ALTA Collaborates with Mexico on Safety, Jet Fuel Energy Reform and Infrastructure Development

Miami, Florida (February 6, 2018) - ALTA (the Latin American and Caribbean Air Transport Association) is continuing its collaborative efforts with Mexico, focused on aviation safety, jet fuel energy reform, and infrastructure development.

"ALTA is continuing to work hand-in-hand together with Mexico as we even further grow the benefits of aviation for the country of Mexico and its people," said ALTA's Executive Director Luis Felipe de Oliveira. "As an association that works for the benefit of the entire air transport industry, ALTA continues supporting government entities in order to further grow the benefits of aviation for the country of Mexico and its people. We are pleased that Mexico is very focused on opening its market and competing efficiently on improving the country's safety and infrastructure and reducing operating costs for airlines."

Jet Fuel Energy Reform

As a result of today's infrastructure in Mexico and how it calculates its prices, the price of jet fuel in Mexico is one of the most expensive countries in the region, particularly in its hub Mexico City. Aviation fuel represents the highest operational cost for airlines, accounting for approximately 22 percent of an airline's total operating costs. "In the medium and long term, a change in the commercialization and import structure of jet fuel would generate positive returns that would encourage airlines to contribute even more to the country and stakeholders served by the industry with a high possibility of surpassing the three percent that it currently contributes to Mexico's gross domestic product," says Oliveira.

Infrastructure Development

Infrastructure is another key challenge that ALTA is working in collaboration with Mexico to address. "The new airport in Mexico City is fundamental for the development of the country, as well as the continuity of current airport operations that will serve the industry for many years to come," adds Oliveira. "Costs must be well managed in order for the development of the air transport industry to fully achieve its main objective of generating economic activity and contributing to the growth of Mexico as a country, which benefits its entire population."

In order to address these issues, ALTA recently participated in a series of meetings with multiple Mexican government authorities, and its member airlines in Mexico, including Aeromar, Aeromexico and Volaris, as well as the International Civil Aviation Organization - North American, Central American and Caribbean Office (ICAO NACC).

Meeting with DGAC of Mexico

ALTA's Executive Director Luis Felipe de Oliveira met with Mexico's Director General of Civil Aviation (DGAC - Dirección General de Aeronáutica Civil) on January 26, 2018, including the DGAC of Mexico's Director General Miguel Pelaez, Deputy Director of Transport and Aeronautical Control Rafael Garcia Gijón, Deputy General Director of Air Safety Ing. Jorge Romero Garcia, Technical Deputy Director General Lic. Alejandro Lozano Botello, and Deputy Director General of Aviation Pablo Carranza Plata.

"We are very happy with the developments in Mexico and commend them for adopting IATA's Operational Safety Audit (IOSA) and Standard Safety Assessment (ISSA) as prerequisites for an airline to fly in Mexico," said ALTA's Executive Director Luis Felipe de Oliveira. "Mexico's DGAC is a positive example of aviation safety and security for the Latin America and Caribbean region, and it is an important step to have one of the largest economies in the region committed to safety, as well IATA Safety Audit for Ground Operations (ISAGO) for ground handling."

Meeting with Mexico's Energy Regulatory Commission

ALTA's Executive Director Luis Felipe de Oliveira met with Mexico's Energy Regulatory Commission (CRE - Comisión Reguladora de Energía) on January 25, 2018, including the head of CRE's petroleum unit Anasol Muñoz, as well as CANAERO (Camara Nacional de Aerotransportes), and national and international airlines operating in Mexico. The meeting was an important step between the CRE and the air transport industry and underscored the positive impact for both passengers and the development of Mexico's airline industry that is achievable through joint work and collaborative efforts. ALTA commended the positive impact that Mexico's energy regulation implementation will have on the industry, improving the competitiveness on the jet fuel supply chain into the country.

Meeting with ICAO

ALTA's Executive Director Luis Felipe de Oliveira met with ICAO's Regional Director Melvin Cintron on January 25, 2018, to discuss ALTA member participation in safety and security initiatives that are being implemented in the region, as well as the cooperation between the entities on the efforts to have a regulatory harmonization in the region and beyond.

In its mission that "no country is left behind," ICAO has established a work strategy with the 21 countries of the Latin America and Caribbean region to implement standards and methods recommended by the agency in order to ensure the sustainable and safe development of the air transport industry. During the meeting, Cintron stressed the importance of well defining objectives and specific tactical initiatives on advancing the region's safety and security.

Meeting with SENER

ALTA's Executive Director Luis Felipe de Oliveira and Fuel and Airport Charges Manager Alvaro Godoy met with Mexico's Energy Secretary (SENER - la Secretaría de Energía) on January 26, 2018, including Deputy Secretary of Hydrocarbons Aldo Flores-Quiroga, and the Head of Industrial Transformation Policies Rosanety Barrios to discuss challenges facing Mexican energy reform and the implications this has for the airline industry. SENER shares ALTA's and the air transport industry's vision of reform in terms of safe, quality service, competition and transparency, and how this contributes to the development of Mexico's aviation industry in order to contribute to the Mexican Economy.

Meeting with ASA

ALTA's Executive Director Luis Felipe de Oliveira and Fuel and Airport Charges Manager Alvaro Godoy met with Aeropuetos y Servicios Auxiliares (ASA) on January 26, 2018, including Director General Alfonso Sarabia, Business Unit Coordinator Jorge Nevarez, and Fuels Director Mauricio Arellano to discuss the future of fuel facilities following the construction of Mexico City's new international airport and the effects for ASA after the implementation of Mexico's energy reform of Mexico led by the CRE. Factors such as infrastructure of the new fuel farm, the availability of hydrants, and the service provided by ASA were among topics discussed. ASA plays a key role on the entire energy reform and the transition to the new open access approach will have a huge impact on jet fuel distribution in the country.