Mexicana files for Chapter 15 Bankruptcy in USA

[Jeffrey O'Neill]

I've had my direct flights from LAX to Puerto Vallarta on to SFO changed to indirect flights.

What do peopel think are my best options.

Seems Mexicana are not letting you cancel with a full refund. I'm just worried that over the next 3 months they will go from protection to death

[markis10]

Qantas have updated their Mexicana policy:

http://www.qantas.com.au/agents/dyn/...iver130810.pdf

Changes to Qantas Ticketed Bookings on Mexicana
Qantas Commercial Policy
12 August 2010
Mexicana is continuing to operate most of its scheduled international services as normal however it is not currently accepting new bookings.
Qantas customers with existing bookings on Mexicana-operated services will not be affected and can travel as planned. There may be slight variations to Mexicana’s schedule on codeshare services. Customers with existing bookings affected by these changes will be notified and accommodated on alternative services.
The following commercial policy outlines the options available to passengers holding a valid Qantas ticket for travel on or before 31 August 2010 who wish to make changes to their bookings.
Passengers may, without fee:
• Re-route travel to/from their original destination using alternate carriers American Airlines
(AA) and Alaskan Airlines (AS)
• Bypass original destination as a stopover point and continue to the next ticketed
destination via the most direct routing using Qantas, American Airlines (AA) or Alaskan
Airlines (AS)
Conditions
• All changes to travel dates must be made prior to 31 August 2010
• New travel dates must be prior to 31 August 2010
• The new flight must be for the same cabin/class of travel (eg First, Business or Economy)
• Booking Classes permitted for AA and AS
Cabin

[straitman]

Mexicana Resumes Some U.S. Services


Aug 12, 2010
By Darren Shannon darren_shannon@aviationweek.com
WASHINGTON
Mexicana’s management has started to make overtures to secure the financial stability of the bankrupt carrier, including an incentive to organized labor to accept a concessions package and the return of some domestic ticket sales.

The latest development also includes resumption of some services previously cut by the carrier as it scrambled to retain possession of its mostly leased fleet of aircraft when lessors began repossessing their assets.

[Dave Noble]

Mexicana to Return Eight Leased Planes; U.S. Judge Postpones Injunction

Compania Mexicana de Aviacion, Mexico’s biggest airline by passengers, agreed to return at least eight leased airplanes and a U.S. judge put off ruling on a bid to shield the company from creditors.

Mexicana to Return Eight Leased Planes; U.S. Judge Postpones Injunction - Bloomberg

[Jeffrey O'Neill]

I called Mexicana up and the guy I spoke to said he wasn't aware of the company being in bankruptcy protection.

They're pretty adamant they will not refund the fare.

Not sure how long they can last if they're handing back planes and not taking any new bookings.

Travel insurance doesn't cover me if they go out of business.

Would make life easier if they just canceled my flight now so I could rebook on a different carrier before the fares sky rocket in price.

Seems i'm cursed about mexico - last yr with swine flu

[samh004]

Doesn’t look like they know what they’re doing. Any chance the government might bail them out?

[straitman]

Aug 18, 2010

By Darren Shannon
Mexicana will return almost 40% of its mainline fleet to lessors under agreements brokered since its early August bankruptcy.


In this latest chapter of Mexicana’s ongoing saga, it will return 12 aircraft to GE Capital Aviation Services, including all 10 of the Airbus A318s currently operated by the carrier. Two A320s also leased by the General Electric division are being returned as well.


International Lease Finance Corp., which in court documents argued that Mexicana had illegally retained possession of its aircraft prior to the bankruptcy filings in Mexico and the U.S., also regains its Airbus narrowbody fleet, while AerCap sees the four Airbus narrowbodies it has left with the Mexican carrier also returned.

Another story as well:

Mexicana Future In Doubt


Aug 18, 2010

By Darren Shannon
Mexicana says the return of an unspecified number of aircraft to its lessors caused the airline to terminate several services over the weekend, but it is refusing to comment on local reports it will cease all operations on Aug. 17.

Confusion again dominates the carrier’s current predicament, with comments from the company noting a drop in frequencies but not destinations, contradicting airport operators, such as Sacramento County in California, which say the carrier on Aug. 14 canceled all services for at least the rest of the month.

[samh004]

Hopefully they can restructure and rebuild, even with a significantly smaller fleet. With their OW partners, at least they should have a bit of help, assuming primarily AA wants to help.

I hope when they do get back on their feet that they don’t lease from any of the companies that are giving them grief now.

[Mal]

They've been bought:

Mexican group buys ailing Mexican airline

A consortium of Mexican investors have acquired 95 percent of Mexicana de Aviacion airline, which earlier this month filed for bankruptcy protection, the investors group said Saturday.

...

the acquisition was only the first step of a process to recapitalize the ailing airline and bring it out of court-supervised bankruptcy protection.

[samh004]

It’s good to see someone in the country cares about the airline, no matter what their hidden motives are