Mexicana on the edge of bankruptcy?

[sdbelgium]

http://www.flightlevel.be/3047/mexicana ... schoentjes

Two planes have been seized in Calgary and Montréal after Mexicana failed to pay the lease rates to Air Canada. A330s will be following in September. ILFC, GECAS and CIT are considering to pull back some of the aircraft.

[sn26567]

In English: http://www.bloomberg.com/news/2010-07-3 ... -says.html

The differences with Air Canada have since been resolved and all flights are operating normally, says Mexicana now. Two flights had been cancelled.

A bankruptcy of Mexicana would be a severe blow for oneworld, which does not count too many members.

[jumpjet]

Recent press has speculated that Mexicana wll shortly be seaking official court protection from its creditors - the equivalent I think of the US chapter 11 Bankruptcy protection - and as we all know in recent years pretty well most of the US major airlines have been in [some more than once] chapter 11 protection and lived to tell the tale - so dont write Mexicana off just yet.

[sdbelgium]

First signs are already there. Lots of route and frequency cuts on the North-American network and European service (Gatwick and Madrid) are cancelled alltogether as from 01SEP10.

[sn26567]

American Airlines terminates codeshare flights with Mexicana. Furthermore, the US Federal Aviation Agency has decided to downgrade the safety rating for Mexico from Category I to Category II.

It is not good to seem associated with an (almost) bankrupt airline whose safety rating goes down!

[RoMax]

American Airlines terminates codeshare flights with Mexicana. Furthermore, the US Federal Aviation Agency has decided to downgrade the safety rating for Mexico from Category I to Category II.

It is not good to seem associated with an (almost) bankrupt airline whose safety rating goes down!

Not a suprise but, AA said they would help Mexicana to get out of the problems. Is terminating a codeshare really helping?

[kiwiandrew]

American Airlines terminates codeshare flights with Mexicana. Furthermore, the US Federal Aviation Agency has decided to downgrade the safety rating for Mexico from Category I to Category II.

It is not good to seem associated with an (almost) bankrupt airline whose safety rating goes down!

Not a suprise but, AA said they would help Mexicana to get out of the problems. Is terminating a codeshare really helping?

AA did not choose to terminate the codeshare , they were required to terminate it by the FAA , just as DL have been required to terminate their codeshares on AM operated flights .

[RoMax]

AA did not choose to terminate the codeshare , they were required to terminate it by the FAA , just as DL have been required to terminate their codeshares on AM operated flights .

So it's not allowed to have codeshares with a "Category II" carrier by the FAA? I didn't knew that.

[sn26567]

Mexicana “financially non-viable”

The financial and labour situation at the Mexican national carrier is "no longer sustainable" according to a statement on its website, leading the airline to cancel a number of flights to Pamana City and Orlando from Mexico City.

Despite of investments of more than US$300 million and savings of some US$800 million, Mexicana has been unable to offset its crew costs.

The airline said its pilots earn 49% more than the average wage paid by legacy airlines in the United States and 185% more than the average pilots flying Airbus A320s for other Mexican low cost airlines like Volaris or Interjet; its flight attendants earn 32% more than the U.S. average and 165% more than their Mexican counterparts.

Mexicana has presented its pilots and cabin crew with two alternatives.

Option one is "to enter into a new collective contract", which would mean accepting cuts of 41% and 39% in wages and fringe benefits for pilots and flight attendants, respectively. The number of pilots and flight attendants would also be cut by 40%.

Option two is for stockholders to sell the airline to its unions for the "token sum of $1 peso".

More detail from ABTN


Mexicana Airlines Files For Chapter 15 Bankruptcy In US

Struggling airline Compania Mexicana de Aviacion filed for bankruptcy protection in the U.S. and Mexico Monday amid labor unrest and mounting financial woes.

Mexicana, which also sought protection restructuring under the Mexican equivalent of Chapter 11, filed for bankruptcy under Chapter 15 in a New York bankruptcy court to protect its U.S. assets from creditors.

Read more: http://www.nasdaq.com/aspx/stock-market ... z0vYebgqsR

[sn26567]

Mexicana seeks creditor protection in Mexico and USA

Mexicana de Aviacion has filed for creditor protection in Mexico and the United States after management and employees failed to agree on wage and staff cuts to keep the debt-ridden airline flying.

Mexicana is expected to operate close to normally despite its financial crisis.

Three of the company's aircraft -- two in Canada and one in Chicago -- have been grounded since last week at the request of creditors concerned about the company's financial situation. The company owns only nine of the 64 aircraft in its fleet.

More from Reuters

[andorra-airport]

I guess the end is really near now. They stopped selling tickets for their international flights...

[regi]

I guess the end is really near now. They stopped selling tickets for their international flights...

Well, that is a honnest attitude. Many other companies still accept money or goods from suppliers despite they know they won't exist anymore next week.

[sn26567]

From a Mexicana press release: "If you are planning on traveling by air in the immediate future, Mexicana Airlines suggests you consider alternatives, where possible".

Very encouraging.... If they hope to improve their business like that, I wish them good luck.

[sn26567]

Mexicana reinstates some suspended routes

Beleaguered carrier Mexicana suspended 15 international routes over the weekend, including Sao Paulo, Montreal and Chicago, but as of today has reinstated the Madrid and London routes.

The airline's staff are in talks with potential buyers, according to Reuters, with Mexico's other major airline AeroMexico cited as a possibility.

More from ABTN

[Propwash]

DATE: 11/08/10
SOURCE: Air Transport Intelligence news

Mexicana's staff agrees to two month wage freeze
By Lori Ranson

Troubled Mexicana has secured a commitment from its unions to defer wages for two months as it seeks a cash infusion to keep operating in creditor protection.

As it formally sought restructuring on 3 August Mexicana explained its high mainline labour costs were a driving force behind its weak financial state, and said it needed a 41% wage reduction from pilots and a 39% cut from its flight attendants.

Full article (Flightglobal)

[michel-laws]

Thats really very sad to know

[regi]

Do Phillipino pilots speak Spanish as well ? See the massive outflow of PAL pilots.

[sn26567]

MEXICANA appears to have been saved. News came late Friday that a consortium of Mexican investors have acquired 95% of Nuevo Grupo Aeronautico, the holding company controlling Mexicana de Aviacion and two domestic airlines, Mexicana Click and Mexicana Link. In a statement it said the acquisition was only the first step of a process to recapitalize the ailing airline and return it to solvency.

Called Tenedora K, the group includes the Mexican hotel group Posadas; Omega, a construction company, and insurance corporation Arizan.

Mexicana Click and Mexicana Link have continued to fly but Mexicana suspended 15 mainly long haul services including London, Madrid and Montreal.

Source: AERBT and www.mexicana.com

[fcw]

very sad news for all pax and employees...
http://www.theglobeandmail.com/report-o ... le1687905/

In brief, Mexicana Airlines (Grupo Mexicana) suspends its operations indefinitely from 12 noon on August 28 .

[regi]

reads as the Sabena saga