MEXICO CITY — Mexicana de Aviacion, one of Mexico’s two major airlines, will cease operations by midday Saturday, Mexico’s Transport Minister Juan Molinar told reporters on Friday.
“At midnight, a gradual shutdown will begin,” Mr. Molinar said at a news conference. “By Saturday at noon, operations will definitively cease.”
Two budget carriers affiliated with Mexicana, Link and Click, will also stop flying, Mr. Molinar said.
The 89-year-old airline filed for protection from creditors at the beginning of the month but struggled to find a buyer willing to help restructure its $800 million debt load.
Plans to fire some 1,000 of its flight attendants to facilitate a takeover by a Mexican investment group were blocked earlier this week by the government.
Mexicana has already stopped selling tickets and has canceled flights to some destinations.
Mexicana controls many routes into the United States which would be among its most valuable assets. But restrictions slapped by U.S. aviation authorities on Mexico due to safety lapses mean Mexican airlines are not able to take over these routes for now.
Mexicana is part of the Oneworld alliance, whose members include American Airlines, British Airways and Lan among its members.
© Thomson Reuters 2010
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