Mexicana faces $800 million lawsuit aviation consultancy | Airlines

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Mexico’s newly reformed state-owned airline Mexicana is facing a hefty lawsuit for at least $841 million over alleged breaches of contract. On March 27, 2024, the US-based company SAT Aero Holdings filed a lawsuit in the New York federal court alleging various breaches of contract when relaunching the carrier and seeking at least $841 million in damages. 

According to Reuters, SAT claims it was retained by the Mexican government in 2023 to provide crucial management consultancy services to get Mexicana off the ground. These alleged services included securing aircraft and the requisite insurance, recruiting and training qualified pilots, and sourcing cabin crew. However, the lawsuit details how an array of alleged actions by Mexicana executives stifled the partnership from the outset.  

According to legal papers filed by SAT, Mexicana repeatedly undermined SAT’s efforts including Mexicana failing to pay a minimum of $5.5 million in deposits for leased aircraft secured by SAT.  

This initial financial hurdle significantly hampered SAT’s ability to secure the necessary aircraft for the relaunch of the carrier and hindered the airline’s operational setup. Furthermore, the lawsuit alleges that Mexicana refused to sign crucial documents required for the airline’s operations. These documents were essential for securing landing slots and establishing flight schedules, which “potentially caused significant disruptions for Mexicana’s early operations.” 

Mexican Government

SAT also accuses Mexicana of actively poaching pilots and other crew members it specifically recruited to assist with the launch. This alleged poaching of personnel “could have significantly impacted Mexicana’s ability to function smoothly in its early stages, potentially causing delays and safety concerns,” according to the lawsuit. 

SAT argues that these alleged breaches significantly hampered its ability to fulfill its contractual obligations and ultimately hindered Mexicana’s…

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