The founder of low-cost airline Ryanair, Tony Ryan, is looking to set up a budget airline in Mexico together with a local firm.
According to media reports, Ryanair will make the investment through his family’s investment firm, Irelandia Investments, while a Mexican bus company, is Ryan’s local partner. The Ryan family already has a 16 percent stake in Tiger Airways, a budget airline based in Asia.
Ryan and others such as Emilio Azcárraga and Mexican billionaires Carlos Slim, are attracted by the numbers of potential fliers in Mexico. According to the Mexican government the market could double to 40 million passengers in as little as three years.
Azcárraga and Slim are backing a new budget airline, while two other new carriers, Avolar and Interjet started operations last year. Mexicans already pay up to $50 for a bus ticket which is roughly what profitable low-cost airlines charge for a plane ticket in many parts of the world.