Mexicana Jets Seized by Lessor After `Misunderstanding,' Bankruptcy Report

Corporacion Mexicana de Aviacion SA said lessor Air Canada seized two aircraft after a “misunderstanding” and a report that the Mexican carrier may file for bankruptcy.

The differences with Air Canada have since been resolved and all flights are operating normally, Armando Vera, a spokesman for Mexicana, said yesterday without elaboration. The airline earlier canceled two flights from Montreal and Calgary, Canada to Mexico City.

The flights were canceled after a creditor asked Canadian authorities to take grounding actions to clarify “rumors” about the company’s debts, the airline said. El Universal newspaper reported yesterday that the carrier told unions representing pilots and flight attendants that it’s considering filing for bankruptcy, a sale to the unions or a restructuring plan.

Vera said he couldn’t comment on the airline’s financial situation. Mexicana’s shareholders are scheduled to meet today, he said. Isabelle Arthur, a spokeswoman for Air Canada, didn’t return phone and e-mail messages yesterday after normal business hours.

The government had no role in the matter, Transport Canada said yesterday in an e-mailed statement.

Passengers on the canceled flights were transferred to other services.

To contact the reporter on this story: Crayton Harrison in Mexico City at Tharrison5@bloomberg.net

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