Mexicana files for Chapter 15 Bankruptcy in USA

[Dave Noble]

Struggling airline Compania Mexicana de Aviacion filed for bankruptcy protection in the U.S. and Mexico Monday amid labor unrest and mounting financial woes.

Mexicana, which also sought protection restructuring under the Mexican equivalent of Chapter 11, filed for bankruptcy under Chapter 15 in a New York bankruptcy court to protect its U.S. assets from creditors.

The privately held airline, Mexico's largest, is asking Judge Stuart M. Bernstein of the U.S. Bankruptcy Court in Manhattan to issue a temporary restraining order to bar creditors from seizing its assets in the U.S.

Full article at Mexicana Airlines Files For Chapter 15 Bankruptcy In US

 

[JeniSkunk]

Full article at Mexicana Airlines Files For Chapter 15 Bankruptcy In US

I wonder what AA will do about the codeshares fares they reorganized with Mexicana recently due to the FAA downgrade to Mexico?
American Airlines Current Travel Notices On AA.com

Also, this has me wondering if Mexicana did their bankruptcy filing as payback against the US for the FAA downgrade to Mexico.

http://www.frequentflyer.com.au/community/travel-news/faa-downgrades-mexico-airports-24615.html

Jenifur Charne

 

[markis10]

No new bookings being taken:

Mexicana Update 06 August 2010

Mexicana is continuing to operate most of its scheduled international services as normal. However, it is no longer accepting new bookings.

Qantas customers with existing codeshare bookings on Mexicana-operated services will not be affected and can travel as planned.

There may be slight variations to Mexicana’s schedule on codeshare services. Customers with existing bookings affected by these changes will be notified and accommodated on alternative services.

At this stage, Qantas customers are unable to make new codeshare bookings on Mexicana-operated services until further notice. This situation is beyond Qantas’ control and we apologise for any inconvenience.

We encourage customers to consider other Qantas partner airlines, such as Alaska Airlines and American Airlines, which continue to offer services between the US and Mexico.

 

[straitman]

No new bookings being taken:

Mexicana Update 06 August 2010

Mexicana is continuing to operate most of its scheduled international services as normal. However, it is no longer accepting new bookings.

Qantas customers with existing codeshare bookings on Mexicana-operated services will not be affected and can travel as planned.

There may be slight variations to Mexicana’s schedule on codeshare services. Customers with existing bookings affected by these changes will be notified and accommodated on alternative services.

At this stage, Qantas customers are unable to make new codeshare bookings on Mexicana-operated services until further notice. This situation is beyond Qantas’ control and we apologise for any inconvenience.

We encourage customers to consider other Qantas partner airlines, such as Alaska Airlines and American Airlines, which continue to offer services between the US and Mexico.

Further to post #3 above.

Ailing Mexicana airline suspends ticket sales

By Ben Mutzabaugh, USA TODAY
A Mexicana airlines plane flies over Mexico City on August 3, 2010.


CAPTION

By Alfredo Estrella, AFP/Getty Images​

Mexicana suspended tickets sales Wednesday night, a move that comes two days after Mexico's largest carrier filed for bankruptcy protection. The Associated Press writes Mexicana "said it would continue operating flights for travelers who already bought them. The decision did not affect the company's Click and Link airlines, which fly routes only inside Mexico."

"People who already bought tickets will be able to fly," airline spokesman Armando Vera says to AP, though the news agency adds that "he didn't say how long [Mexicana] would continue honoring tickets."

 

[samh004]

Well that sucks for Mexicana, clearly they’re in a much worse position than initially thought. But it also sucks for OneWorld, they’ve recruited an airline that might cease to be, how useful. I hope their next 3 picks have something better to offer.

 

[AussieTim]

Well that sucks for Mexicana, clearly they’re in a much worse position than initially thought. But it also sucks for OneWorld, they’ve recruited an airline that might cease to be, how useful. I hope their next 3 picks have something better to offer.

Yes, not good for Oneworld at all, but personally even as a OW flyer I take Aeromexico if flying LAX-MEX, the mess that is landing in T1 is just not worth the status credits, and the Aeromexico business fares provide lounge access anyway.

 

[docjames]

Well this who scenario is no good as I have only had good experiences with Mexicana (including Click Mexicana).

My reading around this issue suggests the "end game" here is for Click Mexicana and the other MX subsiduaries to rise from the ashes of MX mainline due to the huge disparity of costs between the subgroups. All the debt has been loaded into mainline MX. The unions will not negotiate to cut costs, mind you the latest claim by MX (40% pay cut and 40% job losses to stay viable) is never going to fly either (pardon the pun). Once MX mainline "dies" they will reintate many of the better routes using Click Aircraft and crews / costs.

Fortunately Qantas have been somewhat better in managing the QF mainline costs when compared to Jetstar's or the same scenario could have played out here in Aus.

 

[samh004]

Mexicana Click is domestic only right, so it’s their international arm that’s let them down, sort of like JAL?

 

[notzac]

Am v disappointed to read about this; I really enjoyed my MX flights and it seems like it might be the last ones I take.

Mexicana Click is domestic only right, so it’s their international arm that’s let them down, sort of like JAL?

Mostly ... I think Link and Click operate a small number of short-haul international destinations, but it's mostly domestic. F'rinstance, I can still book CUN-HAV-CUN online as it's operated by MexicanaClick, though it looks like they're going to start cancelling flights soon, so who knows what's going to continue operating in the short-medium term.

