US’s Cabo Express to shuttle Mexican holiday home owners

Six high-end holiday home communities in Mexico are to receive an exclusive, membership-based air service pending an application to the US Department of Transport (DOT).

Established as a Delaware corporation on February 23, 2022, Cabo Express, will be an indirect air carrier that will contract with an as-yet unnamed US Part 121-certificated air operator to transport up to 300 members of the exclusive club of holiday owners between the Los Angeles Int’l and San Francisco, CA/Oakland areas and San José Cabo in Mexico.

To this end, Cabo Express has applied to the DOT for an exemption from certain of the DOT requirements and economic regulations, including charter rules, to operate indirect air transport of persons and property.

Cabo Express envisions twice or thrice-weekly services between the Los Angeles and San Francisco/Oakland areas and San Jose del Cabo with the possibility of extra sections during peak travel periods.

Flights will only be available to members, their families, household staff, and invited guests of the Cabo Express programme. The cost of flights will be paid entirely out of the funds paid in by the members. No sale, trade, or any sort of compensation in exchange for transport will be permitted. Members will be guaranteed a certain number of flights per year, based on the level of membership for which they pay.

Membership of Cabo Express will be by personal invitation only from within the residential communities and members will not hold an equity interest in Cabo Express. Members will pay an initiation fee up-front and thereafter will pay substantial annual fees, which will fund Cabo Express’ capital and the operation and upkeep of aircraft and associated management fees. No mention is made of the type of aircraft being considered.

Members will not be charged per flight, nor will they pay any additional amounts related to the extent of their aircraft use. Their memberships will not be transferable but may be sold back to Cabo Express.

The communities involved are Chileno Bay Residences and Chileno Bay Golf and Beach Club in Los Cabos; Costa Palmas near San Jose del Cabo; El Dorado Golf & Beach Club on the Baja Peninsula between San Jose del Cabo and Cabo San Lucas; Maravilla at Cabo; and Montage Los Cabos Residences at Santa Maria Bay.

The applicants argue their application is fully consistent with similar exemptions the DOT has previously granted.