Analysis of the proposal made by the defense ministry suggests that the domestic carrier would be profitable, but no decision has yet been made, President Andres Manuel Lopez Obrador told reporters.
If approved, the airline could begin operating in 2023 with a dozen planes, including the government's Boeing 787 Dreamliner, he said.
Lopez Obrador, an austerity advocate who uses commercial flights, has been vowing to sell the plane since his 2018 election campaign, calling it an "insult" to the people.
The jet was purchased for about $218 million during former president Felipe Calderon's 2006-2012 term in office, but the only one who used it was his successor Enrique Pena Nieto.
Lopez Obrador tried unsuccessfully to sell the airliner, which is customized with an executive bedroom, private bath and seating for 80 people.
The president has given increased responsibility to the armed forces, including control of ports and customs and major infrastructure projects -- moves criticized by his opponents.
He has also introduced reforms to put the National Guard under military control, deepening concerns about what Amnesty International has called "the process of militarization of public security in Mexico."
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