Mexicana Airlines Suspends Ticket Sales

I’m not sure how not selling tickets is going to help with the bankruptcy proceedings, but then again, I’m not a bankruptcy expert.

What I do know, is that they sure do lease a large percentage of their 61 aircraft fleet. Depending on how those lease agreements are structured, they may come out of bankruptcy a much, much smaller airline than they were when they went in.

Amplify’d from www.bloomberg.com

Compania Mexicana de Aviacion, Mexico’s biggest airline by
passengers, stopped selling plane tickets as it seeks talks with
labor unions after filing for protection from creditors in
Mexico and the U.S.

The company, a unit of Grupo Mexicana de Aviacion, will
continue operating flights normally, according to an e-mailed
statement yesterday. Grupo Mexicana’s low-fare Click and Link
units will keep selling tickets, the company said.

“This decision will offer certainty and confidence to
consumers,” and help in negotiations with labor unions,
Mexicana said.

Lizette Clavel, secretary general of the Flight Attendants
Union of Mexican Aviation, in a phone interview yesterday said
that the suspension “doesn’t help with the negotiations.”
Fernando Perfecto, secretary general of the union that
represents Mexicana’s pilots, wasn’t immediately available to
comment, a spokesman said.

Creditors have seized three of Mexicana’s planes since July
29. The company owns only nine of the 61 airplanes it operates,
according to Chief Executive Officer Manuel Borja Chico.

The U.S. case is Compania Mexicana De Aviacion SA de CV,
10-14182; U.S. Bankruptcy Court, Southern District of New York
(Manhattan).

Read more at www.bloomberg.com