METRO COMMUTER AIRLINES: United States (1968-1970)

MCA is set up at Denver in the late summer of 1968 to provide scheduled passenger and cargo services. Employing a Volpar-modified Beech 18, an Aero Commander 500B, and a Beech B-80 Queenaire, the company begins revenue flights on September 17, linking its base with Greeley, Laramie, Cheyenne, Boulder, Fort Collins, Colorado Springs, Pueblo, and Canon City.

Operations continue apace until 1970.

METRO EXPRESS II: United States (1984-1987). During the summer of 1984, Metro Airlines’ owners Edmond Henderson and Jay Seaborn create another carrier under the “corporate opportunity doctrine” to take over Metro’s previous southwest routes as a member of the American Airlines “American Eagle” commuter network. Specifically activated to feed the major at Dallas (DFW), it begins life as a company affiliate rather than a subsidiary and is placed under the leadership of Executive Vice President Carter Burwell III, former president of Pine-hurst Airlines.

The new commuter is equipped with two British Aerospace BAe Jetstream 31s transferred from Metro Express I operations at Atlanta. Meanwhile, the Air Line Pilots Association (ALPA) charges that Metro Express II has been formed as an “alter ego” airline that will allow Metroflight to evade the contract it has with its pilots.

Competition for markets with Delta Air Lines’ “Delta Connection” commuter partner Rio Airways begins on November 1. Communities visited include the Texas communities of Beaumont, Dallas (DFW), Longview, and Tyler; Lawton in Oklahoma; the Arkansas cities of Fort Smith and Fayetteville; and Lafayette in Louisiana.

As services increase in early 1985, Metro’s five Convair CV-580s based at Oklahoma City are dedicated to the “American Eagle” operation as eight previously ordered Jetstream 31s are awaited.

ALPA files a grievance with the company claiming it is the bargaining agent for the carrier’s pilots. Following a second stock offering, the Securities and Exchange Commission (SEC) begins an investigation of the carrier’s claim to be a separate airline. Traffic results are not released by the privately held company.

The Jetstreams arrive in 1986 and are joined by four Shorts 330s. The SEC announces that new President Clark Stevens’ Metro Express II is, indeed, an airline separate from Metroflight. In July, Metro Express II files a petition with the NMB requesting release from mediation regarding the ALPA representation question. Late in the year, the carrier is able to sell 850,000 shares of common stock, raise $8 million, and increase company worth to $20 million.

Passenger enplanements total 295,000.

In January 1987, after ALPA and Metroflight have agreed upon an independent arbitrator to settle their two-year-old pilot representation battle, the arbitrator finds in the union’s favor. Meanwhile, the company offers 47 daily flights to 5 Texas cities plus Monroe, Louisiana. In August,

Metro Express II is one of two “American Eagle” affiliates taken over by Metro Airlines.

METRO INTERNATIONAL AIRWAYS: United States (19801983). MIA is formed by Tiger International Corporation in December 1980 at New York (JFK) to take advantage of the receipt of transatlantic authorities held by recently merged Seaboard World Airlines. Organized as a scheduled and package-tour passenger division of its The Flying Tiger Line, it is equipped with 3 Boeing 747-212Bs recently acquired by the Tiger International subsidiary Tiger Air from Singapore Airlines, Ltd. and 1 leased Douglas DC-8-62, complete with crews.

The first trial North Atlantic Jumbojet charter is flown in December; however, the separately managed large regional inaugurates regular charters in March 1981 to Hawaii, Europe, the Caribbean, and the Mideast. The start-up of scheduled New York to Belgium passenger service is postponed in December.

A total of 377,155 passengers are flown on the year and the division generates operating income of $31,260,825.

As the result of lower than expected returns, DC-8-62 passenger flights cease on February 23, 1982. New York to Brussels scheduled frequencies begin in March, by which time the fleet includes 4 B-747-112Bs, all leased from the parent. Aboard the Jumbojets, three types of service are offered: Captain’s Deck, Metropolitan Class, and Economy Class.

In November, the company obtains a contract from Tower Air, formed in August, to undertake package tour flights to Frankfurt, Paris, Zurich, and Tel Aviv. The Israeli destination also becomes a scheduled stop on the Brussels run. Tower is now Metro’s general agent, in charge of its sales and passenger services.

Although the number of passengers flown is not provided, it is reported that revenue passenger kilometers (RPKs) flown increase 62.8% on the year to 4.7 billion. Revenues increase to $58,327,014.

In February 1983, the three passenger jets acquired from Singapore Airlines, Ltd. are traded to Pan American World Airways (1) for four B-747-100Fs. Employing the Jumbojets leased from the parent, the charter operator’s New York-Tel Aviv service is maintained until November, when officials of Tiger International elect to close down the unprofitable division and concentrate only on scheduled freight opportunities. The lone route is taken over by Tower Air.

METROJET. See USAIRWAYS

On January 20, 1961, the company Heron 2 begins flying ad hoc charters for the Kidlington-based Pressed Steel Company. Simultaneously, under lease but on behalf of the steel maker, Metropolitan also flies a second Heron 2. Flights originate both at Kidlington and at London (LGW) to various British cities, while a fairly regular charter is undertaken Oxford to Paris (LBG) beginning on January 29. Later in the month, the company also purchases its own Dove 1B for use on behalf of its new wholly owned subsidiary, Aero Exploration, Ltd. Other French destinations reached during the year include Deauville and Vitry.

On June 22, the Dragonfly is damaged beyond repair in a crash at La Baule Airport in France. The Heron 2 leased from Pressed Steel is destroyed in a crash at Biggin Hill on July 16 (two dead). For the remainder of the year, the surviving Dove 1B and Heron 2 mount charters to France and a few on to Italy via London (LGW).

In June 1962, the carrier is reorganized, with one G. Try as chairman. The original Heron 2 is sold the same month. The carrier now becomes the management and operational backer of Libyan Aviation, Ltd. From this point on, the carrier flies few charters in the U. K.

On September 13, 1965, Metropolitan purchases Exeter-based British Westpoint Airlines, Ltd., allowing it to fly under its prepurchase name until its failure in May 1966. When Libyan Aviation, Ltd. ceases operations in early 1967, Metropolitan is left without a purpose or future and thus ceases flying.

METROPOLITAN AIRWAYS, LTD.: United Kingdom (19781985). Alderney Air Ferries, Ltd. is formed on Alderney in 1978 to

Provide scheduled services between the Channel Islands and Bournemouth Airport in Dorsetshire with Britten-Norman BN-2 Islanders. In 1981, the company shifts its base to Bournemouth and becomes a commuter associate of both Dan-Air/Dan-Air Services, Ltd. and British Caledonian Airways, Ltd.

Outfitted with a pair of de Havilland Canada DHC-6s and a Shorts 330, the 50-employee carrier, now renamed Metropolitan, undertakes, on behalf of BCAL, a scheduled route between Newcastle and Glasgow. Simultaneously and on behalf of Dan-Air/Dan-Air Services, Ltd., flights are initiated from Bournemouth to Cardiff, Bristol, Manchester, Leeds, Newcastle, and Glasgow and, during the summer, between Bristol and Cork.

