Mexican Low Cost Airlines

I recently analyzed the low cost airline market in Mexico, comparing Volaris and Interjet. The overall airline industry in Mexico is dominated by flag carrier Aeromexico with the largest fleet, resulting in many more frequencies than all competitors. Besides Aeromexico, there are a number of low cost and regional airlines competing for domestic passenger traffic. This competition makes it easy to fly to most cities in Mexico at reasonable fares. Low cost carrier Volaris serves approximately 30 destinations in Mexico and 12-15 in the US. Volaris is 2nd to Aeromexico in international market share. Their aggressive growth strategy and aircraft on order (47 in service , 42 on order) will enable Volaris to gain domestic market share from Interjet and possibly international market share from Aeromexico. Interjet serves more cities in Mexico (43) than Volaris but far fewer US cities. A third low cost Mexican carrier, Viva Aerobus serves 27 domestic destinations and has very few US flights. Viva Aerobus has a smaller fleet  so will need to add aircraft in order to gain market share from Volaris or Interjet.

Middle East Logistics Challenges

Ad Hoc Logistics is advising an aerospace company about exports to the Middle East. Air freight and express service into the region is not a problem with a number of options and reliable transit times. The challenges are on the regulatory side as well as movement within countries. The client has experienced customs delays of mission critical shipments so we will be working on three issues:

1) Identify and engage a forwarder with strong capabilities within the region.

2) Identify country specific documents needed for entry.

3) Identify and engage customs brokers in the destination countries to ensure smooth and timely clearance.

Export Control Reform Changes

Gwen Jaramillo Presentation      Initial changes under Export Control Reform are effective today (10/15). Implementation was outlined on Mass Export Website: Countdown To Compliance. Changes include movement of some items from USML to EAR, new license exception STA and other exception updates, AES changes, and 2 new “red flags” in EAR part 732. Exporters are encouraged to review current classifications, properly evaluate products under development, document, and train. Let us know if we can help.