Mexico?s domestic air market is driving up capacity on Latin American flights, according to OAG.
In a new report for September, aviation intelligence firm OAG spotlights a rise in air capacity in Central America and Upper South America.
Central America, for instance, is set to gain 15% in capacity this September, or an extra 520,000 seats from the same month in 2012.
Yet almost all Central America?s growth stems from?Mexico, said OAG?s executive VP, John Grant.
“The domestic market in Mexico has recovered well from the demise of Mexicana and is undergoing a battle for domestic market share between Aeromexico and Mexico?s three low cost carriers (LCCs) ? Interjet, Volaris and VivaAerobus,” he said.
Benito Juarez Airport, Mexico?s main hub, is the focus of the expansion, adding 315,000 domestic seats on last September, adds OAG.
Low-cost carriers (LLCs) are also grabbing a bigger slice of Mexico?s air market, with 59% of capacity this September, by taking over routes once operated by Mexicana.
OAG sees scope for LLCs ? already significant in Mexico and?Brazil?? to raise traffic in countries such as Argentina, but they must overcome a protectionist government stance.
The merger between Chile?s LAN and Brazil?s TAM into?LATAM?last year, and their decision to be part ofoneworld, is also having a clear impact, said Grant.