Operations continue apace until the carrier ceases flying in October 1985.

METROLINK. See MIDWAYAIRLINES (1)

METROPLEX AIRLINES: United States (1978-1981). Metroplex is set up at Fort Worth, Texas, in July 1978 to operate a daily roundtrip shuttle to Houston. Employing Cessna lightplanes, revenue flights are duly inaugurated and are maintained into early 1981.

METROPOLITAN AIR FERRY SERVICE: United States (1931).

William Robertson and the Curtiss-Wright Corporation set up this early example of a same city, interairport link in late August 1931. Employing the Ford Tri-Motors 4-AT-49 and 4-AT-51, the carrier inaugurates hourly services between the Curtiss Airport on Long Island, Newark Airport, and Floyd Bennett Field on September 4. Rail and sight-seeing passengers are given the option of a $2 interairport fee or a $5 ticket for a roundtrip over the whole 55-mile triangular route, which features spectacular views of Manhattan from 2,000 feet.

The two aircraft cover 18,405 miles in the first month and transport a total of 2,259 passengers. Bad weather and the Great Depression combine to force the little enterprise out of business in December.

METROPOLITAN AIR MOVEMENTS, LTD.: United Kingdom (1960-1967). Air Chief Marshal Sir Guy Garrod founds this air charter operation at Biggin Hill Airport in June 1960. By December, the company has acquired a de Havilland DH 90A Dragonfly and a DH-114 Heron 2, the former being employed in aerial photography work.

MEXAIR, LTD.: Switzerland (1989-1994). Organized at Geneva in May 1989, Mexair is a joint Franco-Swiss company for which two presidents are appointed: Ronald de Smet representing Mexair France and Renzo Blanchini of Mexair Switzerland. Worldwide nonscheduled passenger and cargo services are inaugurated with a Dassault Falcon 20.

Following the breakup of the Soviet Union, it is decided that profits can be made by flying less-expensive Russian equipment. To that end, a fleet is assembled in 1992 of former Aeroflot Soviet Airlines aircraft, including 4 Antonov An-12Cs, 1 An-72C, 2 Ilyushin Il-76TD freighters, and 1 Yak-40 passenger plane. Airline employment in 1993 stands at 82. Unable to maintain economic viability, the enterprise shuts down in 1994.

MEXICANA AIRLINES, S. A. de C. V.: Mexicana Building, Xota No. 535, Colonia del Valle, P. O. Box 12-813, Mexico City, 03100, Mexico; Phone 52 (5) 448-3000; Fax 52 (5) 687-8786; Http://www. mexicana. com; Code MX; Year Founded 1956. The Mexicana marketing name is given to CMA (Compania Mexicana de Aviacion, S. A. de C. V.) in 1956. The first of four Douglas DC-7Cs to arrive during the year is delivered in February 1957.

Under a new Mexico-U. S. bilateral agreement signed on August 3, DC-7C flights commence from Mexico City to San Antonio via Monterrey on September 16. The introduction of the new route is timed to coincide with the anniversary of the nation’s independence. These flights are followed on October 15 by nonstop Mexico City to Chicago DC-7C services.

In May 1958, Mexico City to Matamoras via Monterrey DC-6 daily service begins. On June 3, a DC-6 with 45 aboard crashes near Guadalajara; there are no survivors.

Max Healey succeeds Elton Silliman as general manager on July 31. Communication workers call a strike on August 18 after a wage accord is not met. In an effort to upgrade California service, a Bristol Britannia 302 is leased from Aeronaves de Mexico, S. A. de C. V. and is placed on the Mexico City-Los Angeles service via Acapulco.

At year’s end, the carrier is virtually shut down by a paralyzing strike.

The Mexican government is forced to break the strike by taking temporary control of Mexicana on January 29, 1959. Plans for and rumors of a merger with Aeronaves de Mexico, S. A. de C. V. collapse. Briefly, in September, the leased Britannia 302 flies nonstop Mexico City-Los Angeles service.

En route from Mexico City to Merida de Yucatan on September 8, a DC-3 with 3 crew and 12 passengers is rocked by a bomb blast at 11,000 ft. over the Bay of Campeche. A passenger, suspected of having the explosive device in his suitcase, is blown out an access door, while all of the crew and six passengers are hurt. Despite a fire, which is extinguished on board, the aircraft makes a successful forced landing at Poza Rica, Vera Cruz, with no additional injuries.

On October 27, four de Havilland DH 106 Comet 4Cs are ordered.

Becoming the first Mexican airline to fly jetliners, Mexicana takes delivery of its initial Comet 4C on January 14, 1960. It is painted in a white-top fuselage livery with a blue cheatline along the windows, large “Mexicana” titles above the windows forward of the wings, and a tail insignia that is a replica of the Aztec calendar. Following crew familiarization, it is placed on the Los Angeles route, now known as Azteca de Oro (Golden Aztec) on July 4 and the Chicago service on August 10.

A DC-3 with 3 crew and 15 passengers makes a forced landing near Juchitepec on September 28 (8 dead). The fifth Comet 4C, the Golden Knight, is delivered on November 29.

During the year, the carriers Transportes Aereos Mexicanos, S. A. de C. V. and Aero-Transportes, S. A. de C. V. are purchased and merged, further strengthening Mexicana’s domestic route network. In the fall, the second British jetliner is received and inaugurates flights to San Antonio, a route later extended to the new destination of Houston.

Comet 4C service begins to Dallas on April 5, 1961 and Miami on November 8 as the fleet of de Havilland jetliners reaches three. In terms of passenger miles flown, the carrier is now the 2nd largest in Latin American and the 37th largest in the world. Despite this showing, the carrier’s finances are uncertain.

A crippling strike hits the carrier from April 1 to May 18, 1962 and at the end of May, de Havilland forecloses on the three Comet 4Cs, obtaining a $12-million lien on Mexicana assets and income. In March 1963, single-class service is introduced on foreign routes while domestic fares are cut 25%. The Comet 4Cs are returned to service in 1964. On November 1-2, the airline is idled by a ground crew strike.

Services begin to Miami from the island of Cozumel in 1965 and Comet 4C flights start to Puerto Vallarta. Two Comet 4s are acquired from British Overseas Airways Corporation (BOAC) late in the summer. In October, a $20-million order is placed for four Boeing 727-64s. High operating costs in 1966 lead to a $4.6-million loss; the B-727-64 order is cut to three.

While on final approach to Mexico City on January 30, 1967, a DC-6 with 3 crew and 26 passengers stalls and crash-lands near Merida; there are no fatalities.

Wage increases, Comet operating costs, competition from U. S. airlines, and the failure to obtain additional American gateways when added to a $13-million debt bring on the carrier’s greatest crisis during the year. In August, the San Antonio-Dallas and Miami-Cozumel routes are suspended.

On September 23, the board of directors meet to consider alternatives, including bankruptcy. Construction magnate Crescencio Bellesteros purchases controlling interest (including the first Pan American World

Airways’ last 35%) and the courts allow a deferred payment debt service plan. The year’s loss is $3.2 million.

