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Judge: Mexicana will not fly ever again...

In cooperation with: Visit Mexico
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Zihuatanejo, Mexico
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for Ixtapa, Zihuatanejo, Cabo San Lucas
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Judge: Mexicana will not fly ever again...

A Mexican judge has ordered an end to efforts to revive moribund Mexicana airlines through bankruptcy proceedings, saying no credible new investor had expressed interest in the carrier, officials announced Friday.

Before it stopped flying in 2010 because of financial problems, the privately-operated Mexicana was among the world's oldest continually operating airlines. It began flying in 1921, after carriers like Australia's Qantas and Colombia's Avianca.

Mexico's Federal Judiciary Council said the decision meant an administrator will be appointed to start selling off the company's assets to repay the airline's obligations.

The flight attendants' union said it would appeal the decision, which follows a torturous four-year bankruptcy proceeding. The company had about 8,500 employees when it stopped flying domestic and international routes that included the United States, Canada, South America and Europe.

Despite often desperate attempts by the unions to attract investors, none of those who showed up demonstrated they had the money or a business plan to rescue the carrier.

"Mexicana has ceased to exist as such, but of course we as unions will continue to appeal," said Claudia Rosales, the spokeswoman for the flight attendants' union. Following the bankruptcy, Mexico was left with one other legacy airline — Aeromexico — and several smaller, low-cost carriers.

But given the paucity of departure slots at the Mexico City airport, the nation's busiest terminal, the loss of Mexicana flights lessened competition on some routes. It also affected consumers' ability to choose among fares and flight options, Rosales said.

"Obviously, there has been an increase in fares, and we always argued that allowing a return of Mexicana de Aviacion would increase competition and benefit consumers," Rosales said.

There was a silver lining for former Mexicana employees. The Transportation Department said in a statement that the main creditors had agreed to a deal on the airline's most valuable remaining asset, a Mexico City maintenance facility that still operates with about 1,000 employees. Revenues from that operation - or funds from any possible sale of it - will go into a fund for the unemployed workers and airline retirees.

The man who controlled Mexicana before it went bankrupt, Gastón Azcárraga, was recently charged with illegal use of the airline's funds. He remains at large.

…foxnews.com/latino/…

Acapulco, Mexico
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1. Re: Judge: Mexicana will not fly ever again...

There is going to be a hearing on April 14 regarding the 'missing' businessman. He's probably in the U.S. He requested an 'amparo' --- a document that prevents apprehension, however, they are charging him with money laundering, and that is considered a grave crime and an amparo would not apply or be able to be obtained. Like the school teacher that is still sitting in prison.

Chicago
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2. Re: Judge: Mexicana will not fly ever again...

If they had a viable plan then the unions should of come up with the necessary funds.

Browerville...
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3. Re: Judge: Mexicana will not fly ever again...

I agree with Mike.

The unions should invest their assets and pension funds in Mexicana. The union leaders should also invest their private funds in the company.

The union employees should modify their contracts to help making the business profitable.

Management should be required to return their salaries and bonuses they received for several years prior to the bankruptcy filing.

There is no single entity responsible for Mexicana's problems!

Acapulco, Mexico
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4. Re: Judge: Mexicana will not fly ever again...

Sounds like neither of you have any idea how the unions work in Mexico.

Ontario
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5. Re: Judge: Mexicana will not fly ever again...

LOL, Acares. I wouldn't comment on any legal proceedings in Mexico. I know when I'm out of my jurisdiction. Pass the salsa, por favor.

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6. Re: Judge: Mexicana will not fly ever again...

i doubt you would get that level of cooperation with US unions either.

Victoria, Canada
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7. Re: Judge: Mexicana will not fly ever again...

The person who ran Mexicana is charged with the illegal use of the airlines funds and is still at large..........right, so lets blame the unions.

Just in passing,Mexicana was one of the best airlines I ever travelled on.I still have fond memories of Chilliquilles for breakfast just before landing in Mexco City.

Queretaro City...
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8. Re: Judge: Mexicana will not fly ever again...

Mexicana staff had wages 30-50% higher than staff on U.S. airlines despite living in a country with a much lower cost of living. Efforts to reduce wage bills failed and the airline closed with few assets (as most of the planes were leased) and huge debt.

Las Vegas, Nevada
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9. Re: Judge: Mexicana will not fly ever again...

I won't beat a dead horse but there customer service was the worst I had 2 events with them you would not believe the stories

Zihuatanejo, Mexico
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10. Re: Judge: Mexicana will not fly ever again...

And that is odd...because as an agent of more years than I want to mention...they were absolutely the best to work with. Clients loved flying with them...they always felt almost like first class clients getting such meal service and drinks and smiles from everyone. They were part of my very first job...when I was doing the two week escorted tours in Mexico...clients would get off Mexicana and be just smiling...they were so pleased...we had no lost luggage, no delays, no cancellations...meeting them in Mexico City and then progressing on down to Acapulco...they were not even sad to be leaving Mexico...because they knew that Mexicana would finish off their trip with such a smile. Sure made my job easier... Of course this was a hundred years ago when you actually dressed up to fly on a plane!!! Not today's Greyhound flying!!