Canoe

(for educational purposes only)

"Monday, February 21, 2000

Judge declares Mexico's third-largest airline bankrupt

MEXICO CITY (AP) -- Mexico's third-largest airline was declared bankrupt on Monday -- a decision which was widely expected after the government grounded the heavily indebted company late last year following a crash.

The ruling makes it less likely that Taesa will ever fly again. The company had provided the only major competition for jointly owned Mexicana and Aeromexico, which together have established a near-monopoly in domestic air travel.

Judge Justino Montes de Oca ruled that the company's financial condition is unsustainable.

Taesa offered very low fares and sold tickets from booths in supermarkets.

The government suspended Taesa after on Nov. 23, two weeks after its DC-9 crashed in central Mexico, killing all 13 passengers and five crew members.

A Mexican government investigation found "important problems" in the airline's maintenance, operations, training and administration."

-- Rachel Gibson (rgibson@hotmail.com), February 22, 2000