Tuesday, February 3, 2015

Volaris focused on VFR, Mexican diaspora markets

Volaris A320-232 (c/n 5988) XA-VLB "Stephany" arrives at Los Angeles International Airport (LAX/KLAX) on January 24, 2015.
(Photo by Michael Carter)

Mexican low-cost carrier (LCC) Volaris is “very focused” on the visiting friends and family (VFR) market, although it will not “say no” to more business traffic, Manuel Ambriz Lopez, manager of commercial strategy and network planning, said in an interview at the Routes Americas conference in Denver, Colorado.

One potential business market the carrier is considering is Mexico City-Lima, Peru, Lopez said. Volaris currently has no routes to South America, but it is “actively exploring” routes to the south.

“This route would serve the local Mexico City market, and would be more business but some leisure,” Lopez said. He gave no timeline for when Volaris may launch the route.

Other business markets that have emerged are routes to Zacatecas and Aguascalientes, two centers of the Mexican automobile industry. The carrier is seeing increased traffic from Chinese business travelers connecting to these cities after arriving in North American through a US West Coast gateway city.

Volaris also is seeing increasing traffic from Korean, Chinese and Japanese nationals between Los Angeles and Mexican beach destinations.

But the carriers’ international route focus is on the VFR market, targeting cities with large Mexican-heritage populations. Besides the expected cities in California and the Southwest and Texas, these include what Lopez called “non-traditional” Mexican diaspora populations in the Southeast and Midwest.

These cities, yet unnamed, are a potential source of growth for Volaris. Mexican communities tend to be comprised of newer immigrants with close ties to Mexico than second- and third-generation ethnic Mexican populations in the more “traditional” diaspora markets, Lopez said.

Canada remains a potential market, but the Mexican population in that country remains “miniscule,” Lopez said. The largest diaspora population is in Vancouver, but this community is small compared with the larger communities in the US. The carrier has no concrete plans to serve that city.

Volaris intends to raise capacity 12%-13% this year as it takes delivery of five Airbus A320s and two A321s. One A320 and one A319 will come off lease and be returned to the lessor. The carrier’s fleet comprises 32 A320s and 18 A319s.

(Madhu Unnikrishnan - ATWOnline News)

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