Mexicana Delays Return to Skies

(Mexico City, AN 2 March) The long-awaited privatization and resuscitation of Mexicana De Aviación took a step backwards yesterday when purchasing candidate PC Capital missed a deadline to come up with funds for the purchase of shares, plus $200 million in working capital. Gerardo Bardín, the government-appointed conciliator for the negotiations to put Mexicana back into operation, said that PC Capital will no longer be considered for the deal. Instead, TG Group, another suitor previously ruled out by Labor Secretary Javier Lozano, will be reconsidered for the deal. The rejection of TG Group was explained thus: They did not “meet the necessary expectations” for operating an airline. Cynical observers interpreted that as government-speak for saying the deal was wired to PC Capital, which benefitted from excellent political connections, but at the last minute they could not produce the debt guaranties necessary to confirm the availability of funds from Europe.

Mr. Bardín is frustrated, as it essentially puts the project back more than four months, as the government must commence with a second investment group. He said that the insolvent airline was left waiting at the altar, like “the village bride”; everyone was ready for the marriage, but the bridegroom was missing. TG Group is now the only realistic suitor left.