 

[docjames]

Mexicana Click is domestic only right, so it’s their international arm that’s let them down, sort of like JAL?

Click is basically MX's short haul LCC arm (think : Jetstar, without the hassles!, and with some exceptions). They tend to target leisure routes but do also do some mainline. Until recently they were all Y seating Fokker 100s (with 35" pitch). I think they're now transitioning to 717s iirc.

 

[Jeffrey O'Neill]

I've had my direct flights from LAX to Puerto Vallarta on to SFO changed to indirect flights.

What do peopel think are my best options.

Seems Mexicana are not letting you cancel with a full refund. I'm just worried that over the next 3 months they will go from protection to death

 

[markis10]

Qantas have updated their Mexicana policy:

http://www.qantas.com.au/agents/dyn/qf/policies/MexicanaWaiver130810.pdf

Changes to Qantas Ticketed Bookings on Mexicana
Qantas Commercial Policy
12 August 2010
Mexicana is continuing to operate most of its scheduled international services as normal however it is not currently accepting new bookings.
Qantas customers with existing bookings on Mexicana-operated services will not be affected and can travel as planned. There may be slight variations to Mexicana’s schedule on codeshare services. Customers with existing bookings affected by these changes will be notified and accommodated on alternative services.
The following commercial policy outlines the options available to passengers holding a valid Qantas ticket for travel on or before 31 August 2010 who wish to make changes to their bookings.
Passengers may, without fee:
• Re-route travel to/from their original destination using alternate carriers American Airlines
(AA) and Alaskan Airlines (AS)
• Bypass original destination as a stopover point and continue to the next ticketed
destination via the most direct routing using Qantas, American Airlines (AA) or Alaskan
Airlines (AS)
Conditions
• All changes to travel dates must be made prior to 31 August 2010
• New travel dates must be prior to 31 August 2010
• The new flight must be for the same cabin/class of travel (eg First, Business or Economy)
• Booking Classes permitted for AA and AS
Cabin

 

[straitman]

Mexicana Resumes Some U.S. Services


Aug 12, 2010
By Darren Shannon [email protected]
WASHINGTON

Mexicana’s management has started to make overtures to secure the financial stability of the bankrupt carrier, including an incentive to organized labor to accept a concessions package and the return of some domestic ticket sales.

The latest development also includes resumption of some services previously cut by the carrier as it scrambled to retain possession of its mostly leased fleet of aircraft when lessors began repossessing their assets.

 

[Dave Noble]

Mexicana to Return Eight Leased Planes; U.S. Judge Postpones Injunction

Compania Mexicana de Aviacion, Mexico’s biggest airline by passengers, agreed to return at least eight leased airplanes and a U.S. judge put off ruling on a bid to shield the company from creditors.

Mexicana to Return Eight Leased Planes; U.S. Judge Postpones Injunction - Bloomberg

 

[Jeffrey O'Neill]

I called Mexicana up and the guy I spoke to said he wasn't aware of the company being in bankruptcy protection.

They're pretty adamant they will not refund the fare.

Not sure how long they can last if they're handing back planes and not taking any new bookings.

Travel insurance doesn't cover me if they go out of business.

Would make life easier if they just canceled my flight now so I could rebook on a different carrier before the fares sky rocket in price.

Seems i'm cursed about mexico - last yr with swine flu

 

[samh004]

Doesn’t look like they know what they’re doing. Any chance the government might bail them out?

 

[straitman]

Mexicana To Return Almost 40% Of Fleet

Aug 18, 2010

By Darren Shannon

Mexicana will return almost 40% of its mainline fleet to lessors under agreements brokered since its early August bankruptcy.


In this latest chapter of Mexicana’s ongoing saga, it will return 12 aircraft to GE Capital Aviation Services, including all 10 of the Airbus A318s currently operated by the carrier. Two A320s also leased by the General Electric division are being returned as well.


International Lease Finance Corp., which in court documents argued that Mexicana had illegally retained possession of its aircraft prior to the bankruptcy filings in Mexico and the U.S., also regains its Airbus narrowbody fleet, while AerCap sees the four Airbus narrowbodies it has left with the Mexican carrier also returned.

Another story as well:

Mexicana Future In Doubt


Aug 18, 2010

By Darren Shannon

Mexicana says the return of an unspecified number of aircraft to its lessors caused the airline to terminate several services over the weekend, but it is refusing to comment on local reports it will cease all operations on Aug. 17.

Confusion again dominates the carrier’s current predicament, with comments from the company noting a drop in frequencies but not destinations, contradicting airport operators, such as Sacramento County in California, which say the carrier on Aug. 14 canceled all services for at least the rest of the month.

 

[samh004]

Hopefully they can restructure and rebuild, even with a significantly smaller fleet. With their OW partners, at least they should have a bit of help, assuming primarily AA wants to help.

I hope when they do get back on their feet that they don’t lease from any of the companies that are giving them grief now.

 

[Mal]

They've been bought:

Mexican group buys ailing Mexican airline

A consortium of Mexican investors have acquired 95 percent of Mexicana de Aviacion airline, which earlier this month filed for bankruptcy protection, the investors group said Saturday.

...

the acquisition was only the first step of a process to recapitalize the ailing airline and bring it out of court-supervised bankruptcy protection.

 

[samh004]

It’s good to see someone in the country cares about the airline, no matter what their hidden motives are