Mexicana stops all flights

Mexicana stops all flights

Mexicana de Aviacion has suspended all flights, three weeks after filing for bankruptcy protection as a last-minute rescue package failed to materialise.

The action will also apply to two budget carriers affiliated with Mexicana - Link and Click.

Mexicana had earlier axed some of its routes and had stopped selling tickets.

The airline flew 220 routes to 65 destinations including London, Madrid, Montreal, Chicago and cities in Central and South America.

The 89-year-old airline, the third oldest in the world, has debts of about $800m (£500m).

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It filed for bankruptcy protection after failing to reach a deal with trade unions on cost-cutting.

Plans to sack about 1,000 cabin crew to enable a takeover by a Mexican investment consortium were blocked by the government earlier in the week.

The firm suffered heavy losses during Mexico’s recession in 2009, as well during an outbreak of swine flu the same year.

After filing for bankruptcy protection Mexicana proposed deep pay cuts for pilots and crew, as well as a 40 percent reduction in the workforce.