ALTA will share the keys to increasing the competitiveness of the regional air market at the Tianguis Turístico México 2023
Tianguis Turístico takes place in Mexico from March 26 to 29.
March 27, 2023
Panama, March 27, 2023 – The Latin American and Caribbean Air Transport Association (ALTA) and Amadeus will participate in the 47th edition of the Tianguis Turístico México, to be held in Mexico City from March 26 to 29.
During his speech, Juan Camilo Guerrero, ALTA's Head of Economics, will present the Air Transport Competitiveness Index for Latin America and the Caribbean, developed by both organizations.
This report, whose second edition was released in the last quarter of 2022, studies a series of factors that determine the competitiveness in the region for air transport and suggests what actions can be taken to generate better conditions to attract more and more investors, develop operations, jobs, connectivity and facilitate the arrival of more tourists.
Mexico's aviation industry stands out among the most competitive in the region thanks to its high level of connectivity and its air transport policy during the pandemic, as well as the markets to which a Mexican citizen can access without the need for a visa, highlights the study recently presented by ALTA and AMADEUS.
In fact, Mexico is one of the leading international passenger transport markets in the region. In January 2023, international passenger transport registered a growth of 16% compared to its 2019 levels and domestic growth of 25% over its pre-pandemic levels; "this happens thanks to a set of elements that catapult this country as an eligible destination for millions of passengers and because it has a robust domestic air market that offers Mexicans the safest and most efficient means of transportation. Despite the challenges, the airline industry in Mexico has many strengths, so we invite the authorities to continue working with the industry in making critical decisions that will impact operations," stresses José Ricardo Botelho, ALTA's Executive Director & CEO.
There are issues to address. For example, the country has an uncompetitive fuel factor. Furthermore, it is the fourth least competitive country in the region in terms of airport taxes, as it has two of the most expensive airports in the region: Mexico City and Monterrey, with an average airport tax of US$ 61.70. According to data from 2022, in Mexico when a passenger pays a ticket of 100 USD, 45% corresponds to taxes, fees and contributions. On a ticket of 50 USD, the tax reaches 61%. On average we could say that doubles the price of the ticket, making the possibility of flying substantially more expensive.
Another factor that threatens to detract from the nation's competitiveness is the discussion of enabling cabotage. "This is not a measure related to lowering air ticket prices, and it is a technical aspect that impacts air connectivity, and safety, among other aspects," Botelho noted. ALTA's CEO placed himself at the disposal of the Mexican authorities to study in more detail and with relevant technical information the measures that will impact aviation.
How can this trend of economic contraction be confronted? By increasing the effectiveness of the variables that make the aviation sector increasingly attractive and competitive, and of course, by making decisions based on technical evidence. ALTA's presentation at the Tianguis Turístico México 2023 will focus on this topic.
"This year ALTA will take its two largest events to Mexico, in May (ALTA CCMA & MRO Conference) and in October (ALTA AGM & Airline Leaders Forum) to develop an open dialogue and with a view to reinforcing collaborative industry-government work that promotes the socioeconomic benefits that aviation generates for more people." said José Ricardo Botelho, ALTA's Executive Director & CEO.
