| | |  Travel & Outdoors 
Mexico's Largest Airline to Shut Down on Saturday
 Xinhua
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August 28, 2010
| | A man checks in at a Mexicana airline counter at Benito Juarez International Airport in Mexico City on Friday, the day the airline announced it would soon halt all operations. (Alexandre Meneghini/Associated Press) | |
Mexico's debt-laden airline Compania Mexicana de Aviacion will cease all operations on Saturday, senior government officials announced Friday.
The largest Mexican air carrier will fly its last plane at midnight Friday, before it grounds its entire fleet by Saturday noon, said Communications and Transportation Minister Juan Molinar Horcasitas at a joint press conference with Labour Minister Javier Lozano.
No sanctions are foreseen against Mexicana, which filed for bankruptcy protection in early August, and its staff's employment contracts remain valid, the two ministers said.
The announcement came after Tenedora K, a private equity firm that has acquired 95 percent of Mexicana's shares, voiced its intention to seek additional investors.
With its debts estimated at over 1 billion U.S. dollars, Mexicana stopped selling tickets three weeks ago, but has kept flying for passengers who had bought tickets in advance.
The closure of the airline also led to the shutdown of its small subsidiary Click and Link, which had been making profits by offering low cost flight services. |
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