Mexicana Airlines Bankruptcy Strands Passengers

by Deidre Woollard (RSS feed)
Aug 4th 2010 at 1:02AM

Panic at Los Angeles International Airport this week as Mexicana Airlines filed for bankruptcy protection in the U.S. and Mexico. The airline has suspended some of its flights in Mexico and across the U.S. The airline has promised to give passengers refunds or to rebook them on other flights. The Wall Street Journal reports that the airline had already had several planes repossessed. In filings on Tuesday the airline said that it had lost $350 million since 2007 and listed debt of more than $1 billion.

The Mexico City-based airline attributed its problems to high labor costs and also the problems afflicting Mexico's tourism industry. According to an article in the LA Times the airline says that its costs for pilots and flight attendants are far higher than those of rival airlines. It has called for new contracts that would cut the wages for pilots and flight attendants and reduce the workforce by 40 percent. The secretary general of Mexicana's flight attendants union said the comparison between Mexicana's salaries and the other Mexican airlines doesn't really make sense because those carriers offer shorter flights and a different level of service.

Mexican tourism has taken a lot of hits recently and this latest development won't help matters. In the past couple of years the combination of the global economic crisis, the swine flu epidemic and worries over violence caused by drug cartels has had the popular vacation destination fighting for tourism dollars.

Mexicana operates nearly 70 planes flying to the U.S., Canada, Central and South America and Europe. Last year alone it carried 11.1 million passengers in 2009. The airline's parent company, Nuevo Grupo Aeronautico operates two low-cost domestic airlines, Clink and Link, which will continue to operate without interruption.

Tags: mexicana, Mexico, Mexico City

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Reader Comments (Page 1 of 1)

Anna Aug 6th 2010 5:10PM

I am not questioning the reason of the bankruptcy. However, I do question the lack of response from Mexicana employees. I've tried several times to get a hold of a person to get my questions answered, I have a trip booked that has been paid since February- for the end of the month (Aug). All I want to know is if Mexicana is cancelling this flight so I can make other arrangements. There are 8 of us flying and to reschedule all of us with no time- it may be an issue. I just need an answer!!!

M104 Aug 9th 2010 7:13AM

uh...i dont think they care about YOUR problem at this point. I think they have other issues to worry about like say, losing their jobs.
So stop crying and book somewhere else.

Anna Aug 6th 2010 5:20PM

I am not questioning the reason of the bankruptcy. However, I do
question the lack of response from Mexicana employees. I've tried
several times to get a hold of a person to get my questions answered,
I have a trip booked that has been paid since February- for the end of
the month (Aug). All I want to know is if Mexicana is cancelling this
flight so I can make other arrangements. There are 8 of us flying and
to reschedule all of us with no time- it may be an issue. I just need
an answer!!!

Larry Aug 18th 2010 3:20PM

I bought a round drip ticket from San Francisco to Veracruz in April -- flew August 4th returned August 15th. Worst experience of my life. Canceled plane twice, could never get through to reschedule. Then rescheduled original return flight except they made an unscheduled stop in Mexicali to refuel because it is cheaper and/or their credit is bad with US fuel supply companies.

Good luck on your end of August trip...you will need it.