Mexicana de Aviación’s Comeback: Government Finalizes Purchase and Hands Over Check to Employees

exicana de Aviación, which at one time was one of the most important airlines in Mexico and Latin America, has been acquired by the Mexican government in a deal closed for approximately 816 million pesos (~ USD 48 million), reports a El Financiero newspaper from Mexico City, citing close sources.

Ads

See also: «New» Mexicana de Aviacion Fleet and Routes Revealed

This acquisition culminates a lengthy process where the agreements for the transfer of rights to the airline’s brands and assets were finally signed on Wednesday, August 9.

The fourteen subsidiary brands and two buildings of the airline are included in the purchase package. According to El Financiero, the government plans to transform Mexicana into a low-cost and regional airline that will cover routes not served by private airlines.

See also: New Mexican state airline gets green light from Treasury

Ads

Representatives of the Mexicana de Aviación workers were summoned for Thursday morning, when President Andrés Manuel López Obrador will personally deliver the check that will mark the purchase.

The Secretariat of National Defense (Sedena) will be in charge of operating the new airline, and it is expected to begin flying in December of this year. Although the agreed amount does not cover the total liquidations of the employees, it represents a positive step in that direction.

With the delivery of the check, the workers will be able to move forward in the process to receive their liquidation. The payment will be made in two stages through the Federal Conciliation and Arbitration Board in Mexico City and the Special Boards in different cities of the country.

Mexicana de Aviación, founded in 1921, was one of the world’s oldest airlines and the first in Mexico. During its peak, Mexicana was a leader in the Latin American market, operating numerous national and international routes. However, the company faced financial problems aggravated by management and competition. In 2010, the airline suspended operations due to insolvency.

See also: Volaris and Viva Aerobus Expand Fleets with New Airbus A321neo Deliveries

Since then, there have been several failed attempts to revive it, but the Mexican market has been evolving to be now dominated by two low-cost carriers, Volaris and Viva Aerobus, while Aeroméxico continues to lead the international segment and the absence of two airlines that closed their operations after the pandemic, Interjet and Aeromar, is still felt.