Troubled Mexicana Airline bought by business group

Here was a news piece about Mexicana andtheir Bankruptcy from the other day, but newest info is they have hored a nw CEO.... however, analysts dont expect them to survive. What amazes me if one of the expenses to control is labor. I thought labor was cheap in Mexico!?
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Aug 21, 2010

A consortium of Mexican businessmen has bought a 95 percent stake in the holding company that controls troubled Mexican airline Mexicana de Aviacion, a spokesman for private equity group Advent International said on Saturday.

Advent International helped put the deal together, but the U.S. private equity firm is not participating as a shareholder in the consortium, called Tenedora K, according to a statement obtained from Advent's Mexican public relations office.

Mexicana, one of Mexico's two major airlines, has halted more than a dozen international routes and stopped selling tickets after requesting creditor protection earlier this month under Mexico's insolvency law.

The consortium bought 95 percent of Nuevo Grupo Aeronautico, which controls Mexicana as well as domestic airlines Mexicana Click and Mexicana Link, the statement said.

"Tenedora K is a company formed by a group of Mexican businessmen as a vehicle to capitalize the mentioned airlines, with the aim of rescuing them from the critical financial and operating situation they are in," the statement said.

Grupo Industrial Omega and Grupo Arizan are among the shareholders of Tenedora K, the statement said.

Mexican hotel operator Grupo Posadas (POSADASL.MX) said on Friday that it had sold its 30 percent share of Nuevo Grupo Aeronautico.

The remaining 5 percent state in the holding company is held by the pilots union, the statement said.

Source: Reuters