One More Thing:Mexican low-cost airline VivaAerobus, in which the family of the late Tony Ryan has a 49 per cent stake, appears to be gaining altitude.
Earlier this week, chief executive Mike Szucs, formerly of easyJet, predicted that passenger numbers would almost double in 2008 to some 2.4 million.
Based in Monterrey, VivaAerobus has carried 1.3 million people since it began flying 12 months ago. It is one of a handful of low-cost entrants to a market that was previously dominated by two state-owned airlines.
More than 30 million Mexicans take domestic flights each year. Mexico is the second-biggest aviation market in Latin America after Brazil yet just 4 per cent of its 100 million-plus population used an airline in 2006.
Most Mexicans prefer to travel by bus, a much cheaper mode of transport. VivaAerobus hopes its low fares will encourage the locals to change their habits.
"The opportunity in Mexico is enormous," Mr Szucs told an airline conference in Monterrey this week. "This is about getting your costs low enough to stimulate demand."
VivaAerobus plans to add six planes to its fleet and to launch its first international flight in March, from its hub in Monterrey to Austin, Texas. Mr Szucs said the business plan involves adding 10 aircraft to the fleet each year. It would also like to add a second hub in Mexico and fly to California, too.
Its average fare is $55 on domestic flights to Chihuahua and Ciudad Juarez. However airport charges are a concern and account for some 30 per cent of costs. "There is going to be pressure on the operating companies because they are making extraordinary margins," Mr Szucs was quoted on Bloomberg as saying.
It's not quite the fighting talk that Michael O'Leary might employ but perhaps Tony Ryan would be proud nonetheless.
