How would you sum up 2018, in France and globally?
Paul Verhagen - We set new records! In particular, we transported 200 000 passengers between Paris and MexicoThis represents an increase of around 10% on the previous year. The occupancy rate remained stable at around 85%. 2018 was also a record year worldwide. We were very close to crossing the 22 million passengersas we passed the symbolic 20 million mark for the first time the previous year. We carried around 21.9 million passengers, with a load factor of 80%, the same as in 2017. Not only is there strong point-to-point demand, but also for journeys in connection via Mexico Citywhich, thanks to its strategic position, is a natural stopover between the west coast of the United States and South America. Especially as we strengthened our global network last year, with five new international destinations.
However, the Aeromexico advert that has been causing a buzz over the last few days might suggest that American travellers are not sufficiently receptive to Mexico's charms...
P. V. - This advert is already a few months old, and it's strange that it's now being talked about on this side of the Atlantic... Of course, the main aim of this campaign wasn't really to generate traffic, but above all to take a stand on what's happening internationally, to express Aeromexico's position, which goes beyond the purely commercial aspect.
Two years after the American elections, can we talk about the "Donald Trump effect"?
P. V. - There was an initial impact, but this was mainly due to changes in the exchange rate, which made travelling to the United States more expensive for Mexicans. At the same time, second- and third-generation Mexicans living in the United States may have been reluctant to visit their families in Mexico, as there were rumours that their return to the United States could be complicated. This is obviously not the case, as they are legal residents, and this has since stopped. Rather than a "Trump effect", we have seen an effect linked to the "open skyThis led to a sharp increase in air supply, which in my opinion was too great because it put pressure on fares. But the relationship between supply and demand is now more balanced on this Mexico-US route.
What are your priorities for 2019?
P. V. - We will be more cautious This is the case for the overall development of the network. Growth in the number of seats will be limited to 1%. We will readjust this roadmap this summer if necessary. Over the last five years, we have posted double-digit growth rates: we now need to consolidate We also need to take account of the economic context, particularly in the Mexican market, where we prefer to take our responsibilities seriously by not proposing over-aggressive growth, but instead opting for profitable, well-considered growth. Conversely, when we identify growth opportunities, we exploit them. The France is a very good example of this.
Precisely what is your flight plan for the French market?
Paul Verhagen - Last year, we exceeded the daily frequency, with up to nine flights a week depending on the time of year. We're going to continue on this path: during the summer season, i.e. between June and Septemberwe will reach up to 13 weekly flights. Two flights a day will therefore be offered, with the exception of Thursday from Paris. By offering two timetables a day, we will be broadening the range of connections available to French travellers. This will mean a total of 35% of additional capacity over the year.
Within the next two to three years, we will be offering two daily flights to Paris and three daily flights to Madrid.
When do you expect to be able to offer two daily flights to Paris all year round?
P. V. - Within two to three years at the most, we'll be offering two flights a day to Paris, and three a day to Madrid. But we hope to get there before then! In fact, if you take into account the code-share flight with Air France, we already offer three flights a day to Paris. Filling aircraft in high season is fairly straightforward. The real challenge is to fill two aircraft a day, every day during the winter. That's why we're focusing in particular on business travellers, not only to Mexico City but also to the other business destinations we serve from our hub in Mexico and beyond.
Will Aeromexico's fleet change this year?
P. V. - Our intercontinental fleet is set to grow: a new aircraft will arrive in April, and another in December, to from 17 to 19 Dreamliners this year. This means that we will be able to expand our offer. We will do this by increasing frequencies to destinations already served. At the same time, deliveries of Boeing 737 Max aircraft began last year. The sixth aircraft arrives at the end of January. We have 16 firm orders and 30 options. The aircraft will arrive between now and 2021, enabling us to rejuvenate our medium-haul fleet and expand our network. In summer 2019, we will also receive our first Max 9, with a larger capacity, which will fly to the West Coast.
How are your relations with your partners Air France and Delta developing?
P. V. - We have an excellent relationship. We share a lot with Delta, with whom for a year and a half now the relationship has been not just commercial but also capital. Our relationships with our other Skyteam partners are more traditional, with code-sharing and frequent flyer programmes. But I think our relationships will go further in terms of joint ventures.
Alliances seem to be losing ground. Is this the beginning of the end?
Paul Verhagen - No, I don't think it will go on until the end of the alliances. It is true that relations between member airlines are changing, and that more and more airlines are acquiring stakes in other carriers. What we could see in the future, not only at Skyteam but probably also at Oneworld and Star AllianceThe Skyteam alliance is a hard core of airlines that are forging increasingly important links because they also have common financial interests, and second-level relationships with the other member airlines. At Skyteam, this hard core is made up of Air France KLM, Delta, Aeromexico... And there are airlines like Virgin Atlantic, which are not part of the alliance, but with which we maintain privileged relations through the financial link between Virgin and Delta.
What about Aeroflot, with whom you recently signed a new partnership?
P. V. - This is a more traditional code-share relationship, but it is a good example of extending the network through code-share agreements. The Russian market has a lot of potential.
Is the offer for business customers changing?
P. V. - We have renewed our menu on board the business cabins on the Mexico-Europe route. We are working with a renowned Mexican chef, and have extended the choice from three to four menus, which change each season. It is also now possible to pre-book your menu online. At the same time, we have renovated and extended our lounges at Mexico City airport. We are also investing heavily in the recognition of our frequent travellers, to ensure that they are always given priority. And we want to develop the chauffeur service between the city centre and the airport offered to business passengers, and available in Paris via a partnership with Le Cab. This service is much appreciated by companies, as it limits the hidden costs of taxi transfers.
How are services to Amsterdam faring?
P. V. - We have launched this Mexico-Amsterdam almost three years ago, in May 2016. We switched to daily flights after a year, much faster than planned. We'd like to offer ten flights a week, perhaps next year, but we're not yet ready. Schiphol airport is saturated. So there is no opportunity for growth in the short term. We're going to have to wait for slots to become available, because the equipment we're using already offers maximum capacity.
The Mexico City hub is also a victim of its own success: where are we with the plans for a new airport?
Paul Verhagen - There was indeed a project... The construction of the new airport had even begun around four years ago. But one of the first decisions taken by the new government was to stop the project, a third of whose construction had already taken place, in order to focus on other areas of investment. At present, the situation is somewhat confused. The current Mexico City hub is saturatedand can no longer develop. So everyone agrees that we need to find ways of increasing capacity. But opinions differ as to the most effective solutions. The airline industry is calling for the creation of a single hub to connect Mexico to the rest of the world, and vice versa. The government, on the other hand, would like to spread traffic over three airports, using the Toluca hub and transforming the military airport at Santa Lucía into a civilian hub. From a logistical point of view, this is a real nightmare for an airline... We are waiting to see what the final decision will be.
