One of the world's old airlines, Mexico's ailing Mexicana Airlines, has halted ticket sales. The carrier, which was founded in 1921, said however that it fully intends to operate flights for travelers who already purchased tickets.
Mexicana is currently negotiating pay cuts with pilots and flight attendants in hopes of avoiding bankruptcy. The airline is looking to decrease their staff by 40 percent, chop pilots' salaries and benefits by 41 percent and slash flight attendants' salaries by 39 percent.
Unions representing pilots and flight attendants turned down the demands of management. To stop some of the bleeding, the airline scrapped many international and domestic flights earlier this week.
Creditors have also tried to clip the wings of Mexicana by attempting to seize three of their 64 air crafts. Two were grounded in Canada and one was grounded in Chicago.
The airline has gone through some tough financial times in the last three years from the global recession to H1N1 scaring tourists away from Mexico travel. It is estimated that Mexicana has lost an estimated $350 million since 2007 and has mounted a debt of more than $1 billion.
Source: Wall Street Journal