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In one of the most significant airline bankruptcies of the year, Mexicana de Aviacion has announced it is ceasing operations on all three of its branded airlines based in Mexico tomorrow. The airline group is the largest in Mexico. Mexicana, MexicanaLink, and MexicanaClick will not be operating flight tomorrow and into the future, unless the new owners of the airline group acquire the funds to do so (which is very slim). After failing to gain concessions from labor unions and balancing finances by cutting routes, the new owners decided it was better to shut down the airline.
The Mexicana Airlines have a fleet of 110 planes and was the oldest airline in North America dating back to 1921 still under the Mexicana name. The airline carried 11 million passengers and was a member of the One World Alliance that includes United States carrier American Airlines. Its two largest hubs were in Mexico City and Guadalajara. In the United States, it largest operations were in Los Angeles where it was the largest foreign airline.
If you have tickets on Mexicana, call the airline immediately!!!! I hope you booked by credit card and try to get re-routed onto other airlines.
Aeromexico is now the remaining major airline from Mexico that offers flights to the USA and other international countries from Mexico. Volaris is a small and growning low cost airline with 21 planes using a Southwest model that will likely grow now. American, Alaska, Continental, Delta, United, US Airways, etc... will continue to offer their flights from the states to Mexico and likely grow.
Maybe cause no one wants to go there and risk one's life?
I love these ignorant statements. We've been to Mexico twice so far this year and plan on going back later this year. I know plenty of others that have been as well. You have a higher chance of being a victim of random violence in your own neighborhood than in Mexico. I can't imagine living my life with such fear, you must be a blast to hang out with!
This is really surprising that an airline company is just shutting down. The smarter thing should of been, filing a Chapter 11 to put off paying debtors, and continue operating.
I think there is more to the story....
Not that I know a lot about airlines, last year in the stock market lost "big time" with Mesa Airlines based in AZ. This airline downsized big time and filed bankruptcy to continue operating. New exclusively operating in Hawaii.
Even though Mesa is trading on the Pink Slip exchange around $00.03 a share - know bankruptcy protection can last min of 5 years, also it's going to be another 18 months (my opinion), before the economy is operating in the plus. Vision this airline as the little engine that could, it has been around since the 1980's......
I did not sell my shares in Mesa, think this stock could turn around.
This is really surprising that an airline company is just shutting down. The smarter thing should of been, filing a Chapter 11 to put off paying debtors, and continue operating.
I think there is more to the story....
Not that I know a lot about airlines, last year in the stock market lost "big time" with Mesa Airlines based in AZ. This airline downsized big time and filed bankruptcy to continue operating. New exclusively operating in Hawaii.
Even though Mesa is trading on the Pink Slip exchange around $00.03 a share - know bankruptcy protection can last min of 5 years, also it's going to be another 18 months (my opinion), before the economy is operating in the plus. Vision this airline as the little engine that could, it has been around since the 1980's......
I did not sell my shares in Mesa, think this stock could turn around.
My $00.02....
1) Mexicana is organized under MEXICAN law, not US law and therefore, Chapter 11 would not be an option.
2) Your stock will NEVER recover. In general, before companies leave Chapter 11 protection, the old stock is canceled and nearly all equity holders lose their entire interest in the airline. So should they survive, most of the new stock will be issued to the CURRENT DEBT HOLDERS as they have preference to any stockholders under US Bankruptcy Code.
Mesa Air Group - Restructuring (http://www.mesa-air.com/restructuring/investorQA.asp - broken link)
3) The prognosis is not good as they lost major contracts with Delta and United Airlines which led to the grounding of half their fleet.
Location: The Raider Nation._ Our band kicks brass
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Originally Posted by MAK802
I love these ignorant statements. We've been to Mexico twice so far this year and plan on going back later this year. I know plenty of others that have been as well. You have a higher chance of being a victim of random violence in your own neighborhood than in Mexico. I can't imagine living my life with such fear, you must be a blast to hang out with!
My Mexican brother inlaw has been in touch with his family in Cancun. He cancelled his vacation, and won't be going to Mexico for a while. He says it is much worse than what we are hearing.
So how many American tourists have been murdered in Mexico this year? How many Americans were murdered in their own country this year? Anyone want to research and post the numbers? It's the fear of random violence that scares people, even when the fear is unfounded. Two people are murdered and drama ensues. Meanwhile, hundreds a day are murdered at the hand of Americans in this country! It's like the plane crash thing...so many are afraid of flying but get into a car with no problem. I think it's safe to agree that many more people die in car crashes annually than in plane crashes.
My friend just got back from her 2 week honeymoon in Cancun. They had a blast.
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