Mexican airlines can’t fly past the sector’s crisis

Just like any other airline worldwide, Mexico’s Aeromexico and Mexicana haven’t been able to leave behind the problems nagging the entire aviation industry after the 9/11 terrorist attacks in the United States.

According to the Cintra Group, comprising Mexico’s six major airlines, losses totaled $150 million last year and once again verged on the triple digits during the first quarter of 2003.

In order to grapple with one of the worst crises in history, the two companies recently announced dramatic layoffs and wage cuts.

The information was revealed by Mexican newspaper La Reforma, citing sources close to the group’s front office that didn’t rule out Aeromexico’s possible bankruptcy in the next 18 months unless the carrier could backpedal the ongoing dire situation.

Jaime Gonzalez, a representative of the Pilots Union, said airlines are losing some $600,000 a day and this shortfall is prompting companies to slash revenues rather than filing for Chapter 11.

Fernando Flores, CEO of Mexicana de Aviacion –the country’s second-largest airline- the company is currently making a financial comeback despite a $400 million deficit.

Like most Latin American air carriers, Mexican airlines are not edging out of the crisis hitting the whole aviation industry worldwide.

The 9/11 terrorist attacks in NYC and Washington were followed by the war in Iraq and the SARS outbreak, a combination that cut down on the number of airline passengers all around the globe.