Bellesteros officially obtains Pan Am’s 35% shareholding and complete control of Mexicana Airlines on January 13, 1968. To revive the ailing airline, 10 airports held since the 1930s are sold to the government, an intensive publicity campaign is undertaken, and the 3 B-727-64s are received and placed in service. The latter will be seized in the U. S. late in the year for nonpayment of bills to the Bank of America.

Acapulco to Chicago via Mexico City service begins on November

18. The same day, two armed men hijack a DC-6 with 23 aboard on a domestic flight from Merida to Mexico City and force it to fly to Cuba; the plane is released from the island later in the day.

In December, Max Healey is succeeded as president/CEO by Manuel Sosa de la Vega. The workforce comes to fear massive layoffs and the pilots threaten another big strike. The net profit for the year is $624,000.

The B-727-64 order is increased to four on January 28, 1969 and a lease is concluded with Pacific Southwest Airlines (PSA) to provide jetliners until the release of the B-727-64s in U. S. custody can be arranged in late spring.

Meanwhile, on February 8, a lone hijacker is overwhelmed as he attempts to hijack a DC-6 during a flight from Mexico City to Villahermosa.

New aircraft livery is now applied and flight attendants receive new uniforms. A route exchange is arranged with Aeronaves de Mexico, S. A. de C. V. whereby Mexicana receives access into Acapulco while Aeronaves receives rights into Guadalajara and Puerto Vallarta.

While on descent to Monterrey on June 4 following a service from Mexico City, a B-727-64 with 7 crew and 72 passengers, strikes high terrain and bursts into flame; there are no survivors. While on a July 26 domestic flight from Minatitlan to Villahermosa, a DC-6 with 32 aboard is diverted to Cuba. A DC-6 is damaged beyond repair in a hard landing at Tuxtla on August 20; there are no fatalities. While attempting to land in a rainstorm at Mexico City after a September 21 service from Chicago (ORD), a B-767-64 with 7 crew and 111 passengers, strikes a railway embankment at Lake Texcoco and crashes (27 dead).

The summer’s accidents raise a storm of public outcry. Additional routes are reopened or originated in the fall: Miami-Cozumel on September 8 and Chicago-Acapulco via Mexico City on December 4.

Three JATO-equipped B-727-264As are ordered in the spring of 1970. En route from Merida to Mexico City on May 24, Flight 600, a B-727-64 with 79 passengers is taken over by four armed men who order it flown to Cuba. The hijacking comes as a surprise, given Mexico’s excellent relationship with Fidel Castro’s government. It is initially surmised that the deed is in retaliation for the death of a Guatemalan guerrilla leader in Mexican custody four years earlier. It turns out that three of the perpetrators are Dominican prisoners released to Mexico in exchange for a U. S. diplomat kidnapped earlier in the year. After refueling at the Mexican capital, the aircraft is flown to Cuba.

The first B-727-265A to arrive is the Mexicali, delivered on November 9.

On December 15, 1971, Mazatlan-Denver service is initiated. The fleet now comprises 3 Comet 4Cs, 2 B-727-64s, and 7 DC-6s.

A DC-6 explodes while attempting an emergency landing in the jungles near Bacalar on the Yucatan Peninsula on January 6, 1972 (23 dead). Also during the month, another DC-6 is withdrawn and sold to TAC (Transportes Aereos de Cargo, S. A. de C. V.) On May 6, Merida-San Juan flights commence.

En route from Monterrey to Mexico City on November 8, Flight 705, a B-727-64 with 110 passengers is taken over by 5 gunmen. At the national capital, they achieve the release of 6 political prisoners and a ransom of $330,000, plus automatic weapons and a doctor for a wounded hostage, before forcing the plane to fly to Havana the next day. Cuba returns the plane, passengers, money, and weapons later in the day.

Dallas service is resumed on December 13. Additional Boeing trijets are delivered throughout the year and a fifth consecutive net profit is earned.

The fleet in 1973 includes 8 B-727-64s, 7 B-727-264As, and only 2 DC-6s. On February 17, DC-6 nonstop service is inaugurated from Mexico City to Cancun, now a growing resort area. The employee population is now 3,986. A B-727-64 hits a mountain peak on Mexico’s Pacific coast on June 20 and explodes (27 dead). A Mexico City-Kansas City jet route is launched eight days later.

A security policeman dressed as a crew member is able to subdue a lone assailant who has taken over a B-727-264A at Mexico City Airport on October 10 before the aircraft departs.

While on final approach to Mazatlan on October 20, a B-727-14 with 6 crew and 117 passengers, mistakenly lands in a field 1.5 mi. short of the runway, losing its entire undercarriage in the process; although the Boeing must be written off, there are no fatalities.

Enplanements for the year are 2,100,336.

The employee population in 1974 stands at 4,202. The Compania Mexicana de Aviacion, S. A. de C. V.’s fiftieth birthday is celebrated on August 24 and a new logo is introduced. Three additional B-727-264As join the fleet and service begins to St. Louis and Kansas City on December 1. Additionally, a new training center for flight attendants is opened, along with a new computerized reservations and communications system. Work is begun on a new maintenance base at Mexico City. Meanwhile, on December 10, the carrier resumes weekly flights to Havana after a break of almost a decade.

Passenger boardings jump 20.2% to 2,632,000 and freight traffic is up 14.2%.

The workforce is increased to 5,015 in 1975. One B-727-64 and the last two DC-6s are retired as two more B-727-264As are ordered and two are leased out. In July, Miami-Cancun B-727-264A service is kicked off; additional routes added during the year include Havana-Yucatan and Mexico City-Istapa and Zihuatenejo.

Passenger bookings soar 20.1% to 3,113,318, but cargo dips 6.8% to 29.34 million ton kilometers.

Airline employment grows 6.3% in 1976 to 5,450. In January, the company receives the 1975 “Technology Management Award” from Air Transport World magazine.

The carrier is awarded a route from Mexico City to London and plans are made to inaugurate it several years in the future.

Passenger traffic swells 22.5% as 3,814,538 passengers are carried; freight advances by 23.1%. A 10th consecutive year of profits is reported.

In July 1977, B-727-264A service is inaugurated to San Jose del Cabo in Baja California. Later, the largest maintenance center in Latin America is dedicated at Mexico City and a new charter division is created. The fleet now includes 16 B-727-264As and 7 B-727-64s, with 2 of each type on order.

A record 4.5 million passengers are transported on the year and a net $7.9-million profit is earned. In terms of passenger boardings, the carrier is now the largest in Latin America; it carries 40% of all commercial traffic between the U. S. and Mexico.

The workforce is increased 31.4% in 1978 to 8,047. In January, the Bank of America (which had seized two of the airline’s B-727-64s in 1968) awards Mexicana a $45-million loan—without government guarantee or U. S. Export-Import Bank financing. The Los Angeles sales and marketing unit is moved to its present address and the fleet is expanded through the addition of three B-727-64s and a B-727-264A. A huge new maintenance base is opened at Mexico City, the largest facility of its type in all of Latin America.

