Mexicana Sold

A group of Mexican investors organized under the name Tendora K has acquired 95 percent of Nuevo Grupo Aeronautica, the heavily-indebted holding company controlling bankrupt Mexicana Airlines and its two affiliates, Click and Link. The pilots union acquired the rest. Purchase price is reported to have been a “token amount.” Previously, the airline had been owned by the Posadas de México (Fiesta Americana and other hotels) plus some other investors.

If the airline is to survive, debts must be paid, additional investments made and operating costs substantially reduced. In recent weeks, Mexicana has been obliged to reduce its frequencies of service to the United States from 50 each week to 38. Under current conditions, these Mexicana can restore these, but only if it uses the same equipment. The FAA will allow no other Mexican airline to take over these routes until Mexico improves air safety inspections.

By Jimm Budd