Mexicana Airlines Presents Unions With Reorganization Plan

MexicanaClick and MexicanaLink continue to operate as normal.

MEXICO CITY, August 3, 2010 - Compania Mexicana de Aviacion (CMA/Mexicana Airlines), a subsidiary of
Nuevo Grupo Aeronautico (NGA), today informed the media and general public
that the company's financial and labor situation is no longer sustainable.

NGA's CEO Manuel Borja called a press conference and gave several
interviews informing the public of the situation CMA is facing and reassured
passengers that it has not and will in no way affect the operations, flights
or itineraries of MexicanaClick and MexicanaLink. Although they are also
subsidiaries of NGA, these airlines operate under completely different
business models; CMA is focused on the international market, while
MexicanaClick and MexicanaLink cover the domestic market, said Borja.

The situation has forced CMA to make some minor adjustments to its
international flight schedules. For further information, passengers in the
Mexico City area are advised to call 5998-5998. Passengers elsewhere in
Mexico can call toll free on 01-800-801-2010 or on 1-877-801-2010 from the
United States and Canada. Regular updates will also be posted on the
company's website at www.mexicana.com

Despite of investments of over US$300 million in credit lines and
resources put up by NGA and its subsidiaries, MexicanaClick and MexicanaLink,
CMA explained today that its current financial situation is no longer
tenable. Concerted efforts have been made over the last four and a half years
to restructure costs, efforts that have translated into savings of some
US$800 million as a direct result of investment in IT systems, new routes and
more efficient aircraft, but have not been sufficient to offset its crew
costs.

Although the airline's operating costs excluding crew labor costs are 30%
lower than the average of legacy airlines in the United States, these non
competitive labor costs are the main reason why the company has continued to
suffer losses, to the extent that it is now financially non-viable. According
to company sources, CMA's pilots earn 49% more than the average wage paid by
legacy airlines in the United States and 185% more than the average pilots
flying Airbus A320s for other Mexican low cost airlines like Volaris or
Interjet. Likewise, Mexicana Airlines flight attendants earn 32% more than
the U.S. average and 165% more than their Mexican counterparts employed by
the same airlines.

Numbers confirm, that if the CMA's collective contracts had been more
competitive, instead of registering losses of US$350 million from 2007 to
date, the company would have posted profits of US$350 million, illustrating
that CMA does indeed have the potential to be a profitable, financially
viable carrier.

However, in light of the current situation, CMA has presented its pilots'
and flight attendants' unions with two alternatives.

The first is the option to enter into a new collective contract to secure
the CMA's long-term financial viability. This would imply accepting cuts of
41% and 39% in wages and fringe benefits for pilots and flight attendants,
respectively. This alternative also calls for additional cost-cutting
measures, including downsizing 40% of the airline's pilots and flight
attendants. On the upside, it incorporates a profit-sharing plan whereby the
unions would get a percentage of any operating profits that exceed 5% of the
company's total revenues.

As a second alternative, stockholders have offered to sell CMA to its
unions for the token sum of $1 peso, proving them convinced of the vital role
these labor organizations will play in the future of the company. As the only
entities capable of turning the situation around, CMA's management have
stated that it would be willing to transfer control of the airline to its
unions. The transaction would require further and more detailed negotiations
with the unions, but in broad terms would require NGA to assume liabilities
of US$120 million in bank credit lines, while the unions would have the
option of retaining a BANCOMEXT loan for US$80 million or transferring this
credit line and its respective sureties to NGA. The unions would also be
given a six-month permit for the use of the Mexicana Airlines brand name,
among other measures designed to allow for a smooth transition.

In response to statements by representatives of the pilots union (ASPA)
to the effect that both proposals outlined by CMA would be rejected, the
company said that it is time to acknowledge reality, that the paradigm of
commercial aviation has changed worldwide and that only airlines that operate
at competitive costs can hope to survive and continue flying. CMA will
continue to negotiate with its unions.

For further information:

Passengers are advised to contact our call centers or visit
www.mexicana.com

Follow us on Twitter: @mexicana_com

Armando Vera, +52(55)5545-225035, +52(155)2085-0310, for Mexicana Airlines