Mexican carrier TAESA (Transportes Aereos Ejecutivos SA), once the country's third-largest airline, has been declared bankrupt. Privately owned TAESA provided the main competition to Mexicana and Aeromexico, which, although committed to rival global alliances, are both controlled by state holding company Cintra. TAESA's demise can be traced to the crash of a McDonnell Douglas DC-9 in Mexico last year. A subsequent probe revealed poor finances and a questionable maintenance record, causing TAESA to be grounded. Heavy debts meant that no cash was available for safety improvements. TAESA has few assets, leasing most of its aircraft, one of which, a Boeing 737-300, was already being repossessed by International Aircraft Investors.

Source: Flight International