{"id":3115,"date":"2020-12-10T19:38:36","date_gmt":"2020-12-11T01:38:36","guid":{"rendered":"http:\/\/accesstomexico.mx\/blog\/?p=3115"},"modified":"2020-12-13T19:40:58","modified_gmt":"2020-12-14T01:40:58","slug":"mexicos-volaris-mounts-new-offensive-as-rival-airlines-struggle","status":"publish","type":"post","link":"https:\/\/accesstomexico.mx\/blog\/mexicos-volaris-mounts-new-offensive-as-rival-airlines-struggle\/","title":{"rendered":"Mexico\u2019s Volaris Mounts New Offensive as Rival Airlines Struggle."},"content":{"rendered":"\n
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BLOOMBERG.<\/a><\/p>\n\n\n\n

Mexico\u2019s biggest airline plans to use proceeds from a $173 million stock sale to pounce on struggling rivals as it rebounds from an unprecedented travel collapse.<\/p>\n\n\n\n

Volaris is restoring seating capacity this month to 100% of last year\u2019s levels and targeting a return to profitability by the second quarter of 2021, said Chief Executive Officer Enrique Beltranena. The carrier has also identified a dozen or so Mexican destinations and almost twice as many abroad where it will invest in grabbing market share as demand returns and Covid-19 vaccines take hold.<\/p>\n\n\n\n

\u201cThis was an offensive move,\u201d Beltranena said of the share offering. \u201cThere was also a market effect from vaccine news, and a weakened dollar means we\u2019ll be able to maximize those pesos.\u201d<\/p>\n\n\n\n

The moves herald Volaris\u2019s return to the attack after the coronavirus pandemic gutted travel demand. Unlike their U.S. counterparts, Mexican airlines didn\u2019t receive any government aid. But Volaris slashed fares 30% to coax people onto planes and benefited from a route network geared to the leisure market. That contrasted with the fate of Grupo Aeromexico SAB, which filed for Chapter 11 bankruptcy as its business-travel markets evaporated.<\/p>\n\n\n\n

Equity Window<\/h3>\n\n\n\n

Controladora Vuela Cia. de Aviacion SAB, as Volaris is officially known, had expected to raise cash over the next 12 months. But a recovery in its share price and the outlook for vaccines opened a window for a U.S. equity offering now, Beltranena said.<\/p>\n\n\n\n

The $173 million in proceeds works out to 3.4 billion pesos — roughly in line with the goal of raising 3.5 billion pesos that the company announced in September. The offering price of $11.25 per American depositary receipt represented a 6.25% discount to the previous day\u2019s close. Morgan Stanley, Evercore ISI, Banco Santander SA, Citigroup Inc. and Bank of America Corp. managed the deal.<\/p>\n\n\n\n

While Volaris\u2019s shares took a hit after the stock offering, the company\u2019s ADRs were still up 9.4% this year through Wednesday. That\u2019s the sharpest share gain in the Americas for a carrier with a market value of at least $500 million, according to data compiled by Bloomberg.<\/p>\n\n\n\n

The ADRs advanced 2.5% to $11.69 at 10:56 a.m in New York.<\/p>\n\n\n\n

Mapping Recovery<\/h3>\n\n\n\n

Volaris has a six-step road map that, in addition to restoring capacity and returning to profitability, calls for grabbing what struggling competitors have left behind, Beltranena said.<\/p>\n\n\n\n

While Aeromexico works its way through Chapter 11, another Mexican rival, Interjet, is only flying four planes after its others aircraft were repossessed.<\/p>\n\n\n\n

In addition to encroaching on more markets in Mexico and the U.S., Volaris will also focus next year on increasing flights in Central America. Avianca Holdings SA, a Colombian competitor active in the region, also filed for bankruptcy under Chapter 11. earlier this year.<\/p>\n\n\n\n

\u201cWe\u2019re in a solid position to start this process and move forward,\u201d Beltranena said. \u201cWe\u2019re a great business case.\u201d<\/p>\n\n\n\n

Andrea Navarro. (2020). Mexico\u2019s Volaris Mounts New Offensive as Rival Airlines Struggle. USA. BLOOMBERG. Recuperado de <\/strong><\/p>\n\n\n\n

https:\/\/www.bloomberg.com\/news\/articles\/2020-12-10\/mexico-s-volaris-mounts-new-offensive-as-rival-airlines-struggle<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

BLOOMBERG. Mexico\u2019s biggest airline plans to use proceeds from a $173 million stock sale to pounce on struggling rivals as it rebounds from an unprecedented travel collapse. Volaris is restoring seating capacity this month to 100% of last year\u2019s levels […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3115","post","type-post","status-publish","format-standard","hentry","category-uncategorized","clearfix"],"_links":{"self":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/comments?post=3115"}],"version-history":[{"count":1,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3115\/revisions"}],"predecessor-version":[{"id":3117,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3115\/revisions\/3117"}],"wp:attachment":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/media?parent=3115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/categories?post=3115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/tags?post=3115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}