Mexicana de Aviación was Mexico’s oldest airline — labor disputes brought it down

Mexicana de Aviación was Mexico’s oldest airline, founded in 1921. For nearly a century it was the country’s flag carrier, operating domestic and international routes across the Americas and Europe. It was one of the oldest airlines in the world, with a fleet of 69 aircraft and a 28–30% share of the Mexican domestic market in its final year.

The airline entered a period of decline after 2005. High labor costs, frequent strikes, and disputes with the pilot and flight attendant unions crippled operations. Owner Gastón Azcárraga was accused of mismanagement and fraud. The airline was unable to restructure its labor agreements, and attempts to find a buyer or investor repeatedly failed.

On 3 August 2010, Mexicana filed for Concurso Mercantil (Mexico’s equivalent of Chapter 11) with US$125 million in debt. It continued flying for 25 days, then suspended all operations on 28 August. Multiple rescue attempts by PC Capital, Iván Barona, and Med Atlantica failed. A judge declared the airline bankrupt in April 2014 and ordered asset sales. The brand was purchased by the Mexican government in January 2023 and relaunched as a state-owned airline.