Mexicana Airlines was sued Wednesday for at least $841 million by a Texas company that accused Mexico's new state-owned airline of several breaches of contract that undermined its ability to help the airline get off the ground.
According to a lawsuit filed in Manhattan federal court, Mexico's government hired plaintiff SAT Aero Holdings last year to provide a variety of services to Mexicana, including obtaining aircraft and related insurance, and recruiting and training pilots and crews.
Mexicana began operations at the end of December 2023 after several delays due to the difficulty in obtaining Boeing aircraft, although at that time no differences were aired with the North American company.
After a series of obstacles, Sedena decided to take three aircraft from the Mexican Air Force to convert them to commercial use, in addition to leasing two more to a regional company in Mexico. In this way, Mexicana de Aviación was able to take flight on domestic routes.
Juistifying its suit , the SAT said Mexicana breached its obligations almost from the start, including by failing to pay $5.5 million in aircraft lease deposits, refusing to sign documents, stealing pilots and crews and failing to obtain the necessary licenses to import planes into Mexico and operate them.
Mexicana's "material violations and unwillingness to work with the SAT to resolve the problems caused" left the SAT "no choice" but to sue, according to the complaint.
"The plaintiff company, formerly known as Petrus Aero Holdings, was hired by the Mexican government to manage aircraft leasing and hire crews. In his complaint, he alleges a lack of cooperation on the part of Mexicana, which has jeopardized its viability."
The Ministry of National Defense (Sedena), which operates and manages the Mexicana carrier, said it had no information about the case.
In August of last year, SAT Aviation Holdings announced a preliminary agreement with the Mexican government for the lease of two Boeing 737-800s, at a cost of $350,000 per month for each aircraft.
It also stipulated a monthly payment of $627,000 per month for offering ancillary services for the first six months, after which another eight aircraft will be added to the fleet.
The San Antonio-based SAT is seeking $838.5 million in damages representing the "full amount" of the contract, plus "out-of-pocket" costs that so far exceed $2.4 million.
Last year, President Andrés Manuel López Obrador launched Mexicana reviving the brand of a bankrupt airline.
The government has marketed Mexicana as a less expensive alternative for travelers to the country's largest airlines, such as Aeromexico, with which López Obrador has often clashed.
But Mexicana initially struggled to acquire aircraft, starting operations with three Boeing and two leased Embraer aircraft. At the end of January 2024, President López Obrador acknowledged that new connections within Mexico cannot be opened in the short term due to the reduced number of aircraft.
Mexicana currently flies to 17 destinations: Acapulco, Campeche, Chetumal, Ciudad Victoria, Guadalajara, Ixtepec, Ixtapa Zihuatanejo, Merida, Monterrey, Mazatlan, Nuevo Laredo, Palenque, Puerto Vallarta, Tijuana, Tulum, Uruapan and Villahermosa.
Lopez Obrador said this month that Mexicana would buy 20 planes by October.
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