Mexicana Airline flights suspended as of today

United States Consulate General Guadalajara
PLEASE CIRCULATE THIS IMPORTANT ANNOUNCEMENT TO
AS MANY AMERICAN CITIZENS AS POSSIBLE
SUBJECT: SUSPENSION OF MEXICANA AIRLINES FLIGHTS
Date: August 28, 2010

Guadalajara Warden Message
Mexicana Airlines (Nuevo Grupo Aeronautico, S.A. de C.V.) has announced that, effective at noon, Saturday, August 28, 2010, Mexicana Airlines will suspend all flight operations until further notice. The suspension applies to all Mexicana, MexicanaLink, and MexicanaClick flights. All flights scheduled to depart after this time will be cancelled indefinitely.
In a press release on the company’s website, www.mexicana.com, the airline pledged to assist passengers to the best of its abilities. Passengers who have already flown a leg of their journey are advised to consult the company’s website for further information. The company notes that priority assistance will be provided to “minors traveling unaccompanied, passengers traveling with children under age 3, and special needs passengers.” Individuals who have not yet begun their journey on one of the Mexicana airlines are recommended to make alternative travel arrangements.
The Department of State advises all travelers with reservations on Mexicana, MexicanaLink or MexicanaClick to consult the company’s website for additional guidance and contact information for the airline. Passengers who may become stranded in the middle of their journey and who require assistance beyond that provided by the airline should contact their nearest Embassy or Consulate. While the U.S. Government cannot provide immediate repatriation assistance, it can assist with alternate arrangements as appropriate.
______________________
U.S. Consulate General Guadalajara
175 Progreso Street; Col. Americana
Guadalajara, Jalisco, Mexico
011 52 33 3268 2100
http://guadalajara.usconsulate.gov/
The Consulate office hours are Monday through Friday
from 08:00 a.m. to 04:30 p.m. (except from Mexican and U.S. holidays).

Here is why:

MEXICO CITY — Debt-ridden carrier Mexicana and its domestic subsidiaries will begin suspending flights midnight Friday and halt all operations by the next day as it seeks to restructure costs, Mexico's transportation secretary said.

The country's biggest airline is forced to shut down because it does not have enough money to keep flying, Juan Francisco Molinar Horcasitas told reporters.

But Mexicana de Aviacion "is in a process that should lead to restructuring," Molinar said. He declined to say give specific details of Mexicana's financial situation.

The airline filed for bankruptcy protection in Mexico and the United States on Aug. 2, and later stopped selling tickets and suspended some flights.

Executives said this month that the company needed an infusion of at least $100 million to keep flying, and on Aug. 21 a group of Mexican investors called Tenedora K announced it had bought a 95 percent stake in Grupo Mexicana, which controls Mexicana and the domestic airlines MexicanaClick and MexicanaLink. All three airlines will be grounded by Saturday afternoon.

On Friday, Mexicana said in a statement on its website that current management received the airline "in a state of technical bankruptcy."

In court filings, Mexicana said it was badly hit by the swine flu outbreak last year that scared away travelers for months and by the global economic slowdown. The airline added that high jet fuel prices and labor costs contributed to its financial troubles.

Before the bankruptcy filing, the company unsuccessfully sought union agreement on pay cuts of 41 percent for pilots and 39 percent for flight attendants, along with a 40 percent reduction in employees, saying both were needed to keep the company afloat. Labor leaders rejected the proposal, saying their members already agreed to cuts in 2006.

"The financial deterioration and lack of an agreement are forcing Grupo Mexicana to stop flying," Mexicana said in its statement.

Pilots' union president Fernando Perfecto said halting operations "is necessary to achieve a neat and orderly restructuring that gives us all the opportunity to relaunch Mexicana."

Flight attendants' union president Lizette Clavel did not rule out job cuts as part of future negotiations but said they must be within the current collective agreement.

Mexicana flies to more than 65 national and international destinations, including the United States, Canada, Central America, South America and Europe. It transported 11.1 million passengers in 2009, according to the company's website.

Sorry I pasted all the other stuff on the original post. I was in a hurry to get the word out in case anyone was flying Mexicana soon. I edited and cut out the unnecessary stuff. With the new ownership I hope they will be back in business. I know many people holding Mexicana tickets.