Compania Mexicana de Aviación SA is considering plans to shed half its workforce as it seeks to return to the skies in December.
Mexicana ceased operations in August and filed for bankruptcy protection in Mexico and the United States.
However, as part of its recovery plan, the Mexico City-based carrier is considering the elimination of 3,900 jobs and over half of its aircraft.
The new leaner airline would fly to just 30 aircraft on 23 routes, six of them domestic and 17 international, mostly to the US and Canada.
Addressing a labour conference in Mexico labour secretary Javier Lozano acknowledged that, while the task would not be easy, “there is a willingness among business leaders and the unions of pilots, flight attendants and ground employees’ to resume operations”.
Plans involve signing a new collective bargaining agreement that will be overseen by the government to ensure that work conditions and job cuts comply with the law.
Subsidiaries MexicanaLink and MexicanaClick would be eliminated.
Mexicana is also likely to face intense competition to recapture its market if it is able to resume operations.
American Airlines confirmed earlier this week it would seek to fill the void left by the airline, announcing a host of new routes.
These include boosting daily round trips between Dallas/Forth Worth and Mexico City from four to five from November 18th, with round trips between Miami and Mexico City increasing to four a day.
Daily roundtrip services between Miami and Cancun will also increase from four trips on weekdays and five on weekends to five every day of the week from February 10th, 2011, the airline on confirmed.
On December 16th one new flight will be added between Chicago and Mexico City.
Subsidiary American Eagle is also stepping up its offering, increasing services to Guadalajara, Aguascalientes, Veracruz and Queretaro.