Mexicana not selling mainline tickets

[GuppyWN]

??? I don't think I am quite following you. Or maybe my coffee hasn't set in yet.

I was making reference to pilots thinking we know how to run the airline. United, Delta, AA etc should swoop in and take the Mexicana routes.

Gup

 

[St. Nic]

I've been through this first hand and do not wish it on anybody- the huge cuts, the furloughs, the uncertainty. Some white knight will come along and keep the company solvent yet the pilots will stay on bankruptcy wages. It is sad how history repeats!

 

[Dornier 335]

Don't worry st. nic, I hear usapa is working their asses off to get an industry leading contract!:laugh: That is if they can find the time after stealing so many jobs from the west pilots, and keep themselves out of court for just a minute.

Ask the Delta rampers and gate agents in Mexico how much they were pressured by Atlanta to take a sub-standard contract. In their eyes this situation that MXA is doing to the pilots and f/a's is what Delta did to them a year ago or so.

BTW what does your enchanting USAPA comment have to do with MXA's situation? Take your personal diatribe somewhere else, there are plenty of dysfunctional threads out there.

(Ira furor brevis est)

 

[Lear70]

Moderator Hat On:

Scope Out RJ's suspended for 7 days for discussing an East/West issue in an non-related thread.

People have been fairly warned about this. The penalty WAS going to be 30 days, and will be after this. Going to be nice and only give Scope 7 days...

Knock it off. Keep threads on-topic.

/mod

 

[Dornier 335]

Mexicana's new owners appoint administrator, negotiate with unions
By Brendan Sobie

Mexicana's new owners have appointed an administrator to run the airline group as it tries to negotiate concession packages with the carrier's unions.

Tenedora K, a group of Mexican investors which acquired Mexicana's parent company at the end of last week, says in a 25 August statement that it has appointed Alejandro Rodriguez Mirelles as the company's administrator. Grupo Mexicana CEO Manuel Borja left the carrier at the end of last week.

Tenedora K also says in the statement it has reached an agreement with Mexicana pilots union ASPA covering the potential restructuring of the airline. It says it has also made progress in negotiations with the union representing Mexicana's ground staff including mechanics, SNTTTASS.

Rodriguez in the statement applauds the willingness of the carrier's pilots, ground personnel and non-unionised employees to forge new labour agreements and their recognition of the serious financial situation Mexicana currently faces.

However, Tenedora K says talks with the carrier's flight attendant union, ASSA, are not progressing. It claims the union has taken a different view compared with the other employee groups and has so far not been willing to negotiate concessions. ASSA was unavailable to comment.

Tenedora K says Rodriguez is coordinating the "possible rescue" of Mexicana's parent company, Nuevo Grupo Aeronautico (NGA). While only Mexicana mainline filed for bankruptcy protection early this month, Tenedora K has acquired the entire parent company including airline subsidiaries Click and Link.

Rodriguez has a financial background, formerly serving as director of investment banking for Mexican bank BBVA Bancomer. Tenedora K says this job involved restructuring bankrupt companies as well as dealing with mergers and acquisitions. Rodriguez also has served in management positions at various companies in the tourism, consumer goods and industrial sectors.

Tenedora K also says in the statement that NGA's financial situation and the impact of labour costs on the company's competitive position is "more serious" than it thought prior to acquiring the company on 20 August. But a Tendedora K spokesman declined to elaborate or say how much capital the new ownership group has so far put into Mexicana to keep it operating while a restructuring attempt is initiated.

Tenedora K says labour costs for all Mexicana employee groups need to be adjusted in order for the carrier to be competitive with other Mexican carriers and US carriers. It claims on average flight attendant costs at Mexicana are 32% higher than US majors and 100% higher than other Mexican carriers. It says lower labour costs are required for the carrier to be able to recover from the current situation and re-launch.

It adds the possible rescue of Mexicana by Tenedora K is dependent on the investment group being able to reach new agreements in the coming days with all the carrier's unions. While Tenedora K is attempting to restructure the entire company, including the Click and Link units, so far union negotiations have focused on mainline Mexicana as the labour costs at Click and Link are already relatively in line with labour costs at Mexico's low-cost carriers.

