Since 2002, Compania Mexicana de Aviacion AKA Mexicana Airlines has been the only carrier offering direct service from Sacramento International Airport to Mexico, but now all Mexicana Airlines flights between Sacramento and Mexico will be suspended in August due to a company downsize. Flights in Las Vegas, Los Angeles, Oakland, San Francisco and San Jose will also be affected.
Fighting for its survival, the company faces even more possible layoffs and pay cuts. Pilots and fight attendants staged a labor demonstration in Mexico City on Sunday.
The latest PR release said that Mexicana Airlines Presents Unions With Reorganization Plan with two alternatives:
“The first is the option to enter into a new collective contract to secure the CMA’s long-term financial viability. This would imply accepting cuts of 41% and 39% in wages and fringe benefits for pilots and flight attendants, respectively. This alternative also calls for additional cost-cutting measures, including downsizing 40% of the airline’s pilots and flight attendants. On the upside, it incorporates a profit-sharing plan whereby the unions would get a percentage of any operating profits that exceed 5% of the company’s total revenues.
As a second alternative, stockholders have offered to sell CMA to its unions for the token sum of $1 peso, proving them convinced of the vital role these labor organizations will play in the future of the company. As the only entities capable of turning the situation around, CMA’s management have stated that it would be willing to transfer control of the airline to its unions. “
