Mexican Airline Grounded
Mexico’s biggest airline has stopped flying after the failure of a last-ditch bid to rescue it.

Mexicana suspended all operations almost a month after filing for US bankruptcy protection. It had been bought last week for a nominal fee by a group of local investors, who planned to make all cabin crew redundant and then rehire about a quarter of them. However, the cost-cutting plan couldn’t be agreed with the unions.
The group operated 69 aircraft under the Mexicana brand and 35 under the low-cost MexicanaClick, which it started in 2005. MexicanaLink, a separate unit which opened last year, had 15 planes.
Mexicana served more than a dozen routes to the United States, as well as flights to Latin America and Europe. Over the past couple of years, it’s lost market share to budget airlines, and the whole industry suffered when tourism dropped last year in the wake of the swine flu outbreak and the economic crisis. Reports about violence in Mexico have also continued to discourage travel.
by Andy Moreton
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