In December, service is inaugurated to Harlingen and San Francisco.

The company becomes the first airline in Latin America to carry 5 million passengers in a single year as boardings jump 18.5% to 5,250,000; cargo is up 13.3%. On revenues of $236.8 million, expenses are up 29% to $212.1 million, leaving profits of $24.6 million (operating) and $12 million (net).

Six additional B-727-264As join the fleet in 1979 and orders are placed on September 24 for three DC-10-15s for 1981 delivery. The wide-bodies will be especially designed by McDonnell Douglas to accommodate Mexico City’s hot and high operations. Service to St. Louis and Kansas City is suspended in July, but launched to Seattle on December 1. Other route additions include San Francisco to Mazatlan and Puerto Vallarta and Los Angeles to Mexicali and Hermosillo.

Cargo is up 15.6% and passenger boardings accelerate 16.6% to 6,207,403. Revenues rise 31.2% to $305.5 million and expenses jump 32.7% to $273.7 million; net income falls 19% to $9.7 million.

The fleet in 1980 comprises 13 B-727-64s and 27 B-727-264As and is the largest B-727 assemblage outside of the U. S. The workforce totals 8,635. Routes are opened to Tijuana and Philadelphia, the latter the first gateway in the northeastern U. S.

Passenger boardings surge ahead by 21% to 7,571,000 and freight rises 26.4%.

Airline employment in 1981 is reduced 12.81% to 10,580. The first of three DC-10-15s to be delivered on the year arrives at Mexico City on June 15 and enters service on July 1; the fleet is also strengthened through the addition of eight more B-727-264As. Also in July, the Compania Mexicana de Aviacion, S. A. de C. V.’s sixtieth birthday is celebrated.

A new Mexico City reservation center is placed on line and construction is started on a Guadalajara maintenance base. Mexico City-Ciudad del Carmen flights begin.

Passenger bookings are up 7.7% to 8,151,786 and cargo accelerates by 4.5% to 710.23 million FTKs. Revenues rise 28.1% to $586.7 million, expenses jump 26.6% to $548.75 million, the operating profit surges upward 53% to $37.96 million, and the net profit is $32.7 million.

The workforce is increased 2.4% in 1982 to 12,391. As the world and national depression deepens bringing inflation, peso devaluation, and a halt to currency transfers to the U. S., Mexicana Airlines again faces a severe crisis. An order for six B-727-264As is cancelled. The Lopez Portillo government, just prior to its leaving office, attempts to nationalize the carrier and merge it with Aeromexico (1) (Aeronaves de Mexico, S. A. de C. V.) . On July 15, the government purchases 54% majority interest and on July 29, President Enrique M. Loaeza Tovar is appointed director general of the combined carrier, as Mexicana CEO Sosa de la Vega is forced into retirement.

The new director general now faces a multitude of problems, not the least of which is a threatened strike and the seeming impossibility of integrating the two airlines. The new government of Miguel de la Madrid scraps the merger plan in December, reinstating Sosa de la Vega as director general of Mexicana, asking him merely to rationalize and coordinate with its brief partner, while Rodolfo F. Valdez becomes president.

Passenger boardings for the year drop 6.5% to 7,623,000, and freight is off 24.5% to 57.87 million FTKs. Revenues decline 24.3% to $443.9 million, and a net $22.4-million loss is suffered, the first financial failure in 15 years.

The employee population drops 8% in 1983 to 11,393. Three additional DC-10-15s are delivered in January and February. New routes are opened Mexico City-Nuevo Laredo via Victoria, Chicago-Guadalajara via Puerto Vallarta, and Dallas-Cancun. The carrier now joins the American Airlines SABRE reservations system. The cargo subsidiary TAM (Transportacio Aerea Mexicana, S. A. de C. V.) is formed. Equipped with a DC-8-63F, it inaugurates all-cargo operations over a Mexico City-Luxembourg via Houston route.

A new engine overhaul facility is occupied at Queretaro while a second maintenance base is opened at Mexico City. At the main Mexico City base, a CAE-built DC-10 simulator is installed.

En route from Mexico City to Miami on September 1, a B-727-264A with 144 passengers is taken over by a lone gunman. When the aircraft lands at Merida for refueling, undercover police come aboard and overpower the perpetrator.

Passenger boardings are up 6.2% to 8,095,183 and freight is up 0.7% to 58.28 million FTKs. The carrier returns to profitability, posting a $64.7-million operating profit and a $26.1- million net profit on total revenues of $403.1 million.

The workforce is increased 16.4% in 1984 to 13,221. The fleet now includes 5 DC-10-15s and 39 B-727-264As. Service is launched San

Francisco and Denver to San Jose del Garbo, a new cargo terminal is opened at Mexico City, and the carrier transfers to the United Airlines Apollo reservations system.

A new $160million, 34-story Mexico City corporate headquarters building is also occupied and a total of 183 charters are flown.

Freight jumps 28.1% to 74.63 million FTKs and passenger boardings ascend 3.9% to 8,414,000. Revenues advance 19.9% to $482.9 million and expenses are up 23.2% to $416.6 million; the profits are $66.3 million (operating) and $30.2 million (net).

The workforce in 1985 stands at 12,986. Several new domestic Mexican as well as Caribbean routes are opened and two B-727-264As are leased. The charter program is upgraded as a total of 350 tour flights are made from U. S. gateways to the holiday locations of Gancun, Acapulco, and Ixtapa through August.

After the September earthquake, the carrier’s reservation network serves as a primary means of communication with stricken Mexico Gity.

Passenger bookings climb 6.1% to 8,652,000 and freight is up 12.1% to 83.65 million FTKs. Revenues total $538.6 million and expenses are $522.3 million, leaving an operating profit of $16.3 million and a record $43.5-million net profit.

During takeoff from Mexico Gity for a service to Los Angeles via Puerto Vallarta and Mazatlan on March 31, 1986, the left main landing gear brake of Flight 940, a B-727-264 with 8 crew and 159 passengers, overheats, causing a tire to burst in the wheelwell. The explosion ruptures fuel and hydraulic lines, while also severing electrical cables. As the flight proceeds north, the cabin decompresses and an emergency is declared. Spilt fuel catches fire, causing a massive fire; with control of the plane lost, it crashes into a 9,000-ft. mountain in the remote San Andreas range 100 mi. from Mexico Gity, near the village of Miguel el Alta. There are no survivors. Terrorism will initially be thought the cause of the disaster, but examination will reveal the true reasons for the tragedy.

Three more B-727-264As are chartered during the summer as several new U. S. services are introduced.

On July 18, jetliners from Mexicana and American Airlines, carrying a total of 266 passengers, both try to land on the same runway at Dallas (DFW) and nearly collide before pulling off. The sixty-fifth anniversary is celebrated, a new Mexico Gity cargo terminal is occupied, and a secondary maintenance base at Guadalajara is opened.

Gustomer bookings decline 9.8% to 8,072,211 and cargo is down 1.9% to 82.07 million FTKs. Gosts exceed income and lead to losses: $27.8 million (operating) and $59 million (net).

