Mexicana hopes to place an order next year for either Airbus A350s or Boeing 787s as long-haul fleet replacements, and the carrier is also already looking at options to replace its new Boeing 717 fleet once leases expire.

Group CEO Manuel Borja said Mexicana will probably need a half-dozen A350s or 787s, and is in discussions with both manufacturers. These will eventually replace the four 767 -200s and -300s and the two A330-300s that the airline leases for its long-haul routes. These include the transatlantic flights it added this year to Madrid and London Gatwick, as well as Buenos Aires and Sao Paulo.

Before it can make a long-term replacement decision, Mexicana will have to arrange temporary replacements for the 767-300s, since their leases expire at the end of next year. The carrier will probably opt for -200s or A330-300s, Borja said.

The carrier is in the process of taking delivery of 25 717s, which it will use to replace Fokker 100s in its MexicanaClick subsidiary. The leases are through Boeing Capital Corp., and the aircraft were formerly operated by Midwest. So far Mexicana has taken delivery of 11, with another arriving by yearend and 13 in 2010. The carrier could potentially add another 5-10 of the 717s, Borja said.

While the 717s are "a very good solution" for Mexicana until their leases expire in seven-to-eight years, the airline will look at other long-term options for its 100-seat jet fleet, said Borja. It is interested in Bombardier's CSeries, and is in discussions with the manufacturer. However, if Mexico's domestic market develops sufficiently, Mexicana may also opt for a next-generation narrowbody from Boeing or Airbus to replace the 717s.

The other aircraft entering the carrier's fleet are Bombardier CRJ200s, which are flown by the MexicanaLink subsidiary. It will have 15 by December, and another five will be delivered next year. These will mainly operate routes out of Guadalajara and the new hub Mexicana is establishing in Cancun.

The backbone of Mexicana's mainline fleet are the 55 A320 family aircraft which it uses for short- and medium-haul international routes. This fleet is about right size for the near future, said Borja. Mexicana's mainline fleet is mostly leased, and it only owns 10 A320s. Borja believes the airline should raise the ratio of owned aircraft significantly.

Mexicana is currently a privately-owned carrier, but it does intend to initiate a public share offering in the future, Borja said. However, he stresses the carrier will need to return to solid profitability before it goes to the financial markets.

While Mexicana doesn't release detailed figures, Borja said it will be in the red this year, after essentially breaking even in 2008. Revenue will be about flat this year, even though capacity has increased. Domestic yields have improved year-on-year, although international yields are down in the 10%-15% range.

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