In my last post on Mexicana: Bringing Mexicana Back from the Brink - Step 1
ended with: but the future looks brighter than it did when I posted Will Mexicana Survive? on the 5th August.
Unfortunately the brightness I saw was a false dawn. The Darkness began to descend again on Mexicana when Tenedora K, the new owners of the holding company Nuevo Grupo Aeronautico attempted to lay off 1,366 Cabin Staff at below normal severance pay and then rehire some on new contracts. This was, perhaps unsurprisingly blocked by the Government.
Whilst this was a blow to the restructuring plan, it appears the fundamental problem was when the fast tracked 'Due Diligence' revealed exactly how bad the financial situation really was. This resulted in Tenedora K backing away from any new investment.
Result was inevitable, Mexicana began an orderly shutdown of operations starting on Friday the 27th August and completely ceased operations by midday Saturday the 28th August. This shutdown also included the two budget Carriers owned by Nuevo Grupo Aeronautico, Click and Link, but these are expected to return to operation. But where does this leave Mexicana?
Well in normal circumstances this would be the end of the line for the Company. But this isn't just another Airline; it is Mexico's National Carrier and a major employer and so frantic efforts will continue to resuscitate it.
Whilst objectively it is time to perhaps build a new National Carrier without the baggage of Mexicana's past, part of me hopes they do find a way of reviving Mexicana and returning it to when it was staffed by people determined to make it work as a company, not as a company to be milked by its workers.
Previous Posts on Mexicana:
Bringing Mexicana Back from the Brink - Step 1 25th August 2010
Will Mexicana Survive? - 05th August 2010
ended with: but the future looks brighter than it did when I posted Will Mexicana Survive? on the 5th August.
Unfortunately the brightness I saw was a false dawn. The Darkness began to descend again on Mexicana when Tenedora K, the new owners of the holding company Nuevo Grupo Aeronautico attempted to lay off 1,366 Cabin Staff at below normal severance pay and then rehire some on new contracts. This was, perhaps unsurprisingly blocked by the Government.
Whilst this was a blow to the restructuring plan, it appears the fundamental problem was when the fast tracked 'Due Diligence' revealed exactly how bad the financial situation really was. This resulted in Tenedora K backing away from any new investment.
Result was inevitable, Mexicana began an orderly shutdown of operations starting on Friday the 27th August and completely ceased operations by midday Saturday the 28th August. This shutdown also included the two budget Carriers owned by Nuevo Grupo Aeronautico, Click and Link, but these are expected to return to operation. But where does this leave Mexicana?
Well in normal circumstances this would be the end of the line for the Company. But this isn't just another Airline; it is Mexico's National Carrier and a major employer and so frantic efforts will continue to resuscitate it.
Whilst objectively it is time to perhaps build a new National Carrier without the baggage of Mexicana's past, part of me hopes they do find a way of reviving Mexicana and returning it to when it was staffed by people determined to make it work as a company, not as a company to be milked by its workers.
Previous Posts on Mexicana:
Bringing Mexicana Back from the Brink - Step 1 25th August 2010
Will Mexicana Survive? - 05th August 2010
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