A Mexican Consortium has stepped to take a controlling interest in Mexicana. The consortium named Tenedora K has been formed specifically to buy a 95% Shareholding in Nuevo Grupo Aeronautico which is the holding company for Mexicana and its domestic operations offshoots Mexicana Click and Mexicana Link. The remaining 5% of the shares remains with the Pilots Union, who through their leader Fernando Perfecto, have been involved in attempts to find a buyer.
However before the deal can be finalised it still has to go through the due diligence processes and the urgently required Capital Injection is subject to investment conditions being favourable. However there has already been one casualty as Manuel Borja Mexicana's now former CEO left his post on the 20th August. Meanwhile the legal proceedings on the Mexicana Insolvency continue through the Mexican Courts.
The formation of the Tenedora K consortium has been carried out with impressive speed, with the assistance of Advent International, and assuming that the result of fast tracking 'Due diligence' falls within what is acceptable to the Consortium, then the completing the first step in saving Mexicana will depend on the Consortium making a massive Capital injection.
But completing this first step just provides a 'life support system' and the very real challenge for the new owners is the total restructuring of the Airline. This restructuring is going to have to be at all levels of the Business and I am sorry to say will have a major impact not just on staffing levels, but pay, benefits and conditions for those still employed. This will bring the new team into the same conflicts with the Unions (including the 5% Shareholding Pilots Union) as the previous Management. But whilst the Labour situation will headline, all other elements of the Business including Fleet and Route Structure, plus Ground Handling services and Back office functions including IT will need to be reviewed and where necessary pruned.
Mexicana's survival will require hard decisions, with a heavy human cost and it will be a painful journey, but the future looks brighter than it did when I posted Will Mexicana Survive? on the 5th August.
See Update: Mexicana - Two Steps back and Teetering 31st August 2010
However before the deal can be finalised it still has to go through the due diligence processes and the urgently required Capital Injection is subject to investment conditions being favourable. However there has already been one casualty as Manuel Borja Mexicana's now former CEO left his post on the 20th August. Meanwhile the legal proceedings on the Mexicana Insolvency continue through the Mexican Courts.
The formation of the Tenedora K consortium has been carried out with impressive speed, with the assistance of Advent International, and assuming that the result of fast tracking 'Due diligence' falls within what is acceptable to the Consortium, then the completing the first step in saving Mexicana will depend on the Consortium making a massive Capital injection.
But completing this first step just provides a 'life support system' and the very real challenge for the new owners is the total restructuring of the Airline. This restructuring is going to have to be at all levels of the Business and I am sorry to say will have a major impact not just on staffing levels, but pay, benefits and conditions for those still employed. This will bring the new team into the same conflicts with the Unions (including the 5% Shareholding Pilots Union) as the previous Management. But whilst the Labour situation will headline, all other elements of the Business including Fleet and Route Structure, plus Ground Handling services and Back office functions including IT will need to be reviewed and where necessary pruned.
Mexicana's survival will require hard decisions, with a heavy human cost and it will be a painful journey, but the future looks brighter than it did when I posted Will Mexicana Survive? on the 5th August.
See Update: Mexicana - Two Steps back and Teetering 31st August 2010
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