Mexico airline Mexicana files for bankruptcy.
Mexico’s biggest airline, Mexicana de Aviacion, has filed for bankruptcy protection after failing to reach a deal with trade unions on cost cutting. The heavily-indebted airline said flights would continue while it restructured its finances. Mexicana had proposed deep pay cuts for pilots and crew, as well as a 40% reduction in the workforce.
Mexicana is the biggest airline to go bankrupt since Japan Airlines. It does not come as a big shock: Mexican airlines have faced tough conditions lately, battling the deepest recession in the Americas.
Source: The Economist
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