Report: Mexicana, pilots reach deal on concessions

Mexicana Airlines and its pilots have reached agreement on a concessionary labor contract as part of an effort to save the struggling company, Reuters reported, citing media reports in Mexico. The carrier is operating under creditor protection in both Mexico and the US, and CEO Manuel Borja said last week that it is "looking for" a capital injection of "between $100 million and $150 million" (ATW Daily News, Aug. 12).

The US judge overseeing MX's Chapter 15 bankruptcy case said that the company has not planned for its post-bankruptcy life, failing to make "cash flow projections, [arrange] debtor-in-possession financing or…[demonstrate] how it expects to be able to pay for post-petition services," according to Bloomberg. He postponed a decision on whether to grant the carrier a preliminary injunction to prevent creditors from seizing its assets, making its mostly-leased aircraft fleet vulnerable to repossession.