Bankruptcy

Mexico flagship airline Mexicana declared bankrupt

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MEXICO CITY, Mexico–Mexicana de Aviacion (known as Mexicana Airlines) which suspended flights four years ago due to its heavy debt load, was declared bankrupt on April 5th, paving the way to dismantle the iconic company, once one of Mexico’s top two carriers. About 30 investors sought for more than three years to rescue the airline, which has an estimated debt of $1 billion, but none proved to have the necessary funds. On Friday the 5th, the communications and work ministries said the courts had approved an agreement to proceed with the bankruptcy presented by Mexicana’s majority creditors: Mexican bank Banorte, development bank Bancomext and Mexico’s International Airport. The statement revealed no details of the agreement among creditors of Mexicana, which stopped flying 90 years after it was founded. Mexicana’s MRO maintenance base, valued at between $80 million and $100 million, will continue operating. Resources it obtains will go toward a trust that benefits Mexicana’s 8,000 workers and 600 retirees. Mexicana’s three major unions are considering a challenge to the declaration of bankruptcy, local media reported. Most of the routes once operated by Mexicana have been taken by AeroMexico, Interjet and VOLARIS.

Mexicana Airlines declared bankrupt.
Mexicana Airlines declared bankrupt.
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Latin Faded Glory

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Panamena Internacional de Aviacion (PAISA) operated a DC-9 in the late 1960s between Panama City-Tocumen and San Jose and Bogota. The airline lasted only a couple of years,
Panamena Internacional de Aviacion (PAISA) operated a DC-9 in the late 1960s between Panama City-Tocumen and San Jose and Bogota. The airline lasted only a couple of years.

MIAMI, Florida. —  Since the first years of civil aviation in Latin America, many airlines and flag carriers have come and go. Today household names like Mexicana, VARIG and VIASA are simply things of the past. A total of 72 international airlines have dissapeared, went bankrupt, absorbed by bigger carriers or merged into other ones. Here some of those airlines that are part of the Latin glory: ACES, Aero California, AeroCancun, Aero Caribe, Aero Costa Rica, Aerocondor Colombia, Aerocondor Peru, Aero Continente, Aeronica, Aeroperlas, AeroPeru, Aeroposta Argentina, Aeroquetzal, Aero Republica (absorbed by COPA), Aerosur, Air Aruba, Air Bahama, Air Guadaloupe, Air Haiti, Air Jamaica (absorbed by Caribbean Airlines), Air Martinique, Air Santo Domingo, Aires, ALM, APA Dominicana, Avensa, Aviandina, Aviateca (absorbed by TACA), BWIA, Dominicana de Aviacion, Ecuatoriana de Aviacion, Faucett Peru, Guyana Airways, HALISA, ICARO, Intercontinental de Aviacion, JD Valenciana, LACSA (absorbed by TACA), LADECO (merged into LAN), LANICA, LAP, LAPA, LaTur Mexico, Lloyd Aereo Boliviano, Mayan World Airways, Mexicana de Aviacion, National de Chile, NICA (absorbed by TACA), PAISA, Panagra, Panair do Brasil, PLUNA, Prinair, SAETA, SAHSA (absorbed by TACA), SAM (merged into Avianca), SAN, Servivensa, SOL Air/Aero Honduras, Southern Winds, TAESA, TAN, TANSPeru, Tikal Jets, TransBrasil, TransPeru, Universal Airways, VARIG, VASP, WayraPeru, West Caribbean and Zuliana de Aviacion.