Thread: Mexicana Airlines Files for Bankruptcy

On of the many tragic casualities of the violence generated by the power of the Mexican Drug Cartels and President Calderon's battle against them has to have been parts of their excellent national tourist industry, which Mexico has spent built decades creating. Before Mexico was a lovely place to visit - far less expensive than destinations like Europe.

Mexicana Airlines Files for Bankruptcy

by Fran Golden Posted Aug 4th 2010 01:36 PM

Financially struggling Mexicana, Mexico's largest carrier, has filed for bankruptcy protection in Mexico and the U.S.

Mexicana says it filed "to restructure its cost and insure the viability of the company." The move comes after pilots and flight attendants rejected a pay cut.

The company says it will continue operating while it solves its financial issues. The filings were in Mexico City and New York, where the carrier says it needs protection from creditors so its assets won't be seized.

The company was adversely affected by the swine flu outbreak last year and "suffered losses as a result of a flu epidemic that had a severe, immediate and unexpected impact upon Mexican tourism and business-related trips and travel," Maru E. Johansen, Mexicana's U.S. vice president for legal affairs and corporate affairs, says in court papers.

The carrier says it owes Mexican banks more than $199 million, though did not disclose its total debt.

Earlier this week the Federal Aviation Administration (FAA) downgraded its aviation safety rating for Mexico, barring the expansion of service by carriers including Mexicana and AeroMexico. The FAA action also means the Mexican carriers cannot carry passengers to or from U.S. airports as part of code share arrangements.

Mexicana has a code share agreement with American Airlines.

http://news.travel.aol.com/2010/08/04/m ... kruptcy%2F

Let's give them a contract flying illegals back to their hometowns. Two birds with one stone.

Originally Posted by ReggieMay

Let's give them a contract flying illegals back to their hometowns. Two birds with one stone.

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GMTA

Originally Posted by ReggieMay

Let's give them a contract flying illegals back to their hometowns. Two birds with one stone.

That's actually a very good idea! When they were in business, Tower Air had a government contract to transport troops on 747's. If the government can do that, then I don't see why we can't work out a deal to keep those pilots flying for a little while until they can find other employment.

I used to work at the American Airlines Flight Academy, and the Mexicana pilots had the same training as AA pilots. Mexicana used to be a nice airline to fly, until Southwest ruined the airline industry.

Considering mexico advised its citizens to boycott travel to the US (on top of the cartels and inept, corrupt government) is anyone surprised by this?

No need to vacation in mexico when vacations at resorts in the Dominican Republic are less expensive and not dangerous.