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Posted on: August 10th, 2010 by Paul Mayer
It now seems that the well known Mexican airline Mexicana Airlines has had to suspend all flights from London Gatwick airport to Mexico City. This news comes just after the company filed for bankruptcy protection last week.
This airline, which is the Mexican national airline, had earlier assured passengers that it would continue operating its services to London. However, this route, which was first launched back in October of 2008, turned out to be one of the 18 routes that had to be suspended for a few days while the airline looked over its financial restructuring program.
So far, the airline has suffered a very dramatic fall in the number of people that are wanting to visit Mexico. A lot of this had to do with, not only the economic downturn, but also the outbreak of the swine flu last year.
The airline, in a statement made on its website, said that this finical situation is no longer sustainable after the unions failed to agree with the cost saving measures that the airline came up with. Despite new investment and savings of £500 million, the carrier’s operating costs are still too high. In fact, the airline claims that its pilots earn up to 50 percent more than the average paid by United States airlines. Cabin crew apparently make up to 32 percent more than what the average United States cabin crew member makes.
The airline had proposed a pay cut of up to 41 percent to help bring costs down. The airline said that it also needed to ax some 700 jobs.