The news of suspension of all airline operations by Grupo Mexicana is indeed bad for the air passengers in Mexico. The declaration was made by the Company and Mexican authorities on August 28 after its investors, who took a significant stake in the Company to aid its restructuring, failed to strike a cost-cutting deal with unions.

The suspension would initiate from midnight. Along with the domestic routes, it would also badly hit 15 routes catering to the United States, including New York and Los Angeles, and its services to Latin America and Europe, as told by Juan Molinar Horcasitas, Mexico’s Transport and Communications Minister.

Earlier this month, the airline Company took the help of bankruptcy protection on Mexican and American courts after two of its planes got caught in Canada for not realizing payments of lease.

Mr. Molinar expressed in a news conference that no financial help would be provided to the airline for refurbishing and it would have to seek the assistance of its shareholders, new shareholders, unions, creditors and other parties.

A significant stake of the airline was bought by a group of Mexican investors last week with a condition to employ only one-fourth of all the flight attendants under bankruptcy law, which the Government obstructed.

The worker unions have agreed for flexible work time rules, but they have declined to give their consent to salary and job reductions, as told by the Company.