Mexicana Airlines Files for Chapter 11
Posted By Stone Law Firm on Aug 11, 2010 12:40pm PDT
One week after filing for Chapter 11 bankruptcy, Mexicana Airlines said that it would cut some of its flights, primarily international flights from Mexico City. The airline is trying to cut costs as much as possible, which explains the reduction in services.
Mexicana, Mexico is the biggest airline by passenger count. This week, it cut or suspended 20 flights. Last week, the airline suspended its daily flights from Los Angeles International Airport (LAX) and several flights from Oakland, San Francisco and Sacramento.
Reports indicate that Mexicana has been the busiest foreign-based airline at LAX for numerous years. On August 2nd, Mexicana's parent company, Nuevo Grupo Aeronautico, filed for bankruptcy. It said the filing stemmed from high labor costs and large amounts of debt.
If you are filing for Chapter 11 bankruptcy in Utah, get the legal help you need by contacting the Stone Law Firm and consulting with a Salt Lake City bankruptcy lawyer.