Mexicana's Bankruptcy Affects Flights To Costa Rica
Mexicana airlines’ financial conditioned worsened on Monday as the airline filed for bankruptcy protection, forcing the cancellation of flights to and from Mexico and Costa Rica, Brazil and Argentina. Flights to Europe were also cancelled.
The airline says that flights will be reduced to “a minimum” over the coming says.
It is unknown as yet how flights to Costa Rica will be affected. The airline operates several flights daily to Mexico City and Cancun, Mexico.
Company officials in Costa Rica would comment, but it is expected that the Mexico City flight will continue for now.
“Mexicana Airlines will be forced to cancel certain flights over coming days to optimize available resources and ensure that priority is given to homebound passengers,” the company said in a statement.
Mexico’s largest airline by passengers, Mexicana filed for bankruptcy protection in Mexico and the U.S. last week, blaming the decision on the high cost of labor. The company, a unit of Grupo Mexicana de Aviacion, had been in talks with its unions to lower expenses.
Immediately afterward the carrier was suspended from using the International Air Transport Association’s ticketing and settlement systems because it failed to make the required security deposit required for an airline in bankruptcy. That strangled the company’s cash flow further.
Meanwhile, the Federal Aviation Administration downgraded the safety category for Mexican airlines, banning the country’s airlines from launching new service to the U.S. or from codesharing with domestic airlines, which allow customers to purchase tickets as if the carriers operated as one.
Mexicana is a member of the Oneworld alliance and has a codeshare agreement with AMR Corp.’s