The tail of a Mexicana de Aviación airbus.
Latin America: Week in Review

Grupo Mexicana Suspends Service Of Three Airlines; Cites Financial Problems

August 30, 2010 By Staff

The tail of a Mexicana de Aviación airbus.

Today in Latin America

Top Story — On Saturday, Grupo Mexicana suspended the operations of three of its airlines “until further notice,” due to financial issues that arose when the group changed owners a week ago.

Flights for the groups’s three main airlines – Mexicana Airlines, MexicanaClick and MexicanaLink – halted flights at midday on Saturday.

“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,” a statement from the group said, according to CNN. “We hope to be back in the air soon and would like to thank everyone involved in this process for their support and understanding.”

In early August, Mexicana de Aviación also cancelled several international flights as a cost cutting measure.

Following unsuccessful talks with trade unions aimed at reducing costs, the airline filed for bankruptcy protection, according to Business Week. The company’s proposal included pay cuts for employees and a 40 percent reduction of the workforce, The BBC reports.

“Mexicana Group deeply regrets the inconvenience to its passengers,” the group added in its statement.

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Image: KristaLAPrincess @ Flickr.

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