Interjet
Interjet was a Mexican low-cost carrier founded on March 5, 2005, by the Alemán family and headquartered in Mexico City, operating scheduled domestic and international passenger flights from hubs including Mexico City International Airport until ceasing operations on December 10, 2020, due to mounting financial liabilities exceeding $1.25 billion, fleet repossessions, and operational disruptions.[1][2][3] The airline commenced services on December 1, 2005, initially from Toluca International Airport with a fleet of Airbus A320s, quickly expanding to over 80 destinations across Mexico, the United States, Canada, and other American countries by 2019, transporting millions of passengers and briefly ranking as Mexico's second-largest carrier after the 2010 demise of Mexicana de Aviación.[1][4][2] Interjet differentiated itself with low fares augmented by full-service elements like complimentary meals and entertainment, while growing its fleet to 96 aircraft, including 53 Airbus A320-200s, newer A320neo and A321 variants, and 22 Sukhoi Superjet 100s acquired in a $650 million deal in 2011; however, maintenance challenges with the Russian jets, exacerbated by spare parts shortages, contributed to grounded aircraft and escalating costs.[1][2][5] Profitable in select years such as 2013, 2015, and 2016, the carrier nonetheless accrued debts from halting tax payments in 2013, recording losses of 4.16 billion pesos from 2017 to early 2019, and facing creditor actions including aircraft seizures by lessors even before the COVID-19 pandemic intensified cash flow crises like unpaid fuel and wages.[1][6] Employee strikes over back pay, lawsuits against former executives, and a 2022 court order for $7.23 million in a class-action suit underscored labor and governance controversies, culminating in formal bankruptcy declaration in 2023 and asset liquidation to address obligations to workers and the government, including $1.5 billion in unpaid taxes.[1][7][3]History
Foundation and Launch (2005–2007)
Interjet was established in 2005 by members of the Alemán family, including Miguel Alemán Velasco as founding chairman and his son Miguel Alemán Magnani as initial president and CEO, under the auspices of the Alemán Group holding company.[1][8] The venture aimed to introduce a low-cost carrier model to Mexico's aviation market, positioning itself as an efficient challenger to legacy airlines such as Aeroméxico and Mexicana de Aviación, which dominated domestic routes with higher fares and hub-and-spoke systems.[9][10] Backed by the family's private investments and business interests, Interjet emphasized operational simplicity, including direct leasing of aircraft and streamlined services, to capture growing demand from price-sensitive travelers in a market undergoing liberalization since the early 1990s.[8][9] Following two years of preparation, Interjet secured necessary regulatory approvals from Mexico's Secretaría de Comunicaciones y Transportes (SCT) for commercial operations, enabling it to enter as one of the first standalone low-cost carriers in the country after Volaris.[9] The airline focused on point-to-point domestic routes, initially basing operations at Toluca International Airport (near Mexico City) to leverage lower costs compared to congested hubs like Mexico City International Airport.[11] This strategy targeted underserved medium-haul markets within Mexico, such as connections from central Mexico to tourist and business centers, avoiding the inefficiencies of connecting flights prevalent among incumbents. Commercial service commenced on December 1, 2005, with a single leased Airbus A320 aircraft, marking Interjet's entry into scheduled passenger operations.[1][12] Early flights prioritized high-demand domestic corridors, building a network centered on Toluca while gradually expanding to key cities like Guadalajara, Monterrey, and Cancún, with an emphasis on frequent, affordable service to stimulate traffic growth.[11] By 2007, the airline had established a foothold in Mexico's burgeoning low-cost segment, carrying passengers on these routes amid a surge in domestic air travel that saw six new discount carriers launch since 2005.[13]Early Expansion and Domestic Focus (2008–2012)
Following the initial launch phase, Interjet accelerated its domestic route network expansion, adding multiple short-haul destinations to capitalize on growing demand for affordable intra-Mexico travel. By 2008, the airline operated 14 routes from its secondary hub at Toluca International Airport, focusing on high-frequency services to regional cities such as Guadalajara, Monterrey, and Cancún. This buildup continued into 2010, when Interjet introduced four new routes, bringing its total domestic destinations served from Mexico City to 20, emphasizing connectivity between the capital and secondary markets like Mérida, Veracruz, and Puerto Vallarta.