Mexicana is the latest victim of tough times facing the global airline business

Mexicana, the venerable national airline of Mexico, has gone broke and suspended all flights indefinitely. This is the sad message currently up on the airline’s website:

“Mexicana Airlines (Grupo Mexicana) suspends its operations indefinitely.

“The current administration received the company seven days ago under Business Reorganization (Concurso Mercantil) and technically bankrupt. Financial deterioration and lack of agreements force Grupo Mexicana to stop flying.

“Grupo Mexicana deeply regrets all inconveniences caused to its passengers.”

The announcement came just one week after the airline’s parent, Nuevo Grupo Aeronautico (NGA), was bought by the Tenedora K investment company. According to a report on aviation website www.flightglobal.com, the new owners have been trying to get concessions out of the airline’s unions that would help make it viable.

In this brave new world where recessions and strikes come in gangs, airlines have to be nimble and fleet of foot. The age of old model of full-service airlines is clearly done. The new model – as successfully operated by no-frills carriers such as Ryanair, easyJet, Southwest Airlines and, locally, Kulula and 1time – is the future of air travel. And even that is no guarantee when recessions and volcanic ash clouds can easily knock millions of dollars off an airline’s revenues.

Still, big airlines have gone bust before – and some of them, like Swiss, have come back for more. So, it’s not over yet for Mexicana.