The World - News from April 17, 1988

Mexico’s state airline, Aeromexico, filed for bankruptcy after a four-day strike by ground staff that cost the company an estimated $7 million. The Transport and Communications Ministry announced the company’s decision, blaming the firm’s collapse on a combination of the country’s economic crisis, administrative problems and union demands. The airline put 13 of its 45 jet aircraft on sale earlier this month and cut both domestic and international flights. When unions responded last Tuesday with the strike, arguing that the cuts would cost up to 3,500 jobs, Aeromexico was forced to cancel all 223 of its daily flights. It was unclear whether the airline plans to resume operations.