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Familiar Ties: Mexico-OC Business Remains Strong

Mexico City-based discount airline InterJet ceased flights out of John Wayne Airport on July 19.

Its numbers “weren’t what they used to be,” an airport spokesperson said.

The exit was a rare dip in commerce between Orange County and Mexico that in other respects is going strong.

Mexico is Orange County’s biggest trading partner ahead of Canada and China combined, according to a 2013 international economic forecast by California State University-Fullerton’s Mihaylo business school.

Nearly a quarter, 23%, of Orange County exports went to Mexico. Canada and China each got 11%, the report said.

County exports are expected to grow from $5.7 billion in 2011 to $6.8 billion by the end of the year, according to the report.

Mihaylo’s 2014 report is scheduled to be released by September, the school said.

InterJet’s cancellation left AirTran as the only JWA carrier flying to Mexico. The subsidiary of Dallas-based Southwest Airlines flies from JWA to Cabo San Lucas and Mexico City, serving about 14,500 passengers a month within its JWA-Mexico routes.

The AirTran route to Cabo became a Southwest Airlines flight Sunday, the first West Coast flight by Southwest to destinations south of the U.S. border. In November, JWA’s daily Mexico City flight will also switch from AirTran to Southwest, ending AirTran service at the airport.

“We have room for more service,” said Jenny Wedge, public information officer for the airport.

She said no other airline flying from John Wayne is interested in adding flights to Mexico but that airport officials have talked with Mexico City-based Volaris about coming to the airport.

Volaris might take a broader reach than InterJet’s main marketing focus on Mexican tourists to the U.S., she said. That could include tourism in the other direction and business travel.

Volaris is based in Mexico City and also operates hubs in Tijuana and Guadalajara, which means it could fly to cities AirTran doesn’t.

Wedge said no agreement has been reached and that an airline would still have to get operating certificates and pass a noise test before beginning flights.

‘Strong Presence’

More evidence of growing economic interaction between the county and Mexico is the recent state trade and investment mission to that country.

The group of about 90 business, economic development, investment and policy officials traveled there the last week of July.

Several Orange County business, political and tourism leaders participated in Gov. Jerry Brown’s recent trade mission to Mexico, including State Sen. Lou Correa, D-Santa Ana; Anaheim/Orange County Visitor & Convention Bureau President Jay Burress; Irvine Chamber of Commerce Senior Director of Economic Development and Tourism Linda DiMario; and Lucy Dunn, president and chief executive of the Orange County Business Council.

DiMario said the trip promoted tourism, education, technology, and energy and aimed to foster greater business interaction between Mexico and California.

“Orange County had a strong presence in the room,” Dunn said.

The Irvine-based Orange County Visitors Association was also there, represented by Chip Stuckmeyer, senior vice president for global sales and marketing.

The association got ahead of the curve on interaction with Mexico when it announced in June that it would open an office each in Mexico City and Guadalajara this year.

“We’re excited about the offices in Mexico, and we’re trying to increase both business and leisure travel coming from Mexico,” said Ed Fuller, association president and chief executive.

Fuller said the association is building a Spanish-language website and working with commercial, leisure and online travel agents to increase travel from Mexico to here.

He called the trade mission an “obvious opportunity” for the county to grow its business with Mexico.

A Mexican business traveler to OC could be someone who wants to sell to American firms or who has operations here while being based in Mexico.

“One of the largest cement companies in the world is based in Mexico, and maybe they come to look at their operations here,” Fuller said. “They’re going to need to fly up.”

OC’s large number of residents with ties to Mexico also represent plentiful cross-border business links.

Convention Represents Ties

So much so that the California Hispanic Chambers of Commerce is holding its convention this year at the Hyatt Regency in Garden Grove.

The group expects 3,000 attendees from political circles, advocacy groups, corporations and small businesses.

Sessions include topics related to business relationships between Hispanic-owned businesses in California and Mexico, such as one on how to approach cross-border business.

The group estimates Orange County has about 30,000 Hispanic-owned businesses.

In addition to data, travel, trade, tourism and business activity, there’s also the

importance of travel from the county to Mexico.

AirTran flies to and from John Wayne Airport, and the two cities it flies to cover tourism and business travel.

Half the flights go to Cabo San Lucas, and almost all of that travel is for leisure, said JWA’s Wedge.

Yet the city also hosts corporate meetings—the Hilton Los Cabos Beach & Golf Resort has 50,000 square feet of meeting space inside, on outdoor terraces and beach areas, and event space for up to 800 people.

And the airport’s not partial to one type of travel or the other, Wedge said.

“We just want people to be able to fly, coming in or going out.”

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