Mexicana's financial situation 'deteriorated substantially,' cuts 15 routes

Mexicana Airlines.

Mexicana Airlines said in a statement Sunday that its "financial situation has deteriorated substantially in the last week" and announced it is suspending 15 international routes effective yesterday and today.

MX last week filed for creditors' protection in both Mexico and the US, but at first said it would "render services normally" through the restructuring process (ATW Daily News, Aug. 5). However, it soon suspended all mainline ticket sales, though it said it would continue operating flights to carry passengers that had already booked tickets. But the airline said in its latest statement that "a series of events…have strangled the cash flows the airline needs to finance its day-to-day operations."

It said IATA's decision to suspend its BSP sales channel forced it "to suspend the sale and issuing of tickets indefinitely, with serious repercussions for MexicanaClick and MexicanaLink sales." Previously, MX had said that domestic subsidiaries Click and Link would be "unaffected" by the restructuring.

The carrier said it has suspended operation of all flights from Mexico City to Madrid, London Gatwick, Sao Paulo, San Jose (Costa Rica), Caracus, Bogota, Montreal and San Antonio. Also suspended are Cancun-San Jose (Costa Rica), Zacatecas-Chicago O'Hare, Guadalajara-Fresno and a Bajio-Monterrey-ORD routing.
MX said it is "determined to make an effort to continue operating… It is hoped an agreement will be reached with union leaders and that additional resources can be obtained to secure the financial viability of the carrier." It said passengers should "consider alternatives" to MX when making air travel plans "in the immediate future." The company has said it needs steep concessions from its pilots and flight attendants to remain viable.