Mexicana Ceases All Operations

Mexicana Ceases All Operations

August 30, 2010

Grupo Mexicana has ceased all operations.  All flights operated by Mexicana, MexicanaClick, and MexicanaLink are canceled.  Ticketed passengers should contact Exito immediately to file for a refund, and find new tickets on alternative carriers.

Mexico’s largest airline, last year Mexicana transported over 11 million passengers. The airline operated 69 planes under the Mexicana brand and 35 aircraft under MexicanaClick, which it started in 2005. MexicanaLink, a separate unit unveiled last year, had 15 planes.

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.

It is unclear whether the shutdown will be permanent.  Company spokesmen have indicated that Mexicana’s new owners (a group of Mexican investors called Tenedora K) intend to restructure and relaunch the company; however, many industry analysts are pessimistic about their chances for success.

While a number of other carriers serve many of Mexicana’s destinations, the sudden loss of that much capacity to Mexico will probably result in rising prices, particularly for holiday travel.  In addition, some routes will now be left underserved.  The London-Mexico City route, for example, is now only served by British Airways.

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