N.M. flights to Mexico being changed: Frontier Airlines' flight to Puerto
Vallarta ending June 14; deal with AeroMexico in the works
May 13, 2008
New Mexicans might soon be able to take airline flights directly from
Albuquerque to Ciudad Chihuahua, Mexico, but the regular flights to Puerto
Vallarta that began late last year will end in a month.
Gov. Bill Richardson recently traveled to Mexico to negotiate an AeroMexico link
between Albuquerque and Chihuahua that could begin as soon as August.
"They reached an agreement. However, there's still all the details to be worked
out," Sunport spokesman Daniel Jiron in Albuquerque said Friday. "There's a lot
of unknowns at this point as to what kind counter space, gate space. ... They
still have to deal with all the customs issues and all that kind of stuff, so
there's nothing concrete."
Mexico City-based AeroMexico would use Brazilian-made Embraer jets that hold 50
passengers -- similar to the 76-passenger Embraers used by Frontier Airline for
service to Puerto Vallarta.
Frontier began flying three days a week to the Pacific resort town in December
-- the Albuquerque International Sunport's first regularly scheduled
international flight in 15 years.
But Frontier spokesman Steve Snyder said Friday that high fuel costs and the
Denver-based firm's pending bankruptcy means it will cease the Puerto Vallarta
flight June 14.
The cancellation has more to do with the cost of jet fuel than Frontier's filing
for Chapter 11 reorganization under bankruptcy laws, he said.
"When we started this service back in December, oil was at $90 a barrel," Snyder
said. On Friday, the price of oil rose to $126.20 on the New York Mercantile
Exchange before settling at a record $125.96. "Every dollar a barrel of fuel
adds $5 million to our bottom line annually, and with the environment we're
operating in right now, it's difficult to be patient with routes like we used to
be."
Jiron said the city of Albuquerque had a risk-sharing agreement with Frontier --
a commonplace arrangement when a city seeks to encourage a route. Although the
route has been successful and carries more than enough passengers to meet the
terms of the agreement, he said, the higher fuel costs might mean a liability
for Albuquerque.
"We haven't paid them anything, but there may be some bills forthcoming simply
because of fuel prices," he said.
Source: The Santa Fe New Mexican
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