Mexican plans to start operations on 11 routes

Airline Mexicana de Aviacion has made significant progress in its debt restructuring negotiations, and expects to resume flights "soon" with seven planes and 11 routes, reported Dow Jones Newswires.

Mexican, which was grounded last August amid bankruptcy proceedings, said in a press release that it expects to be operating 40 planes and more than 40 routes in the second half of 2011.

The company said it had reached agreements with enough creditors to carry out its restructuring, and that it should start selling tickets in coming days. Passengers who held tickets before the carrier's grounding will be able to redeem them under a mechanism to be announced, Mexicana said.

A slimmed-down Mexicana plans to restart with international service to Los Angeles, Chicago, San Antonio, and Havana, Cuba, and domestic flights to Guadalajara, Monterrey, Cancun, Oaxaca, Tuxtla Gutierrez and Veracruz. The company said it has 39 pilots, 80 flight attendants, and 846 maintenance technicians ready to begin operations.

Mexican authorities last year approved a restructuring plan for Mexicana presented by PC Capital, a local private equity firm. The airline has reached agreements with labour unions representing pilots, flight attendants, and ground staff, and said PC Capital has put together a group of investors to capitalise the airline, whose identities will be revealed once audits have been carried out and the restructuring formalised.
(Source:www.cargonewsasia.com)