Mexico says not to rescue failing private airline

14:30, August 06, 2010      

Email | Print | Subscribe | Comments | Forum 

The Mexican government will not bail out Compania Mexicana de Aviacion (CMA), a private airline facing a debt crisis, Mexican Economy Minister Bruno Ferrari said on Thursday.

"We have no knowledge of any possible rescue," Ferrari told reporters at the National Trade Service and Tourism Chamber meeting. "We are paying close attention to what we must do," he added.

The CMA, owned by hotel chain Grupo Posadas, stopped selling tickets on late Wednesday. Customers holding bookings are being served by other airlines.

According to radio reports, the firm owes more than 1.6 billion pesos(127.4 million U.S. dollars) to creditors, and is involved in a wage dispute with staff over pay cuts.

The CMA has been granted bankruptcy protection by a bankruptcy judge and must reach an agreement with its creditors within one year, local broadcaster Formato 21 said. Otherwise, it risks being shut down.

The airline, with 69 aircraft in total, carries around 22,000 passengers each week on average. It serves international flights to Britain, Spain, Canada, the United States, the Caribbean and South America.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion