Mexican Military to Manage Revived Mexicana Airline

The Mexican government announced plans to operate a military-run airline after purchasing the now-defunct carrier Mexicana de Aviacion for $48 million.

According to Reuters.com, Mexican Interior Minister Luisa Alcalde revealed that the new military-owned airline would utilize the Mexicana brand name after the government reached an agreement with its former employees.

The $48 million deal includes purchasing three buildings and a flight simulator, with the Mexican government not being responsible for paying more than 7,000 former employees who had yet to receive salaries or benefits.

Mexicana was previously a national carrier, but financial turbulence forced officials to file bankruptcy in 2010. Mexican President Andres Manuel Lopez Obrador repeatedly stated his desire to revive the airline.

Defense Minister Luis Cresencio Sandoval said the revamped airline would lease 10 Boeing 737-800s to start, with the deliveries expected in September and October. Tickets will go on sale next month, with Mexicana serving 20 destinations out of the Felipe Angeles International Airport.

Earlier this month, airlines expanded service to the popular Mexican state of Quintana Roo, with American Airlines, Delta Air Lines, Air Canada and WestJet announcing new routes from North America to Cancun and Cozumel.