Airline employment falls 3.9% in 1987 to 1,661 and the fleet includes 40 B-727-264As and 5 DG-10-15s. Hubs are created at Puerto Vallarta and Gancun and as a result of the new U. S.-Mexico bilateral air agreement, routes are stretched to several new American destinations and a reservations system is opened in San Antonio. Flights to San Antonio from Mexico Gity are now offered once daily and five times a week at night.

Passenger boardings fall another 2.7% to 7,856,513, but freight recovers, climbing 11.7% to 91.68 million FTKs. Revenues ascend by 15.5% to $597 million and costs are held low enough to allow a $26.5-million operating profit. The net downturn deepens, however, to $65.4 million.

The workforce is cut 7.3% in 1988 to 13,027, but still remains the second largest among Latin carriers. The number of B-727-264As in the fleet is cut to 37. The U. S. route network reaches a total of 15 cities with the addition of New York on May 12 and Tampa later in the year. Also in May, the carrier becomes the first Latin American airline to join the System One computerized reservations network of Texas Air Gorpora-tion (TAG). New union contracts aimed at increasing employee productivity are negotiated and a new hub and maintenance center are occupied at Guadalajara.

Although the full privatization that was expected does not occur, record traffic and profits do. Gustomer bookings recover and ascend 7.4% to 8,438,790, tops among Latin American airlines. Indeed, Mexicana now transports 43.4% of all travelers flying between Mexico and the U. S. Gargo does slightly better, climbing by 9.3% to 108.21 million FTKs. Revenues swell 22.8% to $732.8 million and allow an operating profit of $71.2 million and a record net gain of $135.1 million.

Gompany employment is reduced by another 3.8% in 1989 to 12,538. Service is inaugurated to Gancun and Zacatecas from Los Angeles, from San Francisco to Los Gabos and to Gancun via Guadalajara, and from Mexico Gity to Denver via Mazatlan and Juarez. Daily Mexico Gity to New York roundtrip service begins in May and a short-term fare war is fought over the route with Continental Airlines and Pan American World Airways (1). During the first six months of the year, the airline transports 63.5% of all traffic on this nonstop route.

The government’s interest is reduced via partial privatization on August 15 to 40% as a new investment group, headed by Ghase Manhattan Gor-poration, Drexel Burnham Lambert, financier Sir James Goldsmith, and the Mexican conglomerate Grupo Xabre, pays $140 million for 25% shareholding. New leadership assumes office on August 22: Ghairman Garlos Abedrop, Vice Ghairman Jose Giral, and GEO Guillermo Martinez Garcia.

These officials pledge to purchase 100 new jetliners valued at $2 billion in the next decade and undertake complete modernization, including introduction of the most advanced administrative and passenger reservations computer systems. During October, daily Mexico Gity to San Jose, Galifornia, via Guadalajara service is inaugurated.

Passenger boardings inch up 0.7% to 8,501,505 and freight rises 8.6% to 117.57 million FTKs. Revenues advance 1.6% to $744.39 million, expenses are up 9.2% to $722.9 million, and the operating profit plunges to $21.49 million. The previous year’s record net profit is cut to $12.99 million.

Employment continues to fall in 1990, down 3.9% to 12,052. The first stage of the new owners’ modernization plan is announced as a $17-million upgrade of hardware and systems for passenger, cargo, and administrative services. Much of the latter is designed to change corporate culture from that of a state-owned enterprise into a private sector operator. Four-times-per-week nonstop service is initiated from Juarez and Mexico Gity to Denver in January and twice-weekly flights to Denver commence from Gancun.

In the first half of the year, service is also inaugurated from Mexico Gity to San Jose via Guadalajara. Two regional carriers, Aero Caribe, S. A. de C. V. and Aero Cozumel, S. A. de C. V., are taken over to create a feeder network known as Mexicana Inter. During the spring, a new business-class product is introduced, along with automated check-in at Mexico Gity.

A number of new nonstop routes are initiated into the U. S. on July 1, including Gancun to San Antonio, Orlando, and Miami, Los Gabos to Seattle, Monterrey to Los Angeles, and Mexico Gity to Miami.

Also in July, a letter of intent, worth $1.1 billion, is signed with Airbus Industrie covering the purchase of 30 A320-231s.

During August, the company’s U. S. service areas are restructured from 14 to 4 and in September, the airline begins to offer special inclusive vacation packages from America to 9 Mexican beach resorts.

Overall customer bookings climb 6.6% to 9,059,498 (the high watermark in company boarding figures) and cargo ascends 5% to 113.81 million FTKs. Expenses exceed income and there are losses: $68.4 million (operating) and $38.4 million (net).

The fleet in 1991 includes 2 owned B-727-2Q4As, 28 B-727-264As, and 1 DG-10-15. The remainder of the aircraft employed are leased: 2 B-727-2A1As, 4 B-727-2J7As, 1 B-727-2M7A, 2 each B-727-2Q4As and B-727-2Q6As, 4 B-727-225As, 1 B-727-281A, 1 DG-10-10, and 4 DG-10-15s.

First-class service is inaugurated in February. In March, service is suspended to Philadelphia and Baltimore in the U. S. and San Juan, Puerto Rico; losses for the first six months total nearly $40 million. During this time, the carrier’s cargo operation is split off and formed into a separate division or profit center, Mexicarga, S. A. de G. V. Jose A. Mer-diola is named president of the subsidiary and he is given a B-727F with which to haul freight.

Executive Vice President-Sales Jose Kuri-Brena quits in May and after only 20 months service, CEO Garcia unexpectedly resigns in July. He is succeeded by former Mexican Social Securite Institute (IMSS) General Director Ricardo Garcia Sainz.

Meanwhile, beginning in June and continuing into the summer, a new livery is applied to the B-727-200 fleet. Tails feature the logo and reproductions of pre-Colombian art while the all-white fuselages sport the airline’s name painted in black letters; interiors are also refurbished.

The nine designs draw significant public attention: Mitla, based on a design from mosaics at that archeological site northeast of Oaxaca; Epa-zoyucan and Meztitlan, based on friezes at the 16th-century Augustinian convents at Hidalgo; Toluca, from the textile designs of Temoaya; Na-yarit, a Huichol weavers design; Saltillo, based on serape designs at Coahuila’s capital; Olinala, reproductions of lacquer patterns from Guerrro; Azcapotzalco, based on a carved stela; and Talavera, based on Pueblo ceramic designs.

The regional Aerolibertad, S. A. de C. V. is taken over and becomes a Mexicana Inter partner under the name Aero Jalisco, S. A. de C. V. Service is reduced on a number of unprofitable routes and a marketing alliance is concluded with long-time rival Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.). The first of six A320-231s, leased from the manufacturer, are on hand by December, at which time the airline ranks as one of the nation’s 10 largest companies in terms of sales volume. Upon its arrival at Mexico City from Toulouse, the new European-built narrow-body is the first to receive a new individual tail pattern based upon Mexican art.

Passenger boardings decline 1.8% this year to 8,548,962 and freight is off 8.3% to 104.72 million FTKs. Revenues slip 0.6% to $977.6 million, but costs are high, leaving an operating loss of $41.26 million. The net loss inches up to $39.25 million.

