Mexicana in `Critical' Financial Situation, Board Will Seek New Strategies

Grupo Mexicana de Aviacion, Mexico’s biggest airline by passengers, said its financial situation is “critical” and shareholders asked the board of directors to present proposals to keep the company operating.

Executives and shareholders of Mexicana, which Mexico City- based Grupo Posadas SAB bought from the government in 2005, met today to review the “difficult” situation the carrier faces because of its financial woes, company spokesman Adolfo Crespo said.

“The board of directors will present proposals to ensure the viability of the company,” Crespo said. A date for the presentation of the proposals hasn’t been set, he said.

To contact the reporter on this story: Jose Enrique Arrioja in Mexico City at jarrioja@bloomberg.net

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