Mexicana Airlines was sued on Wednesday for at least $841 million by a Texas company that accused Mexico's new state-run airline of several breaches of...
NEW YORK - Mexicana Airlines was sued on Wednesday for at least $841 million by a Texas company that accused Mexico's new state-run airline of several breaches of contract that undermined its ability to help the carrier get off the ground.
SAT said Mexicana reneged on its obligations almost from the start, including by not paying $5.5 million of aircraft lease deposits, refusing to sign documents, poaching its pilots and crews, and failing to obtain licenses needed to import planes to Mexico and operate them.Mexicana's "material breaches and its unwillingness to work with SAT on solving the problems caused" left SAT "no choice" but to sue, the complaint said.
SAT, based in San Antonio, is seeking $838.5 million of damages representing the "full amount" of the contract, plus "out-of-pocket" costs that so far exceed $2.4 million. The government has marketed Mexicana as a less-expensive alternative for travelers than the country's largest airlines like Aeromexico, with which Lopez Obrador has often clashed.
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