Strategic Alliance Between Iberia and Mexicana

Spain and Mexico have never been closer now that Mexicana and Iberia, the
most important international airlines in their respective markets, have
announced the signing of a bilateral agreement of code-share flights and
frequent flyer programs. Fernando Flores and Fernando Conte, the Chief
Executive Officers of both companies respectively, signed the agreement
that will be in effect as of April 1, 2004, subject to government
approval. Present at the signing were: the Secretary of Tourism, Rodolfo
Elizondo; the Mexican Ambassador in Spain, Gabriel Jimenez Remus; the
Director of Fonatur, John McCarthy; the Director of the Tourism Council in
Mexico, Francisco Ortiz; and the President of the Cintra Group, Dr.
Rogelio Gasca Neri. This new alliance will be of great benefit to the
passengers that travel on both carriers.

Thanks to this agreement, passengers of both Mexicana and Iberia will be
able to travel with greater ease to regional destinations in their
respective countries since both companies will be coordinating their
schedules and products. Spaniard travelers can choose from over 30 Mexican
destinations connecting through hubs in Mexico City and Cancun.
Additionally, they will be able to reach within Mexicana`s network, 25
destinations in the United States, Canada, Central and South America.

Mexicana`s travelers will now have available Iberia`s transatlantic
flights, which can take them to more than 34 destinations in Spain, 31 in
Europe, and 6 in Africa and the Middle East.

In addition to greater access by way of the route networks that both
carriers offer, passengers will have easier connections and a one-time
check- in from their origin to their final destination.

Frecuenta and Iberia Plus, the frequent flyer programs of both airlines,
will reciprocally offer the option of accruing and redeeming miles and
points respectively. Members of these programs will be able to benefit
from the enhancements to these programs effective April 1, 2004.


“These agreements will contribute to fortify our position as a leader in
air traffic between Europe and Latin America. With the collaboration of
Mexicana, an airline with one of the most modern fleets in the Americas,
it allows us to connect with very attractive destinations in Mexico, and
reinforces this market which continues to maintain a great growth
potential,” said Fernando Conte, CEO of Iberia.

“The airline market between Spain and Mexico has seen an increase like no
other market during the last few years, and presents great opportunities
for development and diversity,” commented Fernando Flores, CEO of
Mexicana. “It is not a coincidence that we thought of Iberia, the most
important airline in Spain, as our next strategic partner. Iberia will be
a fundamental part of the development of our international bilateral
agreements, which are designed to satisfy the needs of our customers.” Dr.
Rogelio Gasca Neri was also pleased with the signing of this agreement as
it also represents the beginning of a successful relationship between the
Iberia and Cintra Groups.
At the conclusion of this grand event, Secretary Rodolfo Elizondo spoke
about the importance of this agreement, that “without a doubt” he
commented, “will result in incremental business between Spain and Mexico.”
Mexicana Airlines is Mexico`s leading international airline. Its fleet is
considered to be one of the most modern in the world, offering over 52
destinations in North Central, South America and the Caribbean. Mexicana
also offers great benefits in the accrual and redemption of miles through
its strategic allies in diverse countries, as well as access to Executive
Lounges, a wide array of convenient connections and coordinated schedules
within an extensive route network.

Iberia today is not only Spain`s leading airline, but also the market
leader on Europe-Latin America routes. With 2002 revenues of 4.7 billion
euros, net earnings of 160 million, and an operating profit of 249
million, it is Europe`s most profitable scheduled carrier. It is also
distinguished by its commitment to social causes, and particularly to the
integration of the handicapped in the workplace. A survey in 2003 by the
Enterprise and Society Foundation ranks Iberia among the three Spanish
companies with the best reputations for social activism, and first in
employee cooperation programs. Along with its franchise partner Iberia
Regional, Iberia operates some 1,000 flights daily to a hundred
destinations around the world. In 2003, Iberia carried over 29 million
passengers. It is a member of the oneworld airline alliance along with Aer
Lingus, American Airlines, British Airways, Cathay Pacific, Finnair,
LanChile and Qantas.