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FAA downgrade cost Mexican airlines $1 billion
Mexican airlines have taken a $1 billion hit due to the US air safety rating downgrade two years ago.
The US Federal Aviation Administration downgraded Mexico to a Category 2 in May 2021.
The FAA said it wasn’t fully meeting international standards compliance.
“It was a huge loss,” said Diana Olivares, Mexico’s air transportation chamber chief.
Olivares is also LATAM Airlines’ country manager.
The downgrade meant Mexican airlines couldn’t add new routes to the US.
It also stopped some new alliances and partnerships.
Aeromexico said it was unable to fly new aircraft to the US as they couldn’t get certification.
Olivares said the downgrade has also seen Mexican airlines lose market share at the expense of foreign airlines which have been able to expand capacity.
Still, Aeromexico’s CEO expects the FAA to reinstate the Category 1 rating by the end of next month.
“We expect that to change next month. Our authorities have been working very hard,” Andres Conesa said.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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