MEXICANA PILOTS TO GET STAKE IN AIRLINE

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By TESTCustomwebLP TESTCustomwebLP January 26, 2011 15:46

MEXICANA PILOTS TO GET STAKE IN AIRLINE

The union representing pilots at Mexicana de Aviacion is getting a 2.8% stake in the carrier, which went bankrupt last year, as compensation for unpaid wages, union leaders said. The union’s stake in the carrier was reduced by about 2%, Airline Pilots Association, or ASPA, leader Fernando Perfecto said.

Grupo Aeronautico the new holding company, will hold the stock of Compania Mexicana de Aviacion and budget carriers Mexicana Click and Mexicana Link.

Once the shareholdings are completely determined, the owners of private equity group PC Capital will eliminate 75% of the airline’s workers, including flight attendants, pilots and ground support personnel, and pay them 2 billion pesos (about $166 million), the ASPA leader said. Half of the money will be paid immediately and the rest over seven years, with interest, Perfecto said. Workers whose positions are eliminated will get shares in the new carrier worth 2.8 billion pesos (about $233 million), the union leader said.

Mexicana de Aviacion, which plans to resume flying next month with six planes and 100 pilots, received its operating and security licenses over the weekend after conducting test flights mandated by regulators. Mexicana, which had been one of Mexico’s two leading airlines, stopped operating Aug 28 along with sister budget carriers Click and Link due to serious financial problems. On Sep 7 2010, a Mexican judge allowed the airline to suspend payment on its debt and left it in the hands of a court-appointed receiver.

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By TESTCustomwebLP TESTCustomwebLP January 26, 2011 15:46
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