Aviation News

August 27, 2010

Mexicana to Suspend All Operations At Midnight Friday

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By: BNO News
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Ailing Mexicana de Aviacion, Mexico’s largest air carrier, will suspend all operations at midnight this Friday due to lack of funds, Milenio Television reported.

Mexicana decided to suspend operations after not having enough cash flow in order to ease its debts. Mexicana workers were informed minutes ago but no details regarding the future of the company and workers were announced.

Mexico’s pilots union, Asociación Sindical de Pilotos de Aviación de México (ASPA), confirmed the information but remarked that talks are ongoing between the company and its employees in order to finalize details.

Two weeks ago, Mexicana announced the suspension of its international flights because its financial situation deteriorated and the company filed for insolvency proceedings in Mexico and bankruptcy protection.

Later, on August 13, the air carrier announced that the consortium Tenedora K acquired 95 percent of the air carrier stocks. The consortium is formed by a group of Mexican investors that will be now the majority owner. The remaining 5 percent is owned by ASPA.