[14][15] The carrier differentiated itself from pure low-cost competitors like Volaris and VivaAerobus by adopting a hybrid service model, including complimentary snacks and non-alcoholic beverages on all domestic flights, regardless of duration. This approach, combined with no-fee checked baggage up to two pieces and guaranteed personal space (by not selling middle seats in economy), appealed to price-sensitive passengers seeking added value without premium fares. High-frequency operations on key short-haul corridors, such as Mexico City to Tijuana and Mexico City to Guadalajara, supported load factors above industry averages for low-cost carriers during this era.[16] Interjet's domestic focus yielded substantial market share gains, particularly after the 2010 bankruptcy of legacy carrier Mexicana de Aviación, which vacated significant capacity. The airline's domestic market share rose from approximately 12.7% in 2009 to 25% by 2011, reflecting consistent passenger growth driven by competitive pricing and service enhancements amid Mexico's expanding aviation sector. This period marked Interjet as the leading domestic low-cost carrier, with operations scaling to handle millions of passengers annually by 2012, fueled by economic recovery and rising middle-class travel demand.[17][18]International Growth and Sukhoi Acquisition (2013–2016)
In 2014, Interjet expanded its international network into the United States with the launch of nonstop service between Monterrey and Houston's George Bush Intercontinental Airport on October 23, operated using Airbus A320 aircraft.[19] This route marked an early step in targeting underserved cross-border markets, leveraging the carrier's hybrid low-cost model to compete with established players.[20] Further U.S. growth accelerated in 2016 amid a revised bilateral air services agreement, enabling additional frequencies and destinations; service from Mexico City to Los Angeles International Airport began on October 20, followed by routes to Chicago O'Hare on November 17 and Las Vegas on November 10, all using A320 family jets.[21][22] These additions aimed to capture demand from Mexican migrants and business travelers, with initial frequencies of up to twice daily on select paths.[20] Concurrently, Interjet pursued fleet diversification to support regional and shorter-haul international operations through a major order for Sukhoi Superjet 100 (SSJ100) aircraft. The carrier had committed to up to 30 SSJ100s in a 93-seat configuration with Pininfarina-designed interiors, with firm orders totaling 20 plus 10 options, motivated by acquisition costs approximately 20-30% lower than comparable Western regional jets like the Embraer E-Jets, alongside suitability for thin domestic and Latin American routes under 1,000 nautical miles.[23][24][25] The first aircraft (MSN 95023) was delivered at the Paris Air Show on June 17, 2013, following Mexican airworthiness certification and extended-range approvals for operations up to 2,000 nautical miles.[26][27] Entry into service occurred on September 18, 2013, initially on domestic routes from Mexico City, with progressive deliveries reaching multiple units by 2016. ![Sukhoi Superjet 100 (XA-OAA)][float-right] Early SSJ100 integration presented certification and operational hurdles, including adaptations for Mexican regulatory standards and initial teething issues common to new-type entries, such as software validations and engine familiarization for the PowerJet SaM146 turbofans.[28][29] By mid-2016, however, the fleet leader had accumulated over 2,400 flight hours and 2,300 cycles, demonstrating viability for high-utilization schedules despite reliance on specialized Russian-Italian maintenance support.[29] Interjet deployed the type primarily on medium-density routes to Central America and secondary Mexican cities, achieving load factors above 80% in initial years, though supply chain dependencies foreshadowed future challenges.[30] This acquisition represented a strategic bet on cost-efficient diversification amid growing international ambitions, positioning Interjet as the SSJ100's primary non-Russian launch customer.[26]Peak Operations and Emerging Pressures (2017–2019)
By 2019, Interjet operated a fleet of 67 aircraft, primarily consisting of Airbus A320 family jets supplemented by Sukhoi Superjet 100s, which supported connectivity to over 80 destinations across Mexico, the United States, Canada, and Latin American countries.[31][1] The carrier transported more than 15 million passengers that year, reflecting peak annual traffic with a 9.4% overall increase from 2018, including record 25.9% growth in international passengers.[32][33] This expansion included the addition of seven new international routes and four domestic ones, alongside deliveries of six new Airbus aircraft to enhance capacity.[33] Interjet reinforced its market position through targeted marketing that emphasized operational reliability, particularly punctuality, to differentiate from rivals and appeal to time-sensitive travelers in Mexico's growing aviation sector. The airline's on-time performance claims helped cultivate a brand image of dependability amid a domestic market where it held approximately 20% of passenger share.[34] Subtle strains began to emerge as competition intensified from ultra-low-cost carriers like Volaris, which expanded aggressively and captured larger overall market segments through lower fares.[34] Operational costs also climbed, with aircraft fuel expenses rising 30% and flight equipment rentals increasing 50% between fiscal years 2017 and 2018, squeezing margins in a price-sensitive environment.[35] Compounding these pressures, in March 2019, Interjet grounded more than two-thirds of its 22 Sukhoi Superjet 100 aircraft due to widespread engine serviceability issues, reducing effective fleet utilization and foreshadowing maintenance vulnerabilities.[36]Pre-Pandemic Decline and Cancellations (2019–2020)
