On 5 August 2020, Interjet and Aeromar signed a codeshare agreement. Two months later, it is over. Both Mexican airlines decided to end the deal because “it suits our needs better,” as Aeromar said in a statement. Let’s investigate further.
A troubled beginning
It is no surprise to hear that Interjet has had a very difficult 2020. It lost 100% of its Airbus A320 family fleet due to leasing companies’ repossessions. The Mexican airline also faced a change in management and ownership.
In the meantime, Interjet reduced its route map drastically. It went from having more than 80 destinations across several countries in America to flying only ten domestic routes. Interjet’s crisis did, however, give a second stint to its Sukhoi Superjet fleet, which was previously parked.
But Aeromar wasn’t having the best of years either. According to data provided by the Mexican Government, Aeromar had a 67.5% decrease in passengers transported during August. It was flying seven out of its 10 ATR aircraft. Aeromar also reduced 16.7% of its routes and was operating 54.6% fewer flights. It was in this context that both carriers decided to sign a codeshare agreement.
“We expect to increase the reach of the agreement in the short term, to cover the whole route map of both carriers,” said Aeromar in a statement. Initially, both airlines were selling seven routes out of Mexico City International Airport. A few weeks later, both companies signed a wet lease agreement, which allowed Aeromar to operate a few flights for Interjet. That is also over, due to lack of payment by Interjet, according to Aeromar pilots’ union.
Aeromar also has arrears
Aeromar is a small regional carrier. It has a fleet of ATR aircraft which uses to connect underserved city pairs. Nevertheless, it has had a troubled past.
Last year, the news was that Aeromar might have gone bankrupt and that Avianca could have been interested in acquiring it. There was even a name: Avianca Mexico. Alas, that never happened, Avianca changed management, and the possible deal disappeared from the radar. Last year, Anko van der Werff, Avianca’s CEO, said to A21,
“I never thought investing in Aeromar was a good idea because there wasn’t any value. We have a codeshare agreement with Aeromexico, which is bigger and has more frequencies. Investing only to acquire a company or a brand doesn’t have value.”
Now, with the Interjet-Aeromar codeshare agreement, there was a renewed interest in the future of Aeromar’s brand. According to some Mexican journalists, Interjet’s new management was planning on acquiring Aeromar. But the deal fell off after the businessmen found out that Aeromar had a larger debt than it initially declared.
Both companies are following their own paths from now on. Interjet is still waiting for its US$150 million investment and a possible new Airbus order. Aeromar recently signed an alliance with a tour operator and will launch flights to its second international destination, Cuba.
Aeromar’s future is in the balance. Mexico has three larger airlines, Volaris, Aeromexico, and Viva Aerobus, and five regional players, Interjet, Aeromar, Magnicharters, TAR, and Aéreo Calafia. The small regional airlines will have to adapt to a shrunk market, but their futures are uncertain.
Interjet’s future is also in the balance. The company still has a ton of debt, and its reputation is taking a toll on customers and employees.
What do you think of the latest development of Interjet’s 2020? Let us know in the comments.