03:58 PM CST on Thursday, January 5, 2006

By SUZANNE MARTA / The Dallas Morning News

Mexicana Airlines and AeroMexico have told officials at Dallas/Fort Worth International Airport that they will cease North Texas operations, citing difficult market conditions.

It would be the first time D/FW was without a Mexican carrier in more than a decade.

Mexicana, which reentered the D/FW market in July after a long absence, had pledged to become the airport’s largest foreign carrier. The airline launched daily service to Guadalajara, and served Zacatecas and Morelia several times a week.

In a statement, the carrier said it decided to cease operations only after an exhaustive analysis of the financial viability of the routes.

"If market conditions warrant it in the future, we will definitely reconsider a return to the city of Dallas," the statement said.

Mexicana has a code-sharing agreement with Fort Worth-based American Airlines, so North Texas travelers may connect to the carrier’s network in Mexico City.

AeroMéxico offered daily service to Mexico City, but was impacted negatively after its code-share partner, Delta Air Lines, dismantled its North Texas hub last year

Joe Lopano, D/FW’s executive vice president of marketing and revenue management, said he was caught off guard by the announcements and planned to meet with airline executives in Mexico City "to try to reverse this."

Mr. Lopano said Morelia and Zacatecas were smaller markets may be better suited for regional jets — something he plans to discuss with the Mexican carriers and American Airlines.

Traffic from Mexican consumers "is substantial and one either Mexicana or AeroMéxico should be tapping into," Mr. Lopano said.

American Airlines has been expanding its Mexico service, largely through its regional carrier American Eagle.

Michael Roach, a San Francisco-based airline consultant who has closely followed the Mexican market, said Mexico-based carriers face a significant challenge competing against U.S. carriers in major hubs because they can offer more direct routes to major destinations than their own hubs in Mexico City.

"If you’re going to Aguascalientes from Cleveland, the best way is through Houston, not backtracking through Mexico City," Mr. Roach said.

Mexicana’s service will end Tuesday, AeroMéxico’s last flights depart Feb. 5.

Separately, D/FW officials said Thursday that AirTran Airways Inc. would suspend its single daily nonstop flight to Baltimore in February and would resume the service in May, when it is also scheduled to launch new service to Chicago’s Midway Airport. The discounter suspended its twice-daily service to Los Angeles in December.

E-mail smarta@dallasnews.com