In 2019, Interjet encountered severe operational disruptions from the grounding of its Sukhoi Superjet 100 fleet, primarily due to chronic spare parts shortages stemming from supply chain dependencies on Russian manufacturers. By late March, 15 of the airline's 22 Superjets were sidelined, with the situation deteriorating further amid U.S. sanctions complicating imports of Western-sourced components like engines and avionics.[37] [5] These groundings forced widespread flight cancellations, including domestic and international routes, as Interjet struggled to maintain schedules with its remaining Airbus fleet; labor disputes that year exacerbated the issue by causing additional staffing shortages and further delays.[34] Passengers faced significant inconvenience, with reports of stranded travelers and route suspensions contributing to a loss of market confidence ahead of external pressures.[25] Financial strains intensified the decline, with liquidity shortfalls prompting public warnings of insolvency. In August 2019, Interjet's chief financial officer declared the airline in "technical bankruptcy" after Mexico's tax authority ordered repayment of approximately $140 million in disputed back taxes, threatening operational collapse without resolution.[38] This episode highlighted underlying cash flow vulnerabilities, including deferred payments to creditors and reduced access to credit, which curtailed fleet maintenance and expansion plans. Amid these pressures, executive turnover occurred, with CEO William Shaw departing in early 2020 as the board sought stabilization measures.[34] By mid-2020, unpaid obligations to suppliers had escalated, particularly for aviation fuel, forcing Interjet to adopt prepayment terms after exhausting credit lines—a direct consequence of accumulated debts exceeding hundreds of millions of pesos.[39] These requirements compounded cancellation risks, as fuel providers like Pemex imposed stricter controls, underscoring the airline's eroding vendor relationships and pre-existing fiscal weaknesses rather than solely external factors.[40]COVID-19 Suspension and Initial Insolvency (2020–2021)
In late 2020, the COVID-19 pandemic accelerated Interjet's pre-existing financial vulnerabilities, including chronic cash shortages that had already led to fuel credit restrictions since April and multiple brief flight halts in November.[41][42] On December 11, 2020, the airline suspended all flights indefinitely, grounding nearly its entire fleet of around 70 aircraft and stranding passengers with unfulfilled bookings, as travel demand plummeted under global restrictions while operational debts mounted.[43] CFO Erick Peña Bonola announced the operational suspension on December 17, 2020, attributing it primarily to unpaid debts exceeding operational needs, with fuel suppliers refusing credit and IATA imposing a partial billing settlement suspension earlier in April for a clearance balance default of unspecified amount.[44] This followed November cancellations that left approximately 3,000 passengers affected across 50 flights, highlighting the carrier's inability to sustain even reduced services amid pandemic-induced revenue losses of over 90% from pre-crisis levels.[45][46] Interjet pursued initial restructuring measures, including negotiations with creditors and suppliers for debt relief, but these faltered as the airline accrued three months of unpaid wages to 4,000 employees and failed to honor prior commitments to repay government-backed obligations from earlier support packages.[47] Mexican authorities, constrained by fiscal priorities during the economic downturn, did not extend emergency bailouts beyond limited prior aid, leaving the carrier in technical insolvency without viable short-term recovery paths.[47] By year-end, operations remained shuttered, marking the onset of prolonged dormancy as accumulated liabilities, estimated in hundreds of millions of dollars, overwhelmed pandemic relief efforts.[48]Bankruptcy Proceedings and Asset Auctions (2021–2023)
