Needs Planes To Fight Off Low-Cost Operators

If we don't grow now... there may not be the chance to grow later. That's the message Adolfo Crespo, vice president of public affairs for Grupo Mexicana de Aviacion SA, had in telling reporters the second-largest Mexican airline is considering a big order from Airbus SAS.

Bloomberg News reports Crespo said the airline could buy as many as 40 planes from the European planemaker, many of which would be narrowbody A318, A319, and A320 aircraft for the airline to use to compete against low-fare start-up carriers. Mexicana already operates 55 aircraft in the A320 family.

While it's unlikely Airbus rival Boeing will see any sales for its 737 to Mexicana, the American manufacturer does remain in the running for a four-plane widebody order, which the airline would use to double its service to Argentina and even add a route to China. Choices are Boeing's 777, or Airbus' A340.

As with many potential orders from today's airlines, however, both orders hinge on Mexicana's pilots, flight attendants and ground staff accepting cuts to their benefits during annual collective bargaining talks set to wrap up October 30.

"If we don't achieve the productivity levels we need, there will be no expansion," Crespo said.

An Airbus spokeswoman refused to comment... saying it is company policy to keep quiet about potential airliner orders.

FMI: www.airbus.com, www.mexicana.com, www.boeing.com