The Guadalajara Reporter

Buyer steps in to rescue troubled airline

Mexicana Airlines is finally on its way back to the skies. After months of negotiations, Med Atlantic has bought the bankrupt airliner, which suspended all flights in August 2011.

Founded in 1921, Mexicana is the country’s oldest airliner. Med Atlantic has now purchased 95 percent of the company, whose debt exceeds 800 million dollars.

The deal comes after Med Atlantic paid an advance deposit of 300 million dollars in February to demonstrate their creditworthiness.

Med Atlantic representative Christian Cardenas said there is still no scheduled date for when flights will resume.

The first task of the new owners will be to restructure the airline. None of Mexicana’s 8,600 employees have been paid a cent since the airline went into bankruptcy in August 2010. It is expected that less than 30 percent of the staff will be rehired – including just 280 of the airline’s original 1,044 pilots.