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Mexican airline sector lags

20 August 2010

On Aug. 3 Mexicana announced that it was seeking bankruptcy protection from creditors in Mexico and the U.S. Mexicana, along with Aeromexico, is one of the two carriers with nationwide reach, and Mexico’s largest by passengers. In addition, the U.S. Department of Transportation’s Federal Aviation Administration (FAA) on July 30 announced that Mexico was not complying with international safety standards.

The bankruptcy marked the beginning of a speedy meltdown that may end with the collapse of Mexicana in the coming weeks. The airline has suspended ticket sales and canceled numerous flights, mainly to international destinations in the Western Hemisphere and Europe. It has been forced to pay in advance for services, and faced problems such as refusals to refuel its planes.

source: Forbes

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