Mexico's state-owned airline faces $841 million lawsuit in contract dispute

Mexicana Airlines was sued on Wednesday for at least $841 million by a Texas company that accused Mexico's new state-run airline of several breaches of contract that undermined its ability to help the carrier get off the ground. According to a complaint filed in Manhattan federal court, Mexico's government hired the plaintiff SAT Aero Holdings last year to provide an array of services to Mexicana, including obtaining aircraft and related insurance, and recruiting and training pilots and crew. SAT said Mexicana reneged on its obligations almost from the start, including by not paying $5.5 million of aircraft lease deposits, refusing to sign documents, poaching its pilots and crews, and failing to obtain licenses needed to import planes to Mexico and operate them.