The best that Mexican can offer these days as they cut most if not all flights, is that they are going to try to get back in the air as soon as possible.
At a bargain price someone sooner or later may pick up the pieces, but creditors will not be anxious to partake in a fire sale easily.
Over the past few years we have seen more and more mergers, with the big Delta/Northwest one creating a major ripple in the aviation industry.
Now two airlines that few of us have ever flown, or necessarily even heard of outside the travel industry, are ready to take their vows of marriage.
Both airlines are big deals in their respective South American countries. TAM Linhas Aeras is the Brazil airline that along with Chile’s LAN Airlines have carved big pieces of the Latin American aerial landscape with their individual subcompanies.
They will all be one soon, operating under the banner of LATAM Airlines Group, and would include LAN Airlines and its affiliates in Peru, Argentina and Ecuador; Lan Cargo and its affiliates; TAM S.A.; TAM Mercosur and all other holdings of LAN and TAM.
This is the way it is in the air carrier environment these days.
Is big better? Is it more profitable?
There does not seem to be any sign of that yet, but it is clear that some economies of scale should, sooner or later lead to better bottom line results.
Yet it is interesting to look at the number of smaller low cost carriers that seem to continue to show good results even in these challenging times.
Even if the big airlines should turn their profit pictures around, no one really expects that prices in an every increasing monopolistic style environment will benifit the consumer.
The bigger they are, the harder they fall…and nothing seems to have changed that in the traditional full schedule airline market.
so let’s wish the new guys good luck…and hope for the best for the rest of us.