Mexico Manufacturing Industry Information Center

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Saturday 18 May 2013
   
Mexico City.- Possible bankruptcy by Mexicana, Click and Link puts at stake the survival of Mexicana MRO Services, the only subsidiary of Nuevo Grupo Aeronautico (NGA) which keeps operating, Edith Alarcon, Judge in the Group’s filings for Concurso Mercantil (similar to US Chapter 11), warned.
“If services provided by MRO to Mexicana were cancelled, they would not have the personnel required for the works currently under development”, a document dated September 13 reads.
MRO, the base that provides maintenance to NGA’s remaining airplanes and to foreign airlines, completely depends on Mexicana de Aviacion for their day-to-day operations.

Judge Alarcon explained that the labor force at the workshop is transient and it grows or shrinks depending on the repairs made, because almost all employees work on airplanes maintenance and repair.
Due to the fact that it belongs to the same Group as the airline, this subsidiary has access to technical assistance by original equipment manufacturers, such as Airbus, Boeing and General Electric.
"In some cases, access to technical information (manuals) from components manufacturers would be lost, because by policy they do not give support to independent workshops. Access to training by airplanes and engines manufacturers would be also lost”, Judge Alarcon further said.

If the three airlines in the Group go bankrupt, the maintenance base would have to negotiate their own agreements, which means buying components for repairs between 15% and 20% more expensive.
As an independent workshop they should pay compensation to Mexico City International Airport, which could reach 15% of their invoicing.
If the base were unable to provide services, this would affect LAN Group and aircraft lease firms such as ILFC, Jetran and Massjet.
According to Judge Alarcon, the damage would be irreversible for their customers and would put in serious risk the center’s prestige and viability.
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