The Mexican government banned all state entities from entering into new commercial contracts with Calafia Airlines for a period of six months, according to the Official Journal of the Federation (DOF). It also imposed a fine on the company, although the amount was not disclosed.
As of the resolution, the agencies and entities of Mexico’s Federal Public Administration will not be able to accept proposals or enter into commercial agreements with the operator. Neither may public management companies nor the country’s federal entities do so.
All federal and state entities must refrain from entering into new contracts with the company as of August 16th and for a period of six months. However, both existing contracts and those being formalised until August 15th are excluded from the ban.
The sanction includes new commercial proposals and any type of contract related to acquisitions, leases, services or public works between the Mexican state and Calafia Airlines, both directly and through intermediaries. The situation could be extended if the company does not pay the fine within the established period. In that case, “the disqualification will continue until the corresponding payment is made”, the official document stated.
Calafia Airlines’ current plight
Founded in 1993, the airline has its main base at San José del Cabo International Airport (SJD) in Baja California Sur. It serves mostly the Baja California peninsula and the northern Mexican Pacific.
It is the smallest of the country’s commercial airlines: during the first half of this year, it carried 72.491 passengers. During 2021, the company had carried 153.535 passengers, according to the Federal Civil Aviation Agency (AFAC).
It currently operates around 91 weekly flights on 16 different routes. It has a fleet of regional jets consisting of two Embraer 120ERs, three Embraer 145ERs and one Embraer 145LR.
Like other regional airlines, such as Magnicharters and Transportes Aéreos Regionales, Calafia Airlines has been facing financial problems since the beginning of the pandemic. The situation contrasts with the steady recovery of the country’s largest operators in recent months.
The difficulties, however, have been ongoing since 2019, when the company lost a Cessna 208 Caravan flying between Hermosillo and Guerrero Negro in a crash that claimed the lives of the aircraft’s pilot and the only passenger on board.
