Mexicana suspends Gatwick flights

Mexicana has suspended its London Gatwick-Mexico City service from today due to serious financial problems.

It is one of 15 services suspended from today, with another three suspended from tomorrow.

The airline, which filed for bankruptcy protection last week, originally said its flights would be unaffected.

But in a statement issued yesterday, it said its financial situation has deteriorated substantially in the last week "due to a series of events that have strangled the cash flows".

It said IATA's decision to suspend its BSP sales channel had forced it to suspend the sale and issuing of tickets indefinitely.

"Other sources of revenue have either dried up or are being retained by financial institutions following the company's recent decision to file bankruptcy proceedings," the statement said.

Mexicana said it was determined to make an effort to continue operating.

"It is hoped an agreement will be reached with union leaders and that additional resources can be obtained to secure the financial viability of the carrier," it said.

The airline's management had been in talks with unions over a possible reduction in staff wages of around 40%.

Mexicana, whose troubles were compounded by the swine flu crisis and recession, has lost US $350 million since 2007.

In its bankruptcy petition it listed debt of more than $1 billion.

With permission from Travelmole