Mexicana files for Chapter 15 Bankruptcy in USA

[Dave Noble]

Struggling airline Compania Mexicana de Aviacion filed for bankruptcy protection in the U.S. and Mexico Monday amid labor unrest and mounting financial woes.

Mexicana, which also sought protection restructuring under the Mexican equivalent of Chapter 11, filed for bankruptcy under Chapter 15 in a New York bankruptcy court to protect its U.S. assets from creditors.

The privately held airline, Mexico's largest, is asking Judge Stuart M. Bernstein of the U.S. Bankruptcy Court in Manhattan to issue a temporary restraining order to bar creditors from seizing its assets in the U.S.

Full article at Mexicana Airlines Files For Chapter 15 Bankruptcy In US

[JeniSkunk]

Full article at Mexicana Airlines Files For Chapter 15 Bankruptcy In US

I wonder what AA will do about the codeshares fares they reorganized with Mexicana recently due to the FAA downgrade to Mexico?
American Airlines Current Travel Notices On AA.com

Also, this has me wondering if Mexicana did their bankruptcy filing as payback against the US for the FAA downgrade to Mexico.

http://www.frequentflyer.com.au/comm...rts-24615.html

Jenifur Charne

[markis10]

No new bookings being taken:

Mexicana Update 06 August 2010

Mexicana is continuing to operate most of its scheduled international services as normal. However, it is no longer accepting new bookings.

Qantas customers with existing codeshare 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.

At this stage, Qantas customers are unable to make new codeshare bookings on Mexicana-operated services until further notice. This situation is beyond Qantas’ control and we apologise for any inconvenience.

We encourage customers to consider other Qantas partner airlines, such as Alaska Airlines and American Airlines, which continue to offer services between the US and Mexico.

[straitman]

No new bookings being taken:

Mexicana Update 06 August 2010

Mexicana is continuing to operate most of its scheduled international services as normal. However, it is no longer accepting new bookings.

Qantas customers with existing codeshare 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.

At this stage, Qantas customers are unable to make new codeshare bookings on Mexicana-operated services until further notice. This situation is beyond Qantas’ control and we apologise for any inconvenience.

We encourage customers to consider other Qantas partner airlines, such as Alaska Airlines and American Airlines, which continue to offer services between the US and Mexico.

Further to post #3 above.

Ailing Mexicana airline suspends ticket sales

By Ben Mutzabaugh, USA TODAY
A Mexicana airlines plane flies over Mexico City on August 3, 2010.


CAPTION

By Alfredo Estrella, AFP/Getty Images

Mexicana suspended tickets sales Wednesday night, a move that comes two days after Mexico's largest carrier filed for bankruptcy protection. The Associated Press writes Mexicana "said it would continue operating flights for travelers who already bought them. The decision did not affect the company's Click and Link airlines, which fly routes only inside Mexico."

"People who already bought tickets will be able to fly," airline spokesman Armando Vera says to AP, though the news agency adds that "he didn't say how long [Mexicana] would continue honoring tickets."

[samh004]

Well that sucks for Mexicana, clearly they’re in a much worse position than initially thought. But it also sucks for OneWorld, they’ve recruited an airline that might cease to be, how useful. I hope their next 3 picks have something better to offer.

[AussieTim]

Well that sucks for Mexicana, clearly they’re in a much worse position than initially thought. But it also sucks for OneWorld, they’ve recruited an airline that might cease to be, how useful. I hope their next 3 picks have something better to offer.

Yes, not good for Oneworld at all, but personally even as a OW flyer I take Aeromexico if flying LAX-MEX, the mess that is landing in T1 is just not worth the status credits, and the Aeromexico business fares provide lounge access anyway.

[docjames]

Well this who scenario is no good as I have only had good experiences with Mexicana (including Click Mexicana).

My reading around this issue suggests the "end game" here is for Click Mexicana and the other MX subsiduaries to rise from the ashes of MX mainline due to the huge disparity of costs between the subgroups. All the debt has been loaded into mainline MX. The unions will not negotiate to cut costs, mind you the latest claim by MX (40% pay cut and 40% job losses to stay viable) is never going to fly either (pardon the pun). Once MX mainline "dies" they will reintate many of the better routes using Click Aircraft and crews / costs.

Fortunately Qantas have been somewhat better in managing the QF mainline costs when compared to Jetstar's or the same scenario could have played out here in Aus.

[samh004]

Mexicana Click is domestic only right, so it’s their international arm that’s let them down, sort of like JAL?

[notzac]

Am v disappointed to read about this; I really enjoyed my MX flights and it seems like it might be the last ones I take.

Mexicana Click is domestic only right, so it’s their international arm that’s let them down, sort of like JAL?

Mostly ... I think Link and Click operate a small number of short-haul international destinations, but it's mostly domestic. F'rinstance, I can still book CUN-HAV-CUN online as it's operated by MexicanaClick, though it looks like they're going to start cancelling flights soon, so who knows what's going to continue operating in the short-medium term.

[docjames]

Mexicana Click is domestic only right, so it’s their international arm that’s let them down, sort of like JAL?

Click is basically MX's short haul LCC arm (think : Jetstar, without the hassles!, and with some exceptions). They tend to target leisure routes but do also do some mainline. Until recently they were all Y seating Fokker 100s (with 35" pitch). I think they're now transitioning to 717s iirc.