Mexicana filed for bankruptcy Monday in the United States and Mexico. It issued a press release and called a press conference Monday evening to announce that “the company’s financial and labor situation is no longer sustainable.”Â The company stated that it sought bankruptcy protectionsÂ “to restructure its cost and insure the viability of the company.”
As part of the reorganization, Mexicana suspended some flights,Â reduced the frequency of a number of others; and made some flights previously nonstop connect through Mexico City.
The company cited their inability to reach an accord with both the flight attendants’ and pilots’ unions as the key issue in bankruptcy.Â Some experts say that the airline needed the bankruptcy filing to protect the aircraft from being repossessed by creditors.
Chapter 15 bankruptcy (A new type of Bankruptcy recently added as part of bankruptcy legislation) allows the company to continue operations, but gives it protection against creditors while it reorganizes.
Customers ticketed on Mexicana airlines should contact their agent