Mexican government closes deal for Mexicana de Aviacion and mulls resuming operations

In a decision expected by the workers of the failed company, the government of Andrés Manuel Lopez Obrador closed a deal to purchase the brands that make up Mexicana de Aviación, its training center and real estate that are part of the company’s remaining assets.

Ads

The total value of the purchase is 816,786,000 Mexican pesos, some 43 million dollars, which will be used to compensate the company’s workers who have been waiting for funds since the company’s closure in 2010.

Some 8,000 Mexicana employees are awaiting the lifting of the insolvency proceedings in order to have access to the funds obtained from the sale of the company’s assets. Although, according to union estimates, the agreed amount would only cover 10% of what is owed, the fact that the company has emerged from inaction is a good sign for them.

The Mexican government intends to create a new state-owned airline under the Mexicana brand, operated by the Ministry of National Defense (SEDENA). As previously mentioned, the idea is for the company to start operations this year and to have at least 10 aircraft in its fleet, including the controversial presidential Boeing 787, which could not find a buyer and which AMLO had even informally offered to Argentina.

No, gracias: Argentina rejects Mexico’s presidential Boeing 787 offer

Ads

Mexicana’s Training Center, a key asset

Mexicana’s Technical Training Center (Centro de Adiestramiento Técnico – CAT) represents a quarter of the value of the agreement, and stands out for the simulators it has, as well as the teaching resources for crews and auxiliary personnel.

The agreement does not include Mexicana’s important Maintenance, Repair and Overhaul (MRO) center, nor did it include some of the company’s buildings.

This is a developing story.