Thread: Mexicana cuts flights, drops routes amid 'deteriorating' fin

Mexicana cuts flights, drops routes amid 'deteriorating' finances

By Ben Mutzabaugh, USA TODAY

By Alfredo Estrella, AFP/Getty ImagesMexican carrier Mexicana has begun scaling back operations on some routes, saying its financial condition has "seriously deteriorated in recent days," The Associated Press reports. The airline filed for bankruptcy protection last Monday.

As for the just-announced cuts, AP writes that "the airline's website listed [15] flights as suspended starting Monday (today), with [three] more suspended beginning Tuesday and Wednesday. The cutback affected flights to San Antonio, Chicago, Montreal, Madrid, London and cities in Central and South America."

The latter routes include cuts in Mexicana's flights to Sao Paulo, Buenos Aires, Caracas and Bogota, according to Air Transport Intelligence (ATI). The carrier says it will drop many routes altogether.

Reuters notes that "on Wednesday, Mexicana suspended ticket sales, raising questions about ... how long it can continue to operate. In its statement, Mexicana painted a picture of worsening cash problems as creditors have turned their backs and employee costs remain burdensome. Without fresh revenue from new ticket sales the company would have to rely on other financing but said those options were scarce."

The Telegraph of London says passengers scheduled to fly on canceled Mexicana routes "over the coming days will be rebooked on other airlines. Those with forward bookings should contact the airline on 0808 101 7600."

Still, the company appears to be holding on to hope that it might survive the current crisis. ATI quotes Mexicana as saying: "It is hoped an agreement [on concessions] will be reached with union leaders and that additional resources can be obtained to secure the financial viability of the carrier."

It also appears possible that a new buyer may emerge and give the airline new life. "There are three important national groups" considering a deal for Mexicana, Lizette Clavel, head of the flight attendants union, is quoted by Reuters as saying to Radio Formula.

In the meantime, Mexicana says it "will be forced to cancel certain flights over coming days to optimize available resources and ensure that priority is given to homebound passengers," according to Dow Jones Newswires.

http://travel.usatoday.com/flights/post ... s/104685/1

Related
Mexicana Airlines Files for Bankruptcy
http://www.alipac.us/ftopict-208378-mexicana.html

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