Delta about to get 49% of AeroMexico
Dec 2, 2015, 7:09 pm
#3
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I really don't see it happening. The routes that AM and DL fly don't really form any basis for a JV. I can see DL pushing more S. America destinations to AM, but via codeshare not JV. I just don't see the revenues or routes being there for a proper JV to work. Expanded codeshare with more push onto AM flights though makes sense.
Dec 2, 2015, 7:18 pm
#4
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I really don't see it happening. The routes that AM and DL fly don't really form any basis for a JV. I can see DL pushing more S. America destinations to AM, but via codeshare not JV. I just don't see the revenues or routes being there for a proper JV to work. Expanded codeshare with more push onto AM flights though makes sense.
Dec 2, 2015, 7:25 pm
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Dec 2, 2015, 8:48 pm
#6
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People seem to be forgetting that Mexico is, by far, the most popular foreign destination for Americans. It really isn't even close. Those thinking that the point of any tie-up is to route people to GRU are likely overthinking this.
Dec 2, 2015, 11:29 pm
#8
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Although, tourists probably don't make a ton of cash for the airlines anyway.
Dec 3, 2015, 2:10 am
#9
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Dec 3, 2015, 3:31 am
#10
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I wouldn't be so sure. 75% of airline passengers are not flying for business.
https://encrypted.google.com/url?sa=...CgV6O8JSIZZ4pw
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Dec 3, 2015, 5:20 am
#11
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True, but take out the people that are driving across the border and the cities that have direct flights from the US and there isn't much left. And the direct routes are typically a good value / lots of competition, so I don't see connecting in MEX being a big draw for tourism.
2) The market may be challenging, but DL's continued service suggests there is some value there.
3) If yields are low, as you suggest, all the more reason to hook up with AM, which likely has a lower cost base.
4) The macro trends in much of South America, including Brazil and mining-driven Chile are very unfavorable.
Like I said, people are overthinking the rationale behind any potential tie-ups. Asking why DL would want ties with AM that would potentially give the combination an enviable position in a massive total travel and trade market seems misplaced.
Dec 3, 2015, 7:58 am
#12
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1) Even ignoring those that drive, the sheer numbers are so massive that there is pretty much no way that the volumes flying to Mexico aren't more than 10x those flying anywhere else in Latin America.
2) The market may be challenging, but DL's continued service suggests there is some value there.
3) If yields are low, as you suggest, all the more reason to hook up with AM, which likely has a lower cost base.
4) The macro trends in much of South America, including Brazil and mining-driven Chile are very unfavorable.
Considering that Mexico is the US's 3rd largest trading partner and sees around 900% more trade than Brazil (nowhere else in SA even registers in the top 10), the assumption that travel to Mexico is exclusively tourism-related is almost certainly very wide of the mark. Indeed, I'd have to think that the volume of trade and the volume of travel makes it likely there is more business travel to Mexico than there is total travel to anywhere else in Latin America.
Like I said, people are overthinking the rationale behind any potential tie-ups. Asking why DL would want ties with AM that would potentially give the combination an enviable position in a massive total travel and trade market seems misplaced.
2) The market may be challenging, but DL's continued service suggests there is some value there.
3) If yields are low, as you suggest, all the more reason to hook up with AM, which likely has a lower cost base.
4) The macro trends in much of South America, including Brazil and mining-driven Chile are very unfavorable.
Considering that Mexico is the US's 3rd largest trading partner and sees around 900% more trade than Brazil (nowhere else in SA even registers in the top 10), the assumption that travel to Mexico is exclusively tourism-related is almost certainly very wide of the mark. Indeed, I'd have to think that the volume of trade and the volume of travel makes it likely there is more business travel to Mexico than there is total travel to anywhere else in Latin America.
Like I said, people are overthinking the rationale behind any potential tie-ups. Asking why DL would want ties with AM that would potentially give the combination an enviable position in a massive total travel and trade market seems misplaced.
While DL is happy to serve a lot of the beach markets, and scale them up seasonally. But Unless DL wants to start flying their own metal into a ton of secondary markets, or add a lot of frequency to the places they do fly, a tie up with AM makes plenty of sense. Just like DL doesn't want to fly to every second and third tier European city, hence KL/AF onward connections in AMS/CDG.
Dec 3, 2015, 8:11 am
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Dec 3, 2015, 9:59 am
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This could be interesting. I've seen some trip reports of decent service in business-class and reasonable airfares. I wouldn't be opposed to flying to Mexico City and then to London if the airfare was good and I received full miles. However, I think I saw that Aeromexico's new 787 business-class is two across, which is a no-go for me.
Dec 3, 2015, 10:39 am
#15
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This could be interesting. I've seen some trip reports of decent service in business-class and reasonable airfares. I wouldn't be opposed to flying to Mexico City and then to London if the airfare was good and I received full miles. However, I think I saw that Aeromexico's new 787 business-class is two across, which is a no-go for me.
I got 200% MQM in J. MQD and RDM were calculated based on distance and I got substantially more MQD than the cost of my ticket.
Last edited by Mountain Explorer; Dec 3, 2015 at 10:45 am