion, while the Mexican airline industry is integrated into the global aviation value chain and influenced by global trends and suppliers, its local outlook is heavily shaped by unique infrastructure limitations, workforce challenges, the specific competitive dynamics driven by dominant ULCCs, and the influence of local regulatory and government actions.
Trends detailing¶
| Aspect of Value Chain | Global Trend | Local (Mexico) Trend | Similarity/Difference |
|---|---|---|---|
| Infrastructure | Ongoing development and management of airport infrastructure; varying levels of capacity constraints globally. | Severe capacity constraints at key hub airport (AICM); complex multi-airport system challenges; shortage of ATC personnel. | Difference: Nature and severity of capacity bottlenecks and ATC shortage are particularly acute local issues. |
| Fleet Management | Reliance on global aircraft manufacturers and lessors; impact of global supply chain on deliveries/MRO. | Reliance on global manufacturers/lessors (e.g., Boeing, Airbus, ALC, CDB Aviation); significant impact of global supply chain disruptions (e.g., P&W engine issues). | Similarity: Affected by global manufacturing and supply chain challenges. |
| Airline Operations | Diverse business models (FSNC, LCC, ULCC); increasing focus on efficiency and cost management. | Dominance of ULCCs (Volaris, Viva Aerobus) in the domestic market; presence of a FSNC (Aeroméxico); nascent state-owned airline. | Difference: High concentration of market share by ULCCs domestically is a notable local characteristic. |
| Distribution/Sales | Growth of online channels and ancillary services; use of GDS/agencies. | Strong focus on direct sales and ancillary revenue generation by ULCCs; continued use of GDS and agencies, especially by FSNC and international carriers. | Similarity: Growing importance of ancillary revenue and direct sales channels. |
| Support Services | Provision of ground handling, catering, security by specialized firms. | Presence of international and domestic ground handling and support service providers (e.g., Swissport, PrimeFlight). | Similarity: Dependence on specialized third-party providers for essential support services. |
| Market Growth | Varies by region, generally showing recovery and growth post-pandemic. | Significant passenger growth in 2024, reaching record levels; strong domestic market driven by ULCCs. | Similarity: Exhibiting robust growth in passenger numbers, aligning with global recovery trends. |
| Competition | Intense competition, especially on high-traffic routes; impact of LCCs. | High intensity of rivalry domestically (ULCCs vs. FSNC) and internationally (Mexican vs. US carriers); price sensitivity. | Similarity: High level of competitive intensity across domestic and international segments. |
| Regulatory/Policy | Influenced by national and international aviation authorities (e.g., FAA, EASA). | Subject to Mexican aviation authorities (AFAC, SENEAM); historical impact of FAA safety rating; government policy on airport infrastructure and state-owned airline. | Difference: Specific impact of local regulatory decisions (e.g., airport strategy, safety rating history) is unique to the local context. |
References¶
- Resultados | 2T 2024 - Viva Aerobus
- Volaris Reporta Resultados Financieros del Cuarto Trimestre 2024: Utilidad Neta de $46 millones de dólares - Mziq
- Volaris 'anda volando bajo': Pierde 51 millones de dólares en primer trimestre de 2025 - El Financiero
- North American Summer 2025 Schedules: Network and Capacity Changes | Aviation Market Analysis - OAG
- Levanta VivaAerobus su utilidad neta en 26% en III-24 - El Financiero
- Viva Aerobus informa reporte trimestral correspondiente al tercer trimestre del 2024 - ALNNEWS
- Reporta Volaris año “notable” con utilidad neta de 126 millones de dólares - Aviación 21
- Volaris Reporta Resultados Financieros del Primer Trimestre 2024: Utilidad Neta de $33 millones de dólares - Mziq
- Mexico & Central America's Leading Airline Brand 2025 - World Travel Awards
- Mexicana transportó 256 mil de los 55 millones de pasajeros en vuelos nacionales en 2024; apenas 0.46% del mercado - Fábrica de Periodismo
- World's Best Airlines For 2025
