Corporacion Mexicana de Aviacion SA said lessor Air Canada seized two aircraft after a “misunderstanding” and a report that the Mexican carrier may file for bankruptcy.

The differences with Air Canada have since been resolved and all flights are operating normally, Armando Vera, a spokesman for Mexicana, said yesterday without elaboration. The airline earlier canceled two flights from Montreal and Calgary, Canada to Mexico City.

The flights were canceled after a creditor asked Canadian authorities to take grounding actions to clarify “rumors” about the company’s debts, the airline said. El Universal newspaper reported yesterday that the carrier told unions representing pilots and flight attendants that it’s considering filing for bankruptcy, a sale to the unions or a restructuring plan.

Vera said he couldn’t comment on the airline’s financial situation. Mexicana’s shareholders are scheduled to meet today, he said. Isabelle Arthur, a spokeswoman for Air Canada, didn’t return phone and e-mail messages yesterday after normal business hours.

The government had no role in the matter, Transport Canada said yesterday in an e-mailed statement.

Passengers on the canceled flights were transferred to other services.

DATE:30/07/10
SOURCE:Air Transport Intelligence news
FAA downgrades Mexico’s safety rating
By Lori Ranson

FAA has determined that Mexico is not in compliance with ICAO safety standards and has downgraded the country's safety rating from category 1 to category 2.

The agency through it international aviation safety assessment programme ensures civil aviation authorities of countries with carriers operating to or wishing to launch service to the USA meet ICAO standards, not FAA regulations.

"With the IASA Category 2 rating, Mexican air carriers cannot establish new service to the United States, although they are allowed to maintain existing service," says FAA. Countries assigned a category 2 rating either lack laws or regulations necessary to oversee air carriers in accordance with international standards, or that the country's civil aviation authority is deficient in one or more areas including technical expertise, record keeping or inspection procedures.

The agency further explains while Mexico has been responsive to its findings, and has made significant improvements in recent months, it is not able to fully comply with international standards.

FAA does state Mexico continues to make progress, and the agency is committed working with the Mexican government to regain its category 1 rating.

red323 wrote:I am not aware of Air Canada leasing any aircraft to Mexicana.... we don't even own our own!


You are also leasing a whole bunch of RJs to Jazz.

red323 wrote:I am not aware of Air Canada leasing any aircraft to Mexicana.... we don't even own our own!


You are also leasing a whole bunch of RJs to Jazz.

Martin Tamme wrote:Air Canada A319 Fins #288 (C-GITT), #290 (C-GJTA), #292 (C-GJVY) and #295 (C-GKNW) are sub-leased to Mexicana.

The firm blames its bankruptcy on onerous labour contracts, under which it says pilots earn 49% more than their counterparts at big American airlines.

Mexicana Airlines (Grupo Mexicana) suspends its operations indefinitely

The current administration received the company seven days
ago under Business Reorganization (Concurso Mercantil) and
technically bankrupt.

Financial deterioration and lack of agreements force Grupo Mexicana to stop flying.

Grupo Mexicana deeply regrets all inconveniences caused to
its passengers.

Press Releases
Press Release 11: Grupo Mexicana suspends flights until further notice
Press Release 10: Grupo Mexicana adjusts operations of its three airlines
Press Release 09: Mexicana Airlines Temporarily Reinstates Mexico City-Caracas Route
Press Release 08: Pilots and flight attendants to participate in capital stock of Grupo Mexicana
Press Release 07: Mexicana AIrlines to reduce flights

Grupo Mexicana suspends flights until further notice
Current management received the company in a state of technical bankruptcy seven days ago after it filed for protection under Mexico’s insolvency laws

Financial deterioration and lack of agreements force Grupo Mexicana to stop flying
Grupo Mexicana deeply regrets any inconvenience caused to passengers
Mexico City, August 27, 2010. Nuevo Grupo Aeronáutico, S.A. de C.V. ("Grupo Mexicana") announced this morning that as a result of the group’s delicate financial situation when it changed owners a week ago, compounded by failure to reach agreements that would allow for the capitalization of its three airlines, Mexicana Airlines, MexicanaClick and MexicanaLink flights will suspend operations until further notice as of midday (12:00 p.m.) on Saturday, August 28, 2010.

Among the factors that have contributed to this announcement are:

Grupo Mexicana’s fragile financial situation, which has deteriorated further over the last four weeks due to the previous management’s decision to suspend ticket sales, forcing the company to continue operating in the interests of passengers without receiving any revenue.
No substantial agreements were reached to give companies in the Group long-term viability.
Lack of effectiveness in the insolvency (Concurso Mercantil) process intended to protect additional financial resources available to the company so it could to continue operating.
Given the uncertainty of the situation, certain suppliers have begun demanding advanced payment of services that are essential to the airlines’ operations.
Today’s decision is a painful one for the 8,000-strong Grupo Mexicana family, but we will continue seeking out ways of securing the company’s long-term financial viability, so our passengers can once again enjoy the quality services they are accustomed to. We hope to be back in the air soon and would like to thank everyone involved in this process for their support and understanding.

If you have bookings or/and have paid for a Grupo Mexicana flight and have a reservation code, we would like to inform you that:

All Mexicana, MexicanaLink and MexicanaClick flights will be suspended until further notice as of midday on Saturday, August 28, 2010. All flights programmed to depart after this hour will be canceled.
Grupo Mexicana deeply regrets any inconvenience this decision may cause and will continue to assist passengers to the full extent of its abilities. Passengers who have already flown a leg of their journey and who are scheduled to fly with a Grupo Mexicana airline after Saturday, August 28, 2010 are advised to consult the websites or contact us at the numbers listed below. Priority will be given to minors traveling unaccompanied, passengers traveling with children under age 3 and special needs passengers.
If you have not yet begun your journey, we recommend you make alternative travel arrangements.

For information on how to apply for a refund, visit mexicanainforms.com (Tickets issued in the United States and Canada; - Tickets issued in Mexico and the Rest of the World), or contact us at any of the numbers listed below:
5448-8634
5998-5998
in Mexico City

01800-837-6150
01800-801-2010
from anywhere in Mexico

1-888-882-9994
1-877-801-2010
from the U.S. or Canada

In other countries please contact the local Mexicana office.