Domestic airlines may suspend operations.

MEXICO CITY, Apr 11, 2003 (Diario de Yucatan/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Arturo Barahona, assistant director of Aeromexico, warned that if urgent measures are not implemented to support the domestic airline companies, several of them would stop operations or would default on loans.The industry's situation "is disastrous" and "really complicated". The crisis is making several companies consider bankruptcy or ask to suspend debt payments.Airlines are looking for help but not subsidies, Barahona said. "We want support, not subsidies," he said.Due to the critical situation, Aeromexico dismissed 1,000 employees, including 100 last month.A few weeks ago, the company reported plans to apply a 50-peso (US$ 4.70) surcharge on ticket prices in an attempt to reduce the impact of insurance premium increases and surveillance personnel. The firm also retired four airplanes and reduced more than 4% of its operation costs. Barahona said the measures were implemented to face the increase of fuel prices.This article has been translated by Internet Securities, Inc. as a service to its customers. Internet Securities, Inc. makes no representation or warranty regarding the accuracy or content of the translation.

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