MEXICANA IN BIG TROUBLE

Blue Punto

MEXICO CITY | Thu Jul 29, 2010 6:43pm EDT

MEXICO CITY July 29 (Reuters) - Mexicana de Aviacion, one of Mexico's two dominant airlines, is considering filing for creditor protection as one of three options for keeping the troubled airline operating, Mexico's chief pilot and flight attendant unions said on Thursday.
Lizette Clavel, head of the flight attendants union, told reporters that Mexicana, controlled by privately held Grupo Mexicana and member of the Oneworld alliance, that the airline was also considering cost cuts via salary reductions and selling the airline to the workers.
(Reporting by Cyntia Barrera Diaz and Veronica Sparrowe)





Just read elsewhere one of its A319 was seized in Canada last night

Blue Punto

They have now filed for Chapter 15 bankruptcy protection

And i believe are looking for a 40% pay cut from staff:eek:

mel.b

I've got flights booked with Mexicana for Christmas from JFK-GUA // SJO-JFK. What does the practicalities of filing for chpt 15 mean Will they keep flying? Anyone know what would happen if they don't? I assume I'd be able to get a refund through my credit card if the worst came to the worst?

bazzachazza

Yeah credit card should cough up if they went under.

Steyr

Looks like the stuff has well and truly hit the fan..


http://www.flightglobal.com/articles/2010/08/09/345907/desperate-mexicana-starts-slashing-network.html

Desperate Mexicana starts slashing network

Air Transport
DATE:09/08/10
SOURCE:Air Transport Intelligence news

Desperate Mexicana starts slashing network
By David Kaminski-Morrow

Mexicana has been forced immediately to withdraw several services on its network after the airline's dire financial situation worsened, IATA having suspended the carrier's billing and settlement channel.

The Oneworld alliance carrier is cutting long-haul flights from Mexico City to Madrid and London Gatwick, as well as services to Sao Paulo, Buenos Aires, Caracas, Bogota and Montreal.

Mexicana says its financial position has "deteriorated substantially" but adds that, despite the "gravity" of its situation, it will "make a concerted effort to continue operating".

"Passengers already booked on flights will be the airline's priority over the coming days," it adds.

Over the past few days Mexicana's cash-flow has been crippled, the suspension of its IATA sales channel forcing it to stop issuing tickets until further notice.

The airline says this has "strangled" its income and had "serious repercussions" for sales at its regional MexicanaLink and MexicanaClick operations.

"Other sources of revenue have either dried up or are being retained by financial institutions following the company's recent decision to file bankruptcy proceedings," it adds.

Mexicana is being forced to cancel a number of flights in order to "optimise available resources", it says.

"Although flights will be reduced to a minimum over coming days, the airline and its employees are determined to make an effort to continue operating out of concern for passengers," it adds.

"It is hoped an agreement will be reached with union leaders and that additional resources can be obtained to secure the financial viability of the carrier."

Blue Punto

Mexicana are gone


All operations ceased on 28/8/2010