Mexicana Files for Bankruptcy, Reduces Flights

Airline remains committed to its customers By: Janeen Christoff
Mexicana has suspended some flights. // (c) 2010 Mexicana Airlines
Mexicana has suspended some flights. // (c) 2010 Mexicana Airlines

The Details

Mexicana Airlines

Mexicana Airlines has suspended some flights due to its deteriorating financial situation. The airline cited IATA’s decision to suspend the carrier’s BSP sales channel as one cause, forcing the airline to suspend the sale and issuing of tickets indefinitely and to cancel certain flights to optimize resources while ensuring that priority is given to homebound passengers.

In a statement, Mexicana Airlines apologized for any inconvenience to passengers.

“The airline and its employees are determined to make an effort to continue operating out of concern for passengers. 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,” said Mexicana.

On Aug. 2, Mexicana Airlines filed insolvency proceedings in Mexico and bankruptcy protection, Chapter 15, in the U.S. Mexicana is hoping that these proceedings will bring its cost structure, particularly labor costs, in line with market conditions.

In order for Mexicana to continue operations and to protect the company, passengers and its creditors, a series of temporary injunction relief measures have been granted to the airline to prevent creditors from exercising their rights over the airline’s outstanding debt obligations.

Despite Mexicana Airlines’ bankruptcy filing, the airline noted that MexicanaClick and MexicanaLink operate independently of Mexicana Airlines and are therefore unaffected by this process. Updates can be found on Mexicana’s website.

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