Aeromexico rules out merger with rivals for now

By Cyntia Barrera Diaz and Veronica Sparrowe

MEXICO CITY, June 25 (Reuters) - Aeromexico said on Thursday that it had no immediate plans to merge with rivals despite media speculation that a deal was in the works as a way to survive a decline in tourism because of the harsh economic climate and the flu outbreak.

In recent weeks, local media had suggested that Aeromexico was considering a merger with Mexicana.

Aeromexico's Chief Executive Andres Conesa told reporters that teaming up with Mexicana was always a possibility, but there was nothing concrete for now. He said Mexicana was an option "as well as many others."

"It is a permanent exercise to explore what you can do," Conesa said, adding that the company was open to everything from a merger in Mexico or abroad to buying a local competitor or selling some assets.

"Right now the most important thing is to take the necessary steps to guarantee that Aeromexico moves ahead alone," Conesa said.

The company's board is also considering accessing debt markets to boost operations but Conesa declined to elaborate.

Aeromexico was bought in 2007 by Citigroup's (C.N) Mexican branch Banamex.

Airlines across the globe have lost business in the financial crisis, prompting some of them to alter routes, halt airplane orders and increase prices.

Several small airlines in Mexico have closed in the past 18 months.

A flu outbreak in late April further pressured airlines as international and local travelers canceled flights to Caribbean resorts like Cozumel and Cancun.

Still, Aeromexico said it planned to transport 12 million passengers by the end of this year, about the same as 2008. (Reporting by Cyntia Barrera and Veronica Sparrowe)