Mexicana needs $100m to stay in the skies

Debt-ridden airline Mexicana de Aviacion needs a cash injection of at least US$100 million to keep flying, the company's chief executive said.

"What we are looking for is between $100 million and $150 million," chief executive Manuel Borja said in an interview with Radio Formula.

Time is ticking for troubled Mexicana, which has ceased flying more than a dozen international routes and stopped selling tickets after requesting creditor protection last week under Mexico's insolvency law, reported Reuters.

The company has yet to be declared bankrupt.

Mexicana pilots have not been getting paid since Sunday, their union said. Mexicana's financial troubles are already leading to lost sales at its sister regional airlines, Click and Link, as passengers avoid the two.

The airline's main shareholders and employees are separately looking for investors that can inject money into the ailing airline.

Analysts have suggested AeroMexico, the country's only other major airline, as a potential buyer.
(Source:www.cargonewsasia.com)