Mexico’s Huge Potential After Category 1 Recertification |

Mexico became, in 2023, the largest Latin American aviation market, surpassing Brazil for the first time in history. Additionally, the North American country has an incredible opportunity to keep growing strongly once the Federal Aviation Administration (FAA) publishes the latest IASA audit results and possibly restores Mexico’s Category 1 status. Huge potential for the country after the possible recertification On Tuesday, the International Air Transport Association (IATA) held the first day of the Wings of Change Americas event in Mexico City. During this event, the Latin American airline industry gathered to discuss the latest trends and needs in the region. In the case of Mexico, regaining Category 1 status remains the top priority for the airline industry and regulator. Fortunately, the process is reportedly closing in on a successful ending. Mexico was first downgraded to Category 2 status in May 2021. The downgrade caused a setback for Mexican airlines, as they are unable to launch new routes to the United States, expand their existing codeshare agreements, and use newly received aircraft in services to this country, among other restrictions. The government has been slow to address the multiple issues found by the FAA regulators. [caption id="attachment_75090" align="alignnone" width="580"] Photo: SICT.[/caption] But now everything seems to be back on track. While speaking at the opening conference during the Wings of Change Americas event, Jorge Nuño Lara, Mexico’s Infrastructure, Communications, and Transportations Secretary, said, “The airline industry is a priority for the (Mexican) State. On June 2, the FAA concluded its IASA audit. The Civil Aviation Federal Agency (AFAC) was tested in subjects such as security, airworthiness, legislation, human procedures, and more, and it delivered more than satisfactory results. This was the first IASA audit in which the surveyed had a 100% positive result.” Mexico remains in Category 2 at the moment. The country is waiting for the FAA to publish its final results. Industry experts believe Mexico could regain Category 1 status within the next three months. What’s next after that? Unlike other countries globally, Mexico has already recovered its pre-pandemic traffic levels. It is even beyond that, growing and posting higher passenger and cargo numbers compared to 2019. This strong recovery has taken place even when the country remains downgraded to Category 2 status. The Mexico-US aviation market has been dynamic, strong, and resourceful, becoming the largest international market globally. Industry experts, such as IATA’s regional vice-president Peter Cerdá, believe that the possibility for growth after Category 1 recertification is there. Mexican airlines have many routes waiting to be launched. The partnerships of Delta-Aeromexico and Volaris-Frontier could see more improvements. Viva Aerobus and Allegiant Air Joint Venture Agreement could be approved, which could see a new partnership launched in this very dynamic market and could lead to Allegiant’s entrance to the Mexican market by 2025. From an industry perspective, once Mexico regains Category 1 status, the spotlight will be on the lingering infrastructure issues across the country (particularly on Mexico City International Airport). Other topics that need to be addressed jointly by the industry and the authorities include taxes and fees, legislation, and the development of the correct framework to allow the development of sustainable aviation fuels in the country. Mexico –as Latin America as a whole– has enormous potential in terms of SAF but lacks everything (from legislation to infrastructure) to cater this potential growth. It has to be addressed.

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