Mexican airline files for bankruptcy

By Charles Starmer-Smith (telegraph.co.uk)

Out of business?

Published: 2:28PM BST 04 Aug 2010

A spokesman for the airline (Mexicana de Aviación) said it had been left with little choice after the unions[1] failed to agree with its cost-saving measures.

 

The Mexican national airline, which had suffered from the economic downturn and a dramatic fall in the number of holidaymakers visiting Mexico following last year’s swine flu outbreak, has debts of more than $1 billion (£628 million).

 

In a statement on its website, it said that the financial situation is “no longer sustainable”. Despite new investment and savings of some $800 million (£502 million), its operating costs were still too high, it claimed, adding that its pilots earn up to 50 per cent more than the average wage paid by airlines in the US and its flight attendants earn 32 per cent more than the US average.

 

The airline has cancelled a number of flights to Pamana City and Orlando from Mexico City.

 

Mexicana currently operates four flights a week between London Gatwick and Mexico City. British Airways is the only other airline operating flights to Mexico City from the UK, with three flights a week between Heathrow and the Mexican capital.

 Avión de Mexicana

The Oneworld Alliance said Mexicana’s membership was unaffected by yesterday’s announcement. It added that Mexicana’s affiliate carriers, MexicanaClick and MexicanaLink, which are also part of Oneworld, operate independently and have not been affected.

 

August 4th, 2010.

 


[1] Known in Mexico as “sindicatos”

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