Mexicana: Still a sexy airline

At least six groups of investors have shown an interest in acquiring carrier

By BRONSON PETTITT

Mexico Weekly / March 10, 2011

At least six different groups of investors have shown an interest in investing in Mexicana de Aviación, Mexico's once largest airline. The air carrier suspended all flights last summer amid severe financial problems.

Tenedora K, Mexicana's current majority stockholder, on Thursday denied it has received or will receive an early payment from any of the would-be investors to acquire stocks in Nuevo Grupo Aeronáutico (NGA), the owner of Mexicana and its two low-cost subsidiaries, Mexicana Click and Mexicana Link.

Tenedora K's statement came after Reforma and other newspapers reported that TG Group had paid $2.5 million in advance for half of NGA's shares.

“No commitment has been signed with any of the [six] groups and this will only be done when everything is in order and abides by the law,” Tenedora K said in a statement Thursday.

The other five groups include: BMC (investors from Monterrey); corporate financing and investment banking firm Avanza Capital; Logística Internacional; Ivan Varona; and Ahcore Int'l, NGA administrator Gerardo Badín said Thursday.

Deadline Extended

Badín also announced the deadline to submit written investment proposals would be extended; initially, it was Thursday, but investors now have until March 15.

“By extending the dates … there will be enough time to consider all of the options, in order to be able to choose the one that best suits [Mexicana's] business model,” he said.

Mexicana will choose the option that “offers the most financial security and which adapts to labor agreements” with pilots and staff.

Investors must provide documentation proving they have at least $250 million required to restart Mexicana operations, as well as the means to sustain about 3,000 employees.

On Thursday, more than 500 Mexicana pilots and flight crew protested at the Mexico City international airport, calling for the airline to restart operations as soon as possible.

Flight staff told El Economista they had done everything humanly possible to get Mexicana back in the air.

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