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Friday, June 3, 2011

MEXICO - Time running out to save Mexicana

MEXICO CITY -– Javier Lozano Alarcón, the Secretary of Labor (STPS) said Wednesday that just two months before the end of the bankruptcy proceedings of Mexicana de Aviación, the companies interested in buying the airline have yet to prove they possess the solvency to sustain the company.

During the the Sixth Conference on Employment and Development, which was organized by the Institute of Employment Research and the World Bank, Lozano Alarcón warned that if in the next few weeks none of the investors fulfill the requirements to buy the airline, including the investment of US$250 million, the company will start filing for bankruptcy.

In this regard, he reiterated that the federal government is not considering rescuing the company or investigating it. “The problem here is that the company is private. The federal government cannot get involved in any way,” he said.

He also said that the Mexican government is not enticing Mexicana de Aviación to file for bankruptcy to benefit other airlines. “We have been working every day to make sure that the company goes back on the market, however, the notion that we are coaxing the company to file for bankruptcy is a lie,” the Secretary said.

Lozano Alarcón also said that the airline’s former employees should not get their expectations up. “I’m sure the company will prevail in the end, but the employees should not expect the government to save the airline because that is just not going to happen. They can, however, expect a private investor that would allow Mexicana de Aviación to fly once more,” he added.