Mexico Says Not to Rescue Failing Private Airline
 Xinhua
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August 08, 2010
The Mexican government will not bail out Compania Mexicana de Aviacion (CMA), a private airline facing a debt crisis, Mexican Economy Minister Bruno Ferrari late last week.
"We have no knowledge of any possible rescue," Ferrari told reporters at the National Trade Service and Tourism Chamber meeting. "We are paying close attention to what we must do," he added.
The CMA, owned by hotel chain Grupo Posadas, stopped selling tickets on late Wednesday. Customers holding bookings are being served by other airlines.
According to radio reports, the firm owes more than 1.6 billion pesos(127.4 million U.S. dollars) to creditors, and is involved in a wage dispute with staff over pay cuts.
The CMA has been granted bankruptcy protection by a bankruptcy judge and must reach an agreement with its creditors within one year, local broadcaster Formato 21 said. Otherwise, it risks being shut down.
The airline, with 69 aircraft in total, carries around 22,000 passengers each week on average. It serves international flights to Britain, Spain, Canada, the United States, the Caribbean and South America.
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