After a meeting between the Mexican government, stock holders, and the former Mexicana employee union, an agreement was finally reached.

The transportation and communication ministry (SCT) has agreed to overlook the technical procedures needed for Mexicana to obtain its licence to fly, as well as determine the financial capacities of potential investors.

Once all the agreement with the banks is set, Mexicana will be able to reassess its financial ability. A week after that Med Atlántica investors group will be able to purchase the assets of the company, allowing the white and green planes to fly again.

There is a meeting scheduled on Friday march 23rd between the mediator, Mr. Gerardo Badín Cherit, Mexicana union representatives, and members of the SCT which could potentially solve the issue with the aerial operator certificate aka licence to fly. This means that Mexicana could restart operations as early as May 2012.

Access Article                                          Source: T21

In 2011, Mexico ranked 1st in the list of world's most affordable manufacture, outranking Vietnam, India and China. In 2005, China had the world's lowest manufacture cost, followed by India, Vietnam, Russia and Mexico.

The lowering of Mexico's manufacture costs is a tendency that started in 2007 and got heightened in 2010, when the country's manufacture cost was 28% lower than the US's. In 2011, manufacture was 21% cheaper in Mexico than in the US.

"Mexico delivers products at a lower cost than other emerging countries such as China, India and Russia. Mexico`s real estate costs are lower than those of China, which has also experienced an increase in transportation cost and rising pressure coming from the exchange rate of the Yuan", according to 2011's manufacture cost index by Alix partners.

According to Alix partners, China has lost ground in manufacture costs due to inflation and the strength of the exchange rate of the Yuan. The firm predicts that Chinese manufacture costs will match those of the US by 2015.

Ricardo Haneine, associate at AT Kearney, believes that Mexico is very competitive in the world`s market for manufacture. Nonetheless, he indicates that the country should focus on increasing worker productivity and giving more aggregated value to its manufacture: "The country must not lose sight of productivity and aggregated value per unit, whether it is per hour of per worker. This should give Mexico great positioning at the world's scale and a comparative advantage against other countries, that is if the value of the cost-adjusted productivity is higher that China's, India's and Vietnam's".