A group of investors has agreed to buy the assets of Mexico's bankrupt TAESA and plans to relaunch the airline as Líneas Aéreas Azteca, or Aztec Airlines.
This follows months of manoeuvring between potential bidders, union leaders, and TAESA's bankruptcy receiver. Two separate investor groups made competing proposals in June.
The current bid represents a partnership between a group of Mexican investors headed by Leonardo Sanchez Davalos and undisclosed US investors represented by a Texas lawyer, Marco Delgado Acosta.
The size of the bid has not been disclosed, but the receiver says 25% of it will come from the American investors - the maximum amount allowed under Mexican law.
The majority 60% is due to come from the Sanchez group, with the remaining 15% in "mixed form". Observers have estimated it will take at least $75 million to bring TAESA's remaining aircraft up to US noise standards.
The bankruptcy court has blessed the deal by issuing its final bankruptcy decree. That clears all remaining claims against TAESA's assets. The investors propose to re-hire up to 700 former TAESA employees and start operations in November. That schedule appears optimistic. Like TAESA, Azteca proposes to operate three divisions: commercial, cargo, and charter.
TAESA was forced into bankruptcy last year following a fatal crash that caused safety officials to ground Mexico's number three airline. It sought unsuccessfully to recapitalise, a condition imposed by the government before it would allow flights to resume.
Source: Airline Business