30 AUG: Mexicana, Mexico’s second biggest airline, suspended all operations on Saturday because of serious financial problems.
The suspension includes flights on low-cost subsidiaries Click and Link.
The group, which already partially suspended flights after seeking bankruptcy protection at the start of the month, said it had failed to reach viable, long-term financing deals.
A Mexican consortium last week said it would take over 95 percent of the group’s capital, with the remaining five percent under control of the national pilot’s union.
But the consortium failed to reach a deal to secure the future of Nuevo Grupo Aeronautico, the holding company controlling Mexicana and its two low cost subsidiaries.
"Nuevo Grupo Aeronautico will keep seeking alternatives to give long-term viability to the company," a statement said.
Mexicana initially blamed its financial woes on the high cost of labor, after failing to reach a deal with unions on major cost-cutting.
The company’s fleet comprises 65 aircraft from European manufacturer Airbus and two Boeing 767s, carrying some 22,000 passengers on 220 flights a day.