 

[Dornier 335]

The Plot Thickens ...

Mexicana’s new owners have not yet put forward any capital: Unions
By Brendan Sobie

Mexicana's new owners are apparently waiting to see if they can complete agreements with the carrier's unions before deciding whether to invest in the bankrupt carrier.

Investment group Tendora K purchased Mexicana parent company Nuevo Grupo Aeronautico (NGA) on 20 August and subsequently stated that new labour agreements are essential for the carrier to be rescued. Two of Mexican's unions tell Flightglobal that Tenedora K has not yet put any capital into the company, which means they have nothing to lose if they decide to walk away from the proposed rescue.

Tenedora K has declined to disclose how much it paid to acquire its 95% stake in NGA or how much it has so far has invested in the company. But former owner Grupo Posadas announced its 30% stake in NGA was sold to Tenedora K for a symbolic amount and Tenedora K is believed to have only paid a symbolic one peso for the entire 95% stake. The other 5% is still owned by Mexicana pilots union ASPA.

An ASPA spokesman says Tenedora K has not yet provided any capital and Mexicana is currently operating by relying mainly on credit which the government and government-owned companies have agreed to temporarily provide. He says this credit is allowing Mexicana and sister carriers Click and Link to receive fuel in Mexico and accrue navigation, airport services and other charges without pre-payment.

Private airport operators also were ordered by a Mexican court earlier this week to continue providing services to Mexicana although the company has not been paying its bills.

A spokesman for Mexicana flight attendants union ASSA also says "there's no investment from Tenedora K right now".

But unions acknowledge there is a risk that Tenedora K can walk away from the deal before investing any capital. Tenedora K has already stated that in closely examining the company's accounts since agreeing to buy NGA on 20 August, it has discovered the financial condition of the company is more severe than originally thought.

The ASSA spokesman says the union is also concerned Tenedora K has no interest in the airline industry and could be a short-term investor. But both the ASSA and ASPA spokesman say the unions are confident Tenedora K will be able to complete agreements with all the company's unions by early next week and once these deals are finalised the new owners will finally make an initial investment.

If Tenedora K decides to back out, it is expected the government would likely continue to provide the credit necessary to keep Mexicana operating while the unions lead the search for an alternative investor. The ASPA spokesman says other investors expressed interest in acquiring the company and spoke to the unions last week. But he says ASPA is currently only working with Tenedora K.

He says Click, Link and Mexicana are all currently operating roughly one third of their pre-bankruptcy schedules. As a result most employees are working reduced hours.

Employees also have not received any salary since Mexicana filed for bankruptcy early this month. The hope is employees and suppliers will later receive payment for services rendered during Mexicana's financial crisis.

The ASSA spokesman says the union has been told some flight attendants will receive next week a reduced salary for August of no more than 10,000 pesos ($770).

 

[Ky.BrownBourbn]

B727Driver, does she have a lot of pitch-down movement?

NO, but i bet she can float like an Airbus in the Hudson (nose Up)!
KBB

 

[Dornier 335]

Just found another site where MXA's death is announced:

Mexicana airline to shut down Saturday

Troubled airline blames high labour costs

Mexican interests launch new airline, Vuela
Mexico seeks bids to privatize two airlines
Slump, flu, visas prompt AeroMexico to withdraw from Canada

Published on Friday, Aug. 27, 2010 3:58PM EDT
Last updated on Friday, Aug. 27, 2010 4:29PM EDT


Mexicana de Aviacion, one of Mexico’s two major airlines, will cease operations by midday Saturday, Mexico’s Transport Minister Juan Molinar told reporters 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 cancelled 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.

 

[Ky.BrownBourbn]

NO, but i bet she can float like an Airbus in the Hudson (nose Up)!
KBB

I guess That's off topic, I may be getting suspended, see you guys after I get probation and I'm on work release!

KBB