Mexican low-cost airline Interjet began its first flights out of Mexico City International Airport Tuesday after purchasing the rights to operate there from troubled carrier Aerocalifornia.

Initially, Interjet will fly to and from Cancun, Monterrey and Guadalajara out of Mexico City without significantly altering its operations in the central city of Toluca, where it previously provided service to the capital's passengers, the company said in a press release.

Starting Sept. 1, the carrier plans to offer new itineraries for both airports.

Interjet said it will speed up plans to increase its fleet size to take full advantage of the two airports' potential passenger traffic, noting that it's the only domestic airline to serve both Toluca and Mexico City.

"The entrance into (Mexico City) is Interjet's strategic response to the great problem of jet fuel costs," the airline said. "Instead of drastically reducing operational capacity, the airline is expanding."

Federal regulators suspended Aerocalifornia in July after it failed to meet a deadline to pay 259.6 million pesos ($25.9 million) in fees required to use Mexican airspace dating back to 2005.

The Communications and Transport Ministry has also suspended or attempted to suspend several other airlines in recent weeks for not paying the fees. Critics accused the government of trying to expedite a consolidation of the domestic airline industry, in favor of specific carriers, during a time of financial stress due to rising fuel costs.

Industry analysts consider Interjet, along with Volaris and VivaAerobus, to be financially the strongest of Mexico's low-cost carriers and the most likely to survive an industry consolidation.
Source: Dow Jones