Mexican govt inks deal to buy Mexicana airline brand for $42 mln, union says (updated)

Controladora Vuela Compania de Aviacion SAB de CV

06/01/2023 22:21

(Updates deal price to include flight simulator, adds details)
    By Kylie Madry
       MEXICO CITY, Jan 6 (Reuters) - The Mexican government
signed a deal with several aviation unions Friday to purchase
the brand of the defunct Mexicana airline for 811.1 million
Mexican pesos ($42.41 million), a union spokesman told Reuters.
    The deal includes rights to use the airline's brand and the
purchase of two buildings, a technical training center and a
flight simulator, pilots' union spokesman Jose Alonso said in an
interview. A time-frame for the payment has yet to be agreed
upon, he added.
    Mexico's transportation ministry did not immediately respond
to a request for comment.
    Mexican President Andres Manuel Lopez Obrador has said the
government intends to use Mexicana to launch a military-run
commercial airline.
    In December, Lopez Obrador said the airline was set to
launch operations in 2023. The government is also in talks with
Boeing on renting aircraft, he said.
    On Monday, the government will lift any legal actions in
place against Mexicana, which was declared bankrupt in 2014,
Alonso said. 
    Founded in 1921, Mexicana had been among the world's oldest
airlines.
    The payment will be divided between pilots' union ASPA,
flight attendants' union ASSA, ex-aviation workers' union AJTEAM
and transportation workers' union SNTTTASS proportionally by a
percentage of what was owed when Mexicana shuttered, Alonso
said. 
    Though the payment is a small fraction of what was owed to
workers, Alonso said, "it's a little bit of justice after 12
years."
    The deal was reached Friday between Mexico's transportation
ministry and the unions with supervision from the labor
ministry, Alonso added.
    A military-run business, Olmeca-Maya-Mexica, will take over
the company, Lopez Obrador has previously said.
    The push to operate the military carrier comes as Lopez
Obrador has expressed his discontent with the country's
airlines. 
($1 = 19.1273 Mexican pesos)
 (Reporting by Kylie Madry; Editing by Sarah Morland and David
Gregorio)
 ((Kylie.Madry@thomsonreuters.com;))