U.S. airlines to benefit from Mexicana meltdown
August 6, 2010 |12:29 | Airlines By : Team X
Possible bankruptcy for one of Mexico's two major airlines could benefit U.S. carriers, but the latest shake-up in a troubled air sector is not seen seriously denting the country's tourism industry for now.
Mexicana de Aviacion, saddled with mounting debts and high employee costs, filed for creditor protection with Mexican and U.S. authorities this week after it failed to get employees to accept further wage cuts.
On Wednesday, Mexicana suspended ticket sales, raising questions about whether it can stave off bankruptcy -- and how long it can continue to operate. On Thursday, the company said its petition for insolvency had been admitted by a Mexico City district judge.

The new owners of former Virgin Nigeria Eagle Airlines, NICON Group, have renamed the airline, Air Nigeria. With the renaming of the airline, the new owners have dumped the Virgin Nigeria brand, owned by Richard Branson.











