Business · Companies · 5 hrs ago

Aeroméxico chief says Viva Aerobus-Volaris merger would concentrate market

Aeroméxico chief says Viva Aerobus-Volaris merger would concentrate market

Viva Aerobus and Volaris are seeking to merge in Mexico, and the antitrust regulator is reviewing the proposal.

Aeroméxico CEO Andrés Conesa said the merger would create greater market concentration than a past case involving his airline.

More than 25 years ago, regulators rejected Aeroméxico's request to sell CINTRA, a state-owned group that also owned the former Mexicana, as one company.

CINTRA was later split up in 2000 over concerns about concentration.

If approved, the combined airline would carry 75% of passengers in Mexico and have half of the country's registered aircraft.

Conesa said Aeroméxico would keep investing in its product and customer experience, regardless of whether the merger goes ahead.

A decision is expected before the end of the year.

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What people are saying

Andrés ConesaAeroméxico chief executive
We made a request to the previous Cofece to sell CINTRA and they told us no. They said we had to sell them separately, and at that time the concentration was lower than the concentration that would result if these two merged today.
via El Financiero
In the end, it is our job to do our work well; regardless of whether they consolidate, we have to keep investing in improving the product and offering our customers an experience.
via El Financiero