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Interjet experiments with low-cost features, experts are wary

11/09/2019
Interjet experiments with low-cost features, experts are wary

Photo: Agencia Reforma (Sergio Castro)

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• LOW-COST: Mexico’s third largest airline Interjet may be attempting to go back to a low-cost model similar to the one with which they started back in 2005 but industry experts are warning that it may be a risky proposition given the strong competition in the country’s low-cost airline sector.

• THIRD AIRLINE: Just behind Volaris and Aeromexico, Interjet has approximately a 20% of the Mexican commercial airlines market but recently it may be experimenting with things like drastically reduced rates for passengers with no carry-on luggage, something more similar to a low-cost model.

• ORIGINALITY: “The challenge is to not lose those differentiators that make you different. It would be a mistake. I think the challenge is to keep those differentiators and achieve profitability by keeping them”, said Juan Antonio José, an independent airline industry analyst.

• TAX FIGHT: Interjet is fighting an order from Mexico’s revenue service (SAT) that alleges it owes more than USD 27 million in taxes not paid between 2013 and 2017; the company denied a report from Bloomberg in August quoting its CFO saying the company was in technical bankruptcy.

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  • Home
  • Opinion
    • Amy Glover
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    • Carlos Elizondo
    • Cecilia Farfán
    • David Shields
    • Gerónimo Gutiérrez
    • Guest Column
    • Jorge Suárez Velez
    • Joy Olson
    • Luis Rubio
    • Mia Armstrong
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    • Vanda Felbab-Brown
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© 2019 Mexico Today.