The workforce stands at 11,200 at the beginning of 1992 and the fleet is increased by the addition of six chartered A320-231s and four Fokker 100s. Several Boeings are sent to the U. S. for conversion into B-727Fs. The combined Mexicana Inter fleet includes 15 F.27 Friendships.

On March 6, Frecuenta, Latin America’s most comprehensive frequent flyer program, is introduced. With the delivery of the ninth A320-231 in July, it is decided that it is too expensive to paint the type’s tails in original art schemes so it is requested that future examples have designs repeated. At this point, Airbus Industrie is requested to defer deliveries of eight A320-231s, despite the fact that the type has proven successful, even flying the long-haul, 2,300-nm. route from Bogota to Santiago

Once the largest airline in Latin America, Mexicana now loses that position to Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.). Still, before the month is over, the company has expanded service; a new route is opened from Mexico City to Buenos Aires and the old Los Angeles to Mexico City route is continued on to Bogota.

Corporacion Falcon, S. A. de C. V. assumes control of the airline in August and declares a $72-million loss. These bad times are reflected in statistics that are released for only the months through July. During this period, customer bookings are off another 5.7% to 4,592,691 and cargo is down 9.8% to 56.75 million FTKs.

Mexicana, which has flown to Cuba for the past 17 years and currently has 4 regular weekly flights to Havana, introduces first-class service between Mexico City and the Cuban capital on December 18.

In 1993, CEO Julian Terminel Saldana oversees a workforce of 7,500, down 33.1% from the previous year, and a fleet that includes 10 owned and 6 leased A320-231s, 2 leased B-727-2A1As, and 24 B-727-264As, 2 of which are leased to AeroPeru (Empresa de Transportes Aereos de Peru, S. A.). Also included are 1 chartered DC-10-10, 10 Fokker 100s, and 3 chartered and 2 owned DC-10-15s, the latter 2 also leased to the Peruvian flag carrier.

A total of 38 markets are served in Mexico, the Caribbean, Central America, and the U. S. Among points visited in the U. S. are Los Angeles, San Jose, San Francisco, Seattle, Denver, Dallas (DFW), San Antonio, Chicago, Baltimore (BWI), Philadelphia, New York, Miami, and Tampa.

A 30-year relationship ends on January 5 when the airline cancels its twice-daily nonstop roundtrips between Mexico City and Dallas (DFW). Low patronage and competition on the route, which once featured seven daily roundtrips, is given as the cause.

Also in January, the company signs a new two-year labor agreement with the machinist union representing 650 U. S.-based employees. Citing strong competition from American Airlines, the airline discontinues service between Mexico City and Dallas (DFW). Late in the month, it is; however, able to announce that, in a rare gesture of confidence, the U. S. FAA has granted it a two-year, rather than a one-year, renewal of its foreign repair station license.

The parent Corporacion Falcon, S. A. de C. V. board joins with that of rival Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) on February 17 to announce a strengthening of their strategic alliances in the areas of shared maintenance, cargo, maintenance, and purchasing. It is claimed that there will be no merger; both companies will retain their independent identities. Cost-cutting and other restructuring measures do not bring desired results and thus 54.7% majority shareholding is sold to Aeromexico on February 26 for $110 million in cash and credits. Aeromexico Chairman Gerardo de Prevoisin assumes the same post with Mexicana on March 1 and the Mexican government approves the takeover in May.

In early September, the “Alas de America” strategic alliance is unveiled as joint scheduling, computerized reservations, frequent flyer, yield management, purchasing, and labor agreements are signed with Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) and AeroPeru (Empresa de Transportes Aereos de Peru, S. A.).

On September 10, Augusto Bojorquez, president of the Mexican Association of Travel Agents (Asociacion Mexicana de Agencias de Via-jes), files a complaint with the Secretaria de Comunicaciones y Trans-porte charging that Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) and Mexicana are putting pressure on his members to give preference to those airlines when issuing tickets or selling promotional packages. There is great concern among members of the travel and hotel community, as well as other airline competitors, that the two large carriers will gain a monopoly over the Mexican domestic airline market.

Mexicana begins to code-share with the former on flights from Mexico City, Cancun, and Merida to Miami and from Mexico City to Acapulco and Huatulco. It also begins to share its code with the Peruvians on domestic Mexican routes as well as on frequencies from Cancun to Buenos Aires via Lima. Code-sharing is started with Alitalia, S. p.A. during November on a route from Mexico City to Miami.

Passenger boardings for the year fall 13.8% to 6,887,000 and freight is down 23.6% to 69.99 million FTKs. Revenues total $723.68 million, but expenses are $779.65 million. An operating loss of $55.97 million is suffered with a net loss of $37.32 million following. The company—for the first time—is no longer Mexico’s largest national airline, an honor lost to Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.).

Airline employment is cut 3.1% in 1994 to 6,824. The company joins with Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) on February 17 to confirm a further strengthening of a previous marketing alliance and to quash rumors of merger. Ten days later, however, Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) pays $110 million in stock and cash to purchase controlling interest. During the month, the carrier completes the private placement of $50 million in convertible debt and obtains a $135-million loan from Bancomext. It also abandons first-class service in favor of an all-economy “Premium Class.”

At the end of April, several Mexican regionals join with TAESA (Transportes Aereos Ejecutivos, S. A. de C. V.) in a merger of support services designed to make the carriers more competitive with Aeromex-ico (2) (Aerovias de Mexico, S. A. de C. V.) and Mexicana. Under the arrangement, the carriers share reservation systems, maintenance facilities, ticketing, airport facilities, hangars, and work crews.

Air L. A., the U. S. regional, becomes a marketing partner in July. Under terms of the arrangement between the two airlines, the California-based operator, which has recently received its third Fairchild Metro 23, will provide connecting flights between Los Angeles, Phoenix, and several California communities.

The carrier continues losing large amounts of money, $39 million in the second quarter alone. Unable to keep up with aircraft lease payments and owing $20 million for them, the airline faces the prospect from European export credit agencies of the repossession of 10 A320-231s. The company also determines that its DC-10-15s are too expensive to operate and orders them withdrawn and sold.

On September 5, Geraldo de Prevoisin Legorereta, chairman of both Mexicana and Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.), resigns and is succeeded by Jose Luis Liamosas Portilla, an insurance executive and member of the board of directors.

It is reported in October that, after emptying his office and purging his computer files, former CEO de Prevoisin Legorereta has left Mexico. At the same time, it is acknowledged that an additional $50-$70 million in company liabilities have been uncovered and cannot be paid. Mexico issues an arrest warrant for the talented, once highly regarded local entrepreneur as creditors and lenders make plans to take over the airline.

Despite a difficult couple of years, advertising still proudly proclaims the company to be the most experienced airline in North America and the fourth oldest in the world. The enticing message is largely disregarded as, in December, the nation, plagued by assassination, a rebellion in the state of Chiapas, and a shaky economy, devalues its peso.

