Mexicana Airlines also known as Grupo Mexicana, the largest airline group in Mexico (also known as the nationally flagged carrier) has suspended all operations as the investor group which promised to turn around the fortunes of the failing airlines failed to reach a cost-cutting agreement with the unions and suspended operations. While Mexicana is known for its domestic routes within Mexico, the airline has 15 routes serving the United States including non-stop service between Denver International to Mexico.
While the bankruptcy has been known for a while as a previous article mentioned Mexicana seeking bankruptcy protection from US and Mexican courts, at the time of publication the Mexican government has indicated it will not bail out the airline as it has done during past bankruptcies.
As with many airlines the issue seems to be cost-cutting and agreements with the unions. The investors brought into Mexicana last week mentioned specifically the high-salaries of employees as a major impediment to airline operations. It has been reported salaries for Mexicana employees is 30% higher than comparable airline salaries in the United States and double those of Mexico's low-cost airlines.
While Mexicana has suspended operations indefinitely, the web site has links to apply for refunds concerning unused tickets and credit card companies which may have provided ticketing support should be able to provide additional assistance (of note, Mexicana is one of the preferred airlines of American Express Platnium and Centurion Travel Desks). At this time it is unknown if other airlines will honor Mexicana issued tickets.
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