Mexican carrier Volaris banking on Mexico regaining Category 1 rating by 2023 (updated)

Controladora Vuela Compania de Aviacion SAB de CV

25/10/2022 16:01

(Updates with additional information)
       MEXICO CITY, Oct 25 (Reuters) - Mexican airline Volaris
is planning its budget on the expectation the country will
regain its Category 1 aviation rating by the second half of
2023, its finance chief said Tuesday.
    "We are budgeting for the second half of next year, and we
are closely monitoring that," said Chief Financial Officer Jaime
Pou in a call with investors.
        President Andres Manuel Lopez Obrador told a morning
news conference that Mexican authorities will travel to the
United States this weekend to discuss regaining the rating.
  
    Recovering the U.S. rating, which Mexico lost over a year
ago, is necessary for Mexican airlines to launch new routes to
the United States.   
    "They're working on required changes to the aviation
regulations, they're working on mechanisms for financing the
expenses that they need to spend for getting the category back,"
said Volaris Chief Executive Enrique Beltranena.
        Beltranena said things were now "moving along much
better" than in previous months following recent shake-ups in
Mexico's transportation ministry, which included replacing the
head of the country's aviation authority.
  
 (Reporting by Kylie Madry, Editing by Sarah Morland)
 ((Kylie.Madry@thomsonreuters.com;))