Interjet initiated formal bankruptcy proceedings under Mexico's concurso mercantil framework on April 28, 2021, when ABC Aerolíneas S.A. de C.V., the airline's operating entity, filed a petition with the Sixth District Court for Civil Matters in Mexico City.[49][50] The court admitted the claim that same day, suspending any seizures or foreclosures on the company's assets to facilitate potential restructuring negotiations with creditors, including lessors, suppliers, and tax authorities.[50] This step followed months of operational suspension and asset disputes, amid mounting debts estimated in the billions of pesos.[49] On August 30, 2022, a federal judge in Mexico City formally declared Interjet bankrupt, advancing the process into a 185-day conciliation phase during which payments to creditors were suspended to allow for agreement attempts.[51][52] The declaration highlighted unresolved claims from diverse creditors, including aircraft lessors who had already begun repossessing leased jets—such as Airbus A320 family planes from providers like GECAS and SMBC Aviation Capital—starting in late 2020 and accelerating through 2021.[53][3] Judicial oversight emphasized creditor priorities, with tax debts alone reaching approximately $1.5 billion USD owed to Mexican authorities.[3] Conciliation efforts failed to yield a viable restructuring agreement, prompting the Second District Court for Commercial Bankruptcy Matters to mandate liquidation proceedings in April 2023.[54][55] Judge Saúl Martínez Lira ordered the auction of Interjet's remaining assets, including airport infrastructure, equipment, and intellectual property, to address a total creditor debt exceeding 40 billion pesos (roughly $2.3 billion USD at prevailing rates).[54][56] This phase prioritized distributions to over 30 major creditors, such as former lessors and employee unions seeking unpaid wages and benefits, though disputes arose over auction modalities, including proposals to sell assets in bulk lots.[57][58] By mid-2023, the process underscored the airline's insurmountable liabilities, with minimal recovery prospects for unsecured claimants.[55]Post-Bankruptcy Developments and Revival Attempts (2024–2025)
In early 2024, Alejandro del Valle, chairman of Interjet's board and principal owner, publicly stated intentions to revive the airline, predicting a potential resumption of operations later that year through restructuring and new investor commitments.[59][60] By December 2024, del Valle reiterated plans for a relaunch in the first quarter of 2025, involving a $500 million investment to acquire aircraft and settle debts, while emphasizing negotiations with financial backers to overcome the ongoing bankruptcy liquidation.[61] These announcements, however, encountered persistent challenges, including creditor disputes over outstanding claims estimated in the billions of pesos and requirements for Mexican aviation authority approvals, which delayed any concrete implementation.[3] Asset disposals accelerated in 2024–2025 as part of the court-mandated liquidation, with auctions aimed at satisfying creditors holding claims from unpaid taxes, supplier debts, and employee settlements totaling over MX$40 billion (approximately US$2.2 billion).[62] A notable transaction occurred on August 21, 2025, when Mexico City International Airport (AICM) acquired key Interjet assets, including operational infrastructure such as counters and slots at the facility, to integrate into its management and potentially reallocate for other carriers.[63][64] This sale underscored the shift toward full liquidation, further complicating revival prospects by divesting core resources needed for independent operations. Despite del Valle's optimism, no flights recommenced by October 2025, as regulatory hurdles, incomplete creditor resolutions, and the progressive auctioning of remaining assets—such as aircraft and real estate—prevented the formation of a viable operational entity.[65] The airline's trustee continued overseeing distributions, prioritizing secured creditors like the Mexican tax authority, which alone claimed over $1.5 billion in unpaid obligations.[3] These developments effectively halted substantive recovery efforts, transitioning Interjet from potential restructuring to terminal dissolution.Business Model and Operations
Core Strategy as a Hybrid Carrier
Interjet adopted a hybrid carrier model that blended elements of low-cost operations with select full-service features to target middle-market passengers seeking affordability alongside convenience. Unlike ultra-low-cost competitors such as Volaris, which emphasized ancillary fees for basics, Interjet offered base fares competitive with discount carriers while including complimentary checked baggage—typically one or two pieces up to 25 kg each—and onboard snacks and non-alcoholic beverages on most flights.[66][67][68] This approach aimed to capture corporate and leisure travelers in Mexico's domestic market, where demand for value-added economy options exceeded pure no-frills alternatives.[69] To maintain cost efficiency within this hybrid framework, Interjet prioritized high aircraft utilization rates, enabling frequent turnarounds and maximizing revenue per plane, a tactic borrowed from low-cost models but adapted to support added amenities. The airline's strategy focused on point-to-point routes from primary hubs like Mexico City International Airport, avoiding heavy reliance on secondary facilities that pure low-cost carriers often used for lower fees, though this exposed it to congestion-related expenses.