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Mexicana in need of up to USD150m to survive

11-Aug-2010 1:55 PM

Mexicana’s CEO Manuel Borja, stated the carrier requires a cash injection of between USD100 million and USD150 million to keep it flying (Reuters/AP, 10-Aug-2010). The carrier also restored its Mexico City-London and Mexico City-Madrid routes after suspending a number of services on the weekend.

Mexicana offered its pilots and flight attendants unions a stake in the carrier in exchange for new labour terms (Bloomberg, 11-Aug-2010). The carrier said it is inviting a group of “complementary investors” and that current stakeholders are willing to dilute their participation in the company. The pilots union is reportedly interested in buying a stake and would modify its contract to secure a deal.