August 7th, 2010 
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The largest airline of Mexico, Mexicana de Aviacion, has announced that it has filed for bankruptcy protection in Mexico and the U.S. after flight attendants and pilots rejected a deal for cutting pay and staffing.
Mexicana has filed the request in a Mexico City court for restructuring its cost and insure company’s viability. It was disclosed by the company that insolvency law of Mexico allows Mexicana to maintain its operations while trying for a solution for its financial problems.
From Timesofindia.indiatimes.com:
Mexicana said it filed Monday in a Mexico City court “to restructure its cost and insure the viability of the company.” Mexico’s insolvency law will allow Mexicana to keep operating while it tries to solve its financial problems, the company said.
The airline also filed for Chapter 15 bankruptcy in a New York court saying it needs protection from creditors who may want to seize its US assets.
“Action against Mexicana’s aircraft or airport terminal operations and equipment would seriously disrupt Mexican’s efforts to restructure its affairs,” Maru E. Johansen, Mexicana’s U.S. vice president for legal affairs and corporate affairs, said in court papers.
Creditors in the US and Canada worried about Mexicana’s financial situation had three of the airline’s aircraft grounded last week.
Johansen said the company was badly hit by the swine flu outbreak last year. Mexicana “suffered losses as a result of a flu epidemic that had a severe, immediate and unexpected impact upon Mexican tourism and business-related trips and travel,” he wrote.
Mexicana carried approximately 11.1 million passengers in 2009 and flies to more than 65 national and international destinations.
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