Mexico´s Low-Cost Carriers Poised for Battle

Low-cost airline competition is heating up in Mexico. A new carrier, Volaris, is scheduled to take wing this month, operating domestic flights from a base at Toluca, capital of the state of Mexico. Initial destinations will include Guadalajara, Monterrey and Tijuana, which is near the border with the U.S.

The airline is a joint venture between a bank and an investment fund, both Mexican, and Televisa and Taca, respectively a Latin American broadcasting company and an airline.

Last summer it placed firm orders for 16 Airbus A319 jets with options to take 40 more aircraft in the A320 family.

Two budget airlines, Click and Interjet, are already operating in Mexico and the Brazilian low-cost carrier GOL is expected to launch another service there this year.