Mexican Business Consortium Tries To Rescue Mexicana Airlines

Posted Aug 23rd 2010 11:34 AMUpdated Aug 23rd 2010 12:13 PM

TEXT SIZE:

AAA
Mexicana airlines may have found a way out of its financial chaos. A group of Mexican investors has bought a controlling stake in the debt-ridden carrier.

The group, Tenedora K, says it has acquired a 95 percent stake in the holding company of Mexico's largest airline, and that the pilots' union will hold the remaining 5 percent of the shares.

The deal was put together and announced by U.S. private equity firm Advent International, which is not investing.

The new owners says in a statement released by Advent, their goal for the carrier is "rescuing them from the critical financial and operating situation they are in." They say the acquisition is only a "first step."

Earlier this month, Mexicana filed for bankruptcy protection in Mexico and the U.S. with executives saying the carrier owes banks more than $199 million, though not disclosing the total debt.

Since that time the carrier has stopped selling tickets and suspended some flights.

The carrier blamed adverse affects from the outbreak of swine flu last year as one of the reasons for its financial woes.



Photo, abdallah, flickr
Filed Under: News

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
Lorenzo Alvarado

Our company that we booked through will not refund Mexicana's money they took for flight to Cancun. They told us to pay another carrier and re-book. Both of us are on fixed incomes and cannot afford this. Our trip is for December. Not good.

August 29 2010 at 11:26 AM Report abuse rate up rate down Reply

Don't Miss

Fotosearch

Take in the sights of autumn across the country.

Hit The Road
Corbis

Tales of learning to expect the unexpected.

Change Your View
Getty Images

Unexpected encounters and wildlife tours.

Cows, Sharks, Monkeys & More

Travel Careers

amtrak train conductor

See the world and interact with people from different cultures.

flight attendant plane interior

It's as crazy as you think.