On the year, customer bookings recover, rising 5.4% to 7,194,360; however, cargo falls another 7.4% to 797.08 million FTKs. Continued economic difficulties at the national and carrier levels cause revenues to plunge to $565.6 million and expenses to top out at $600.89 million. As a result, the pretax loss is $35.28 million and the net downturn skyrockets to $359.94 million.

Airline employment in 1995 stands at 6,780, a 0.6% decrease. The company and Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.),

Now run by a consortium of banks, now face—along with the country— a six-month recession that has a horrendous impact on traffic.

In April, a marketing agreement is signed between Mexicana and KLM (Royal Dutch Airlines, N. V.) . An order is placed for 10 Fokker 100s, the first of which arrives under lease from GPA Group in June.

The carrier’s Senior Vice President Fernando Flores is named CEO in August. He immediately unveils a “100-Day Plan” designed to reinvolve staff, boost employee morale, and eliminate the carrier’s weaknesses. It is revealed at this point that the former chairman, de Provisin Legorereta, who has been formally accused in court of embezzling $72 million, further contributed to his company’s decline the previous year by making an $8-million donation to the country’s ruling political party.

On August 14, the government approves the financial revamping plans put forward for Aeromexico (2) (Aerovias de Mexico, S. A. de C. V.) and Mexicana, with the provision that the group of banks controlling the two companies must be split up within three years. New international arrangements are concluded during the third and fourth quarters.

Beginning in October, joint venture passenger and cargo services are launched with the Venezuelan carrier AVENSA (Aerovias Vene-zolanas, S. A.) over a route from Caracas to Mexico City via Panama City.

The new arrangement with KLM (Royal Dutch Airlines, N. V.) begins on October 26, a date celebrated as the fortieth anniversary of the first KLM flight to Mexico City. The Dutch airline’s schedule to Mexico is altered; service is no longer through Houston, but nonstop thrice weekly and via Orlando the other four days. KLM’s passengers are able to smoothly transfer to Mexicana’s extensive domestic network served by 250 flights a day.

A connection agreement is signed with Japan Air Lines Co., Ltd. (2) in November that provides for the seamless transfer of passengers to partner flights departing Los Angeles. A similar compact is inked with Aeroflot Russian International Airlines (ARIA) providing for the linking of ARIA passengers to other flights into Colombia, Central America, and South America from Mexico City.

Enplanements drop 8.7% to 6,572,629, but freight inches back up by 0.7% to 53.89 million FTKs. Still, finances are such as to allow a $56.36-million operating profit.

The workforce is cut another 10.1% in 1996 to 5,840. As the year begins, only the modified-green Nayarit tail color scheme is retained. On March 18, the “Alas de America” strategic agreement with AeroPeru is expanded as the Mexican airline begins dual-designator flights from Lima to Buenos Aires and from Santiago to Bogota.

The fiscal picture soon also becomes one of celebration. CEO Flores and the board of directors are able to negotiate new loans and other financial agreements that will capitalize the airline’s outstanding debts and result in the purchase and lease-back of the A320-231s. The arrangements will be handled by a new financial corporation, CINTRA, S. A. de C. V., which is led by banker Ernesto Martens, who has been retained by several banks to put a new package together. Government approval for the CINTRA’s restructuring approach receives government approval on June 4.

Weekly nonstop return service is initiated on June 24 between Ixtapa and Zihuatanejo and Los Angeles. Offering discounts and bonuses in conjunction with the new service are the Krystal, Westin, Dorado Paci-fico, Qualton, Presidente Forum, Sheraton, Doubletree, Puerto Mio, Posada Ral, and Fontan hotels.

On June 28, CINTRA offers to exchange Series A CINTRA shares for those of Mexicana; as a result; CINTRA receives 99.95% of the carrier’s outstanding share capital. In essence, the nation’s banks trade $1 billion for most of the carrier’s equity. A new management concern Servicios Corporativos CINTRA is established to oversee changes. Mexicana, on October 22, will cease to be a publicly traded company in Mexico.

New routes are inaugurated to Orlando and Las Vegas as the Compa-nia Mexicana de Aviacion, S. A. de C. V. celebrates its seventy-fifth anniversary as the world’s fourth oldest airline on July 12. A remodeled DC-3 and a replica of the 1921 Lincoln Standard will fly around the country assisting in the festivities. The next day, two more night roundtrips are added to the five A320-231 services already provided between Mexico City and San Antonio.

The Douglas transport, loaned to the carrier by the Fuerza Aerea Mexicana, is painted in the pioneer’s colors and christened Capt. Andres Fabre Tiran for the airline’s first DC-3 pilot. When the plane is exhibited at the anniversary ceremony, Capt. Tiran is in attendance.

During the summer, the downtown Mexico City headquarters building, La Torre de Mexicana, is put up for sale with a $50-million price tag.

A DC-9-15F is leased by the Mexicarga, S. A. de C. V. division when the winter season begins in October.

A comprehensive alliance is entered into with United Airlines on November 25. It provides for frequent flyer program linkage, joint programming, advertising, promotions, ground handling, airport lounges, and cargo cooperation. The two will share codes on flights within the U. S. and throughout Mexico and Central America, and have access to each partner’s international networks beginning the following May.

Two B-757-2Q8s are leased from the International Lease Finance Corporation (ILFC) in December; both wear the Nayarit tail design.

An A320-231 with 169 passengers is evacuated at San Jose Airport on Christmas Day following receipt by the company of a bomb threat. Police and FBI agents search the plane and, after a five-hour delay in which no explosives are found, it is permitted to depart for its original destination of Guadalajara.

Customer bookings fall another 2% to 6,438,742. Operating income soars 25% to $837.06 million and expenses are up only 21.7% to $746.48 million. Operating gain climbs to $90.58 million.

The employee population grows by 12.7% in 1997 to 6,579.

While descending through 26,000 ft. toward Chicago (ORD) following a flight from Durango on March 2, Flight 199, a B-757-2Q8 with 202 passengers, experiences turbulence approximately 120 mi. S of the airport; 22 persons are injured, 4 seriously. The Mexicarga DC-9-15F is returned.

Business-class service, Clase Ejecutiva, is introduced during the early spring. A code-sharing pact is signed with ACES Colombia, S. A. in May and dual-designator flights commence on flights from Colombia to Santiago.

A major agreement, signed in April, is inaugurated with United Airlines in July. Its terms provide links to United’s global market for Mexicana and to Mexicana’s domestic network for United. Frequent flyer programs of the two companies are joined as are advertising and promotional activities. Connecting code-sharing via common points of service are activated throughout North and South America.

Five red diagonal stripes and the emblem of the company-sponsored Chivas soccer team are painted on a B-727-264 in September to honor the players’ success in domestic cup competition.

Also during the month, a major agreement is signed with Deutsche Lufthansa, A. G. Under its terms, the German major will assist the Mexican line in improving its customer services. A 12-month evaluation of Mexicana procedures will be undertaken, followed by a training program for its customer service personnel. Code-sharing will begin a year later.

A new annual contract is signed with the National Pilots Union in mid-October; it grants the flyers a 25% salary increase, plus a bonus for on-time arrivals as well as other benefits.

