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FEDERAL GOVERNMENT & LOW-COST CARRIER AVIACSA EMBROILED IN BITTER LEGAL BATTLE.

Publication: SourceMex Economic News & Analysis on Mexico
Publication Date: 08-JUL-09 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
The Secretaria de Comunicaciones y Transportes (SCT) and Mexico's Aviacsa airlines are embroiled in a complex and bitter legal battle that could threaten the survival of the discount air carrier. The two sides initially squared off over Aviacsa's failure to meet safety regulations on several of its aircraft, but the dispute now includes the air carrier's failure to pay millions of pesos in fees to use Mexican airspace.

Officials allege safety violations

The SCT's Direccion General de Aeronautica Civil (DGAC) suspended Aviacsa three times in the span of a few weeks, but the airline twice was able to obtain court orders allowing it to keep operating.

The low-cost airline flies to 17 Mexican cities, including Mexico City, Guadalajara, and Monterrey, and to Las Vegas, Nevada.

The DGAC first suspended Aviacsa on June 2, after government inspectors deemed that the airline was endangering the flying public because it was not following adequate inspection and maintenance...

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