Mexicana Files For Bankruptcy

The airline has proposed salary cuts and staff reductions but said it would "continue to operate as normal."

By Scott Weber
|  Tuesday, Aug 3, 2010  |  Updated 7:23 PM PDT
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Debt-ridden Mexicana de Aviacion, Mexico's largest air carrier, says it has filed for Chapter 15 bankruptcy protection after failing to reach a new labor agreement with pilots and flight attendants.

Mexicana says in a statement it filed for bankruptcy Monday in a Mexico City court "to restructure its cost and insure the viability of the company."

According to the company's website, the airline will "continue to operate as normal" but certain routes have undergone changes. If passengers were booked on an affected flight scheduled to depart within the next 48 hours, the site claimed an airline representative would contact them.

The airline has proposed salary cuts of 41 percent and 39 percent for pilots and flight attendants, respectively, and a 40 percent staff reduction to keep the company afloat.


 

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