Mexicana: Resumes ticket sales, makes 'considerable progress' with unions

Mexicana Airlines, which is operating under creditor protection in both the US and Mexico, said yesterday it has restarted selling tickets via its website and ticket offices, and has "made considerable progress" in negotiations with its unions on concessions. The airline this month was forced to suspend mainline ticket sales and indefinitely cut 15 international routes owing to what it described in a statement as "the airline's cash flow problems and precarious financial situation" (ATW Daily News, Aug. 10).

Dow Jones reported yesterday that ticket sales by the airline have resumed and quoted an airline executive saying that third-party ticket sales through Amadeus would also resume shortly. But MX is still in serious trouble, CEO Manuel Borja said in a widely quoted interview on Mexican radio. "We've been operating for practically a week and a half without revenue," he said, adding that the company is "looking for" a capital injection of "between $100 million and $150 million."

MX said it has offered its workers a stake in a restructured company. It said it told its pilots and flight attendants that they "would be entitled to a share of the capital stock of Grupo Mexicana, the holding for Mexicana Airlines, MexicanaClick and MexicanaLink, and related companies such as MexicanaLoyalty and MexicanaMRO, proportionate to contributions made to the company by unions in their collective labor contracts." MX added that in addition to the labor concessions, "a complementary investment group would be invited on board to provide…the capital injection it needs to continue operating and secure its financial viability. This group would also be entitled to a share of the company’s capital stock. Prospective investors are currently being sought out." The carrier has around 8,000 employees.