Mexicana, a recently launched state-owned airline in Mexico, is embroiled in a legal battle with a Texas-based company, SAT Aero Holdings. The Texas company filed a lawsuit against Mexicana in a Manhattan federal court for a staggering $841 million. The lawsuit alleges that Mexicana breached its contract, hindering SAT's ability to fulfill its obligations in getting the new airline operational.
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SAT claims they were contracted by the Mexican government, last year, to provide a comprehensive set of services to get Mexicana off the ground. These services included acquiring aircraft, securing related insurance, and recruiting and training pilots and crew. However, according to the lawsuit, Mexicana's alleged breaches of contract and unwillingness to collaborate on resolving arising issues left SAT with "no choice" but to take legal action.
The specific details of the breaches haven't been made public. Still, the lawsuit seeks $838.5 million, representing the total value of the contract, along with over $2.4 million in out-of-pocket expenses incurred by SAT. Interestingly, the Mexican Defense Ministry, which currently manages Mexicana's operations, has stated they have no knowledge of the lawsuit.
This lawsuit casts a shadow over Mexicana's launch, initiated by Mexican President Andres Manuel Lopez Obrador in 2023. The revived airline uses the branding of a previously bankrupt carrier, and this legal battle could potentially disrupt its operations and future. The lawsuit's outcome will likely depend on the specifics of the contract and the evidence presented by both parties in court.