Experts Criticize Mexicana de Aviación Funding Plea
By Óscar Goytia | Journalist & Industry Analyst -
Mon, 04/29/2024 - 16:50
The recent request by the Ministry of National Defense (SEDENA) to the Ministry of Finance and Public Credit (SHCP) for over MX$20 billion (US$1.1 billion) for aircraft acquisition for Mexicana de Aviación and other purposes has sparked controversy and raised concerns over its legality and financial viability.
Pablo Casas Lías, president, National Institute of Legal-Aeronautical Research (INIJA), deemed the request both illegal and a high risk to public finances. He pointed out that the allocation to the state-owned airline and SEDENA's dual role as an air operator and airport operator are currently under judicial review and likely to be deemed unconstitutional by the Supreme Court of Justice. "These reforms were approved by the majority of Morena, in total violation of the legislative process and procedure," Casas Lías stated.
The potential consequences of this legal uncertainty are significant. Casas Lías warned that Mexicana de Aviación may lose its operating concession, and SEDENA may lose its authority to operate as both an air operator and airport operator simultaneously.
Furthermore, concerns arise regarding the financial prudence of the request. The allocated funds, totaling MX$20.8 million, are at risk of being squandered, including the MX$816 million spent on acquiring the Mexicana brand and the MX$8 billion pesos allocated from the 2024 Federal Budget. Casas Lías highlighted, "The absurd and unchecked expenditure that the airline has represented for Mexicans."
Critics argue that the revival of Mexicana de Aviación as a state-owned entity lacks feasibility and transparency. The Mexican College of Aeronautical Engineers called for the suspension of Mexicana de Avación's operations, citing its deficitary nature and unclear objectives. Jesus Navarro, President, asserted, "The decision to close Mexicana de Aviación is necessary. It is not viable as it stands; according to financial experts, it would not start making money until 2043."