- Reportes trimestrales - Volaris RI
- Indicadores de Transporte Aereo_enero 2024
- Indicadores de Transporte Aereo_marzo 2024
- Grupo Aeroméxico, S.A.B. de C.V. reporta resultados del segundo trimestre y seis meses terminados el 30 de junio de 2024 - Marketscreener
- Información Financiera Trimestral - investor cloud
- LATAM Airlines cerró 2024 con 82 millones de pasajeros transportados y el doble de utilidades que en 2023 | AméricaEconomía
- Registra LATAM Airlines ganancias récord y mayor número de pasajeros en 2024 - La República (Perú)
- Pasaje aéreo batió récord en México durante 2024 - Bien Informado
- Aeroméxico wins Cirium's Global On-Time Award 2024
- Sector de Aerolíneas en México - Grupo BMV
- The most in Mexico: American Airlines adds 30th destination as part of a record-breaking schedule
- Aeroméxico, lista para su oferta pública – El Financiero
- New Route of the Day - Americas (20 February 2025): Aeromexico between Mexico City and Cartagena - Air Service One
- Empresas aéreas en México ganaron más de 34 mil mdp en 2024 - El Financiero
- Best Airlines in the World in 2024 Based on On-Time Performance - Aviation A2Z
- Lideran aerolíneas mexicanas crecimiento internacional en Norteamérica: OAG | Aviación 21
- México supera los 119 millones de pasajeros en vuelos nacionales e internacionales en 2024
- México supera los 119 millones de pasajeros en vuelos nacionales e internacionales en 2024 - Swissinfo
- ALTA presents Mexico Aviation Insight
- LATAM Airlines cerró 2024 con 82 millones de pasajeros transportados y el doble de utilidades que en 2023 | AméricaEconomía
- Registra LATAM Airlines ganancias récord y mayor número de pasajeros en 2024
- Aeroméxico, la aerolínea más confiable de 2024, según Cirium - Yahoo Finanzas
- Viva Aerobus gana más pasajeros que Aeroméxico y Volaris en 2023 - Forbes México
- Aeroméxico espera "condiciones" para volver a cotizar en Bolsa - Yahoo Finanzas
- Cuenta de resultados Grupo Aeromexico (AEROMEX) - Investing.com
- IATA - Vision 2050 Report
- The Infrastructure Consortium for Africa - Profitability and the air transport value chain
- MBA Skool - Delta Airlines Porter Five Forces Analysis
- IMARC Group - Mexico Transportation Market Size and Forecast to 2033
- IMARC Group - Mexico Freight and Logistics Market Size and Share 2033
- Emplifi - Aeromexico | Emplifi case study
- MEXICONOW - Viva Aerobus and Volaris: two of the main airlines with the most complimentary income worldwide
- IBISWorld - Using Porter's Five Forces to Develop Business Strategies
- IATA - Understanding the pandemic's impact on the aviation value chain
- Research Dive - Airline Market Size & Growth Analysis by 2027
- CAPA - Centre for Aviation - Most of Mexico's airlines start 2025 on stable footing. Will geopolitics affect their durability?
- Viva Aerobus - Terms and conditions
- Mexico Business News - AICM Justifies Mexicana MRO Charges Under Airport Law
- Skift - Local Politics Threaten to Derail Mexico's New International Airport
- OAG - Latin America: The Airline Landscape | Aviation Market Analysis
- Aeromexico - Airline food and drink service
- ALTA - ALTA presents Mexico Aviation Insight
- Proyectos México - Airports
- International Trade Administration - Mexico - Aerospace
- Mexico Business News - Mexican Air Traffic Controllers Protest Poor Working Conditions
- Fábrica de Periodismo - Mexicana transportó 256 mil de los 55 millones de pasajeros en vuelos nacionales en 2024; apenas 0.46% del mercado
- Mexico Business News - Mexico Lacks 500 Air Controllers, Nearly Half Its Workforce
- Argus Media - Mexico's jet fuel demand set to shift
- Mexico Business News - Mexico's Top Airport Operators Net MX$98 Billion Profit
- ICF - MRO Market Update and Industry Trends
- Aviacionline - Top 20 Busiest Air Routes Between Mexico and the United States
- Magnetic Group - U.S. Aviation Supply Chain Challenges: Parts Shortages, Rising Costs & Labor Resource Crunches
- Quora - How are Micheal Porter's Five Forces relevant to an airline business?
- Quizlet - Porter's 5 Forces Flashcards
- NalsarPro - Directorate of Distance Education NALSAR University of Law, Hyderabad
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