[66][70] Such operational levers allowed Interjet to keep unit costs below full-service rivals like Aeroméxico while funding perks that boosted load factors among yield-sensitive segments.[71] Interjet differentiated itself through marketing operational reliability, including claims of superior punctuality, positioning the carrier as a dependable alternative in a market plagued by delays at congested airports. However, independent assessments, such as Skytrax's 3-Star Low-Cost Airline rating, highlighted inconsistent service quality, with onboard offerings varying in appeal and no sustained empirical edge in on-time performance over peers during peak years.[68] This hybrid intent supported rapid growth to over 10 million passengers annually by 2017, though it strained finances amid fuel volatility and maintenance costs not fully offset by the model's efficiencies.[66]Pricing, Amenities, and Service Differentiators
Interjet implemented a dynamic pricing strategy that enabled base fares to undercut competitors on domestic and short-haul international routes, positioning it as a cost-effective alternative to full-service carriers like Aeroméxico while avoiding the bare-bones model of pure low-cost operators such as Volaris.[66] For instance, promotional fares frequently started below equivalent Volaris offerings, supplemented by ancillary revenue from fees like checked baggage, which charged Mex$1,000 (approximately $50 USD) for the first bag on most routes.[67] This approach allowed flexibility in yield management, with unit costs excluding fuel reported at USD 4.4 cents per available seat mile in 2011, contributing to its hybrid appeal by balancing affordability with select inclusions.[66] In-flight amenities emphasized value differentiation through complimentary refreshments, including soft drinks, juices, coffee, tea, water, and limited alcoholic options like whiskey and vodka, alongside snacks on most flights—features absent or fee-based among low-cost rivals.[68] [72] Seating offered a consistent 34-inch pitch across economy, exceeding the 28-31 inches typical of budget carriers, while entertainment was provided via drop-down screens with movies, TV shows, and music, though personal screens or Wi-Fi were not standard.[68] [29] These elements were marketed as enhancing passenger comfort without premium pricing, earning Interjet a 3-Star Low-Cost Airline rating from Skytrax for its "excellent" free bar service and overall product quality relative to segment peers.[68] Service differentiators centered on a hybrid model that blended low fares with upscale touches, such as unrestricted beverage service and greater legroom, which passenger reviews often cited as superior to Volaris's nickel-and-dime approach on comparable Mexico routes.[73] Interjet positioned itself against Aeroméxico by delivering similar amenities at lower base costs, fostering perceptions of better value; pre-2020 feedback on platforms like Tripadvisor highlighted satisfaction with these inclusions, though operational reliability varied.[66] [73] This strategy aimed to capture market share from both low-cost and legacy carriers in Mexico's competitive landscape, though it relied on maintaining service consistency amid fleet and cost pressures.[66]Frequent Flyer Program and Customer Loyalty
Club Interjet served as the airline's primary frequent flyer program, distinguishing itself by awarding members cash credits rather than traditional points or miles accumulated based on distance flown. These credits could be applied toward the purchase of future tickets, providing a direct financial incentive for repeat travel with Interjet.[16] The program emphasized simplicity, with credits earned as a percentage of ticket costs, reportedly around 15% on bookings, aimed at encouraging customer retention through tangible rebates.[74] Accrual occurred primarily through flights operated by Interjet, with redemption options limited to fare discounts or full ticket offsets, lacking the expansive upgrade paths or elite status perks common in larger carriers' schemes. Integration with partner airlines for mile or credit earning was minimal, constrained by Interjet's independent operations and limited codeshare arrangements, such as those with American Airlines, which primarily benefited the partner's loyalty program rather than Club Interjet members.[75] This restricted accrual opportunities outside Interjet's network, reducing the program's appeal for international or multi-airline travelers. Despite attracting members through its straightforward cash-back model, Club Interjet operated on a modest scale reflective of Interjet's regional focus, with no publicly reported figures exceeding the airline's overall passenger base of under 10 million annually by 2019. Redemption rates remained low amid growing operational challenges, including flight cancellations, which eroded trust and likely left many credits unused as the airline suspended services in late 2020. The program's design prioritized immediate value over long-term loyalty tiers, but its effectiveness in fostering sustained customer allegiance was undermined by Interjet's financial instability.