At present, the Mexican airline Interjet is grounded, going through an infinite debt of greater than US$900 million, and with out readability on its future. Interjet appears to be going through the ultimate days, after working in Mexico since December 2005. Let’s do a fast recap of Interjet’s historical past.
How did Interjet seem?
The Alemán household based Interjet in 2005. Miguel Alemán Velasco and Miguel Alemán Magnani are two outstanding businessmen, son and grandson of a former Mexican president.
The low-cost trio confronted a seemingly uphill battle in these years. The Mexican aviation trade had two heavy titans in Grupo Aeromexico and Mexicana de Aviacion. There have been different smaller carriers like Aerocalifornia, however the market share was divided principally amongst Aeromexico and Mexicana.
Furthermore, these two airways operated from Mexico Metropolis airport, grabbing all out there slots. Subsequently, Interjet and Volaris began working out of Toluca International Airport, a small hub an hour and a half away from Mexico Metropolis. Viva Aerobus used Monterrey as its hub.
Throughout its first yr of operations, Interjet transported over 1.25 million passengers. It used a fleet of seven Airbus A320 that beforehand flew with Volare Airways in Italy. Domestically, in simply that yr, it was the fourth most essential service in Mexico, proving that it had a enterprise mannequin that may very well be efficient.
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The low-cost origins
Interjet launched operations as a low-cost airline. The service disrupted the market, together with Viva Aerobus and Volaris. Consequently, the fares within the nation dropped, and even Mexicana felt the stress, responding by launching its low-cost subsidiary, Mexicana Click on.
In addition to the recognized low-cost traits, Interjet provided a couple of distinctive concepts throughout its first years. For example, it launched Membership Interjet, as talked about by Airways Magazine again in 2013.
It took the airline three years to be worthwhile. By 2011, it was already the second-largest operator within the nation, after Mexicana de Aviación ceased operations in August 2010.
In its origins, Interjet regarded like JetBlue. Nonetheless, the Mexican airline began drifting from its low-cost ideas, and all of it might have began in 2011.
The Sukhoi debacle
In 2011, Interjet inked an order to accumulate as much as 30 Sukhoi Superjet SSJ100. The unique order was for 15 Russian constructed planes, for a complete value of US$650 million. On the time, the deal was graded as a discount for Interjet and a superb transfer for Sukhoi, because it was getting into a brand new market within the Americas.
Sadly, Interjet solely ever acquired 22 Sukhoi planes. And so they got here with many points. One in all these points was the dearth of spares. The airline by no means received a dependable flux of upkeep spares and cannibalized a few of its airplanes to maintain the remaining flying.
Within the meantime, Interjet expanded its attain. It began working flights into the US, Canada, and a few nations in South America. By 2019, it linked over 80 locations in ten American nations. It had a 50-50 distribution between home and worldwide cities served.
Can we clarify the monetary bother?
The Sukhoi fleet isn’t the one factor answerable for Interjet’s troubles. In keeping with the Mexican Authorities, Interjet stopped paying taxes in 2013, increase a debt that now appears unpayable.
The airline provided extremely low fares, however onboard, it drifted farther away from the low-cost concept, aiming to compete in consolation with Aeromexico. Many passengers these days grade Interjet’s service as the most effective among the many prime 4 Mexican airways. However it got here at a value.
Since 2013, the airline was worthwhile solely in 2013, 2015, and 2016, in accordance with its monetary outcomes. Between 2017 and the primary quarter of 2019, the airline had a complete internet lack of 4.16 billion pesos (over US$211 million). It hasn’t publicly printed its monetary outcomes since.
The COVID-19 pandemic appears to be the ultimate nail within the coffin. Beginning in 2020 Interjet was making an attempt to shift the airline’s historical past. It was making an attempt to eliminate its Sukhoi jets, to deal with an all-Airbus fleet, whereas pushing its US connectivity. However, it was too late.
In March, when the pandemic arrived in Mexico, the leasing corporations began repossessing Interjet’s fleet. It went from having 66 Airbus plane to zero in months. The airline needed to deliver again the Sukhoi and function a lowered route map. Finally, the cash ran out, and Interjet couldn’t afford to pay for gasoline.
Interjet stopped flying on December 11, 2020. Formally, it hasn’t ceased operations. However, the airline faces a large strike from its greater than 5,000 staff. Moreover, the Mexican Authorities has said that it received’t rescue the airline.
Did you ever journey with Interjet? How was it? Tell us within the feedback.