In celebration of its 40 years of Texas flights, the carrier, on November 3, adds twice-weekly roundtrip service between Mexico City and San Antonio.

Passenger boardings accelerate 15.7% to 7,452,706 while freight advances 14.6% to 64.2 million FTKs.

Airline employment in 1998 stands at 6,000 and the fleet, 56.9% of which is Stage-III certified, includes 24 B-727s, 3 B-757s, 14 A320s, and 10 Fokker 100s.

A fourth daily nonstop Mexico City to Chicago service is introduced on January 12.

Flight 721, a Fokker 100 with 48 passengers aboard, skids off the runway at Mexico City on March 3 after completion of a service from Laredo. No injuries are reported.

Traditionally known for its single-class service, Mexicana completes, by the end of April, the introduction of business-class on all of its domestic and international flights. It also completes interior renovations on all 51 of its aircraft, bringing them up to the service standards of its major partners.

Dual-designator services with United Airlines commence on May 1. Under terms of the alliance, Mexicana is able to place its codes on UAL flights from Mexico City to Los Angeles, San Francisco, San Jose, Chicago (ORD), and Washington, D. C. (IAD); from Chicago (O’Hare) to Washington, D. C. (DCA), Boston, and Denver; and from Los Angeles to Honolulu, Seattle, and San Francisco.

On May 11, business-class services are introduced on all flights from Mexico to the U. S., Canada, Central and South America.

Thrice-weekly A320-231 nonstops commence on June 6 from Oakland, California, to Guadalajara, with connections to Mexico City. A week later on June 13, twice-weekly A320-231 Cancun to San Juan service is inaugurated. On Saturdays, a service is run to and from San Juan via Mexico City and Cancun.

Daily B-727-264A roundtrips are inaugurated on July 11 from Mexico City to Miami. Twice-weekly A320-231 roundtrips begin on July 12 from Miami to Merida, Yucatan. Twice-weekly B-727-264A roundtrips commence on July 13 from Chicago (ORD) to San Luis Potosi, a new destination located on the plains of north central Mexico, with continuing service to Guadalajara. The same day, twice-daily B-727-264A roundtrips are launched between Chicago and Guadalajara.

On July 17, twice-daily A320-231 service is offered between Oakland and Zacatecas in Mexico’s silver-mining country, with continuing service to Mexico City.

In September, dual-designator services begin with Deutsche Lufthansa, A. G. to Washington, D. C. (IAD).

Also during the fourth quarter, the carrier successfully completes collective bargaining agreements with its pilots’ and ground personnel

Unions.

It is announced on December 18 that daily nonstop roundtrips will commence on January 12 between Mexico City and Newark.

Enplanements for the year inch up 0.4% to 7,503,000, while cargo traffic is up an equal amount, with 64.45 million FTKs operated.

Airline employment stands at 6,404 at the beginning of 1999 and the fleet includes 54 aircraft, 3 more than during the previous year. The daily Newark return service duly begins on January 11. It is followed next day by the start of thrice-weekly roundtrips from Mexico City to San Juan.

The swirling wake of a Mexicana B-757-2Q8 causes a UFS (United Feeder Service) ATP with 50 passengers to roll 45 degrees and break off its approach into Chicago (ORD) on January 27. Both ATC and the Mexican carrier are faulted for not maintaining a proper distance between the two airliners.

In honor of the visit of Pope John II to Mexico at the end of January, the B-757-2Q8 that he will employ while in country is rechristened S. S. Juan Pablo IIand begins to wear the papal coat of arms. Both the new name and markings will be worn for over a year.

On February 1, Deutsche Lufthansa, A. G. places its “DL” code on Mexicana services from Mexico City to Acapulco, Cancun, Guadalajara, Monterrey, and Merida.

On February 16, Mexico’s Federal Competition Commission (CFC) begins an investigation of the airline holding company CINTRA after a pilot’s union accuses its president, Ernesto Martens, of favoring growth in one of the company’s airlines to the detriment of the others via the transfer of shares, routes, and aircraft. The flyers describe the practice as a “predatory action.” The claim is followed by an unflattering CFC report describing CINTRA’s first three years.

Two days later, on February 18, trading of the shares in CINTRA is suspended on the Mexican Stock Exchange. The action comes in the wake of a CINTRA request that the government investigate an unauthorized release to the media of its 1998 earnings figures.

The Mexican government announces on February 24 that it is postponing any decision on whether or not to break up CINTRA. The case must be studied further by the CFC.

The Ministry of Transport and Communications weighs into the CIN-TRA controversy on March 8. Deputy Transport Minister Aaron Dy-chter informs Reuters, Ltd. that the Ministry of Transport and Communications wishes CINTRA to be maintained as a “whole company,” thought “not necessarily a monopoly,” in order that it might compete with larger foreign air carriers. Dychter also points out that the Ministry of Transport and Communications has received few complaints about CINTRA’s alleged monopolistic practices from its smaller domestic competitors.

CINTRA, the holding company for Aeromexico (2) (Aerovias de

Mexico, S. A. de C. V.) and Mexicana, announces on April 26 that it will be investing approximately $76 million in hush kits for its Boeing 727 fleet, in order that its units may continue flying into the U. S.

Also, the parent begins to negotiate with four U. S. banks for a $140-million bridge loan to cover a $134-million June loan payment to Mexico’s export development bank, Bancomext, and the financial group Grupo Financiero Inbursa.

Although San Jose has a curfew from 11:30 p. m. to 6:30 a. m. Pacific Time, airlines are allowed to fly in during those hours if they are delayed due to mechanical, weather, or ATC problems. The San Jose Mercury News reports on April 27 that the city attorney’s office has sent letters to six carriers threatening to sue or ban them from the airport and citing numerous violations of the curfew. The companies committing these “blatant violations” include, in addition to Mexicana, American Airlines, Northwest Airlines, Reno Air, Southwest Airlines (2), and United Airlines.

A comprehensive dual-designator marketing agreement is entered into with Air Canada, Ltd. on April 29. Mexicana also moves its Toronto operation from Terminal One to Terminal Two at Pearson International Airport, thereby inserting itself into the midst of Air Canada’s operations and reducing connection time for its passengers.

The comprehensive code-sharing alliance entered into with Air Canada, Ltd. on April 29 is formalized on May 3. The frequent flyer programs of the two majors are quickly linked. While meeting with other “Star Alliance” partners at Sydney during the day, Thamnoon Wanglee, president of Thai Airways International, Ltd. (THAI) tells reporters that Mexicana looks set to join the multinational airline pact later this year.

On May 13, under terms of the new code-sharing agreement with Air Canada, Ltd., Mexicana and its Canadian partner begin code-sharing on Toronto, Montreal, and Ottawa services via Chicago, thereby linking Air Canada’s network to Mexicana’s hub in Mexico City.

CINTA and the union representing flight attendants at both Aeromex-ico (2) (Aerovias de Mexico, S. A. de C. V.) and Mexicana reach agreement on May 19. The 1,500 workers will receive a 17.5% salary increase and a 4.5% benefits package boost, retroactive to May 1.