Mexicana takes siesta in bankruptcy shadow

   
     

Grupo Mexicana has suspended flights until further notice, in the wake of technical bankruptcy and lack of agreements.

The current management of Grupo Mexicana made the executive decision after it received the company in a financially unviable state less than a fortnight ago, the company announced over the weekend.

The state of bankruptcy was compounded by the group’s failure to reach agreements that would allow for the capitalisation of its three airlines: Mexicana Airlines, MexicanaClick and MexicanaLink.

As a result, operations from these carriers have been suspended until further notice as of midday Saturday 28 August 2010, with all flights programmed to depart after this hour cancelled.

The decision to suspend flights follows a series of mismanaged issues and crippling demands from suppliers. The company noted that it continued operating in the interests of passengers without receiving any revenue, following the previous management’s decision to suspend ticket sales over the past four weeks.

Further, a bungled insolvency process failed to protect additional financial resources available to the company so it could to continue operating.

Meanwhile, some suppliers had begun to demand advance payments from the company for services essential to operation, given the uncertainty of the company’s future.

“Today’s decision is a painful one for the 8,000-strong Grupo Mexicana family, but we will continue seeking out ways of securing the company’s long-term financial viability, so our passengers can once again enjoy the quality services they are accustomed to,” the airline announced.

Travellers with Grupo Mexicana who had not yet begun their journey were advised to make alternative arrangements.
Source = e-Travel Blackboard: C.C
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