Debt-ridden Mexicana, which filed for creditor protection in Mexico and the United States this week, suspended ticket sales on Wednesday as its operating troubles deepened.

Mexicana is one of the two leading Mexican airlines and flies routes connecting the United States, Canada and Europe with beach resorts such as Cancun and Puerto Vallarta.

Company spokesman Adolfo Crespo told Radio Formula that the airline will continue operating flights that have already been sold.

A spokesman for the pilots' union said that they were expected to meet Mexico's labour minister on Thursday in a bid to strike a deal with the company's management.

Mexicana, which has a debt of close to MXP10 billion pesos (USD$796 million), was battered by Mexico's deep recession and a flu outbreak last year that scared off tourists.

The 89-year-old airline's management want to cut staff and wages, which they say are bloated and above those of US carriers.

But workers refuse to have their benefits shrink further after giving up multiple benefits in 2006, which helped Mexicana save about USD$35 million per year.

Mexicana is a unit of Grupo Mexicana, as well as regional airlines Click and Link, which serve domestic routes and will continue selling tickets normally.

According to a report on the company's website, Mexicana has altered 28 flights to and from mostly US destinations and suspended three flights. Three company aircraft -- two in Canada and one in Chicago -- have been grounded since last week at the request of creditors. The company owns nine of the 64 aircraft in its fleet.

IMPACT ON AIRPORTS

Local airport operators OMA, GAP and Asur all depend on Mexicana and rival AeroMexico for a large portion of their revenue.

OMA said on Wednesday that Grupo Mexicana has operations at 12 of its 13 airports, which are located in top tourist destinations such as Acapulco and Zihuatanejo.

"During the first six months of 2010, Grupo Mexicana generated 16.6 percent of OMA's total passenger traffic, of which 7.6 percent was accounted for solely by Mexicana de Aviacion," the company said in a statement.

Rival GAP said on Tuesday that Grupo Mexicana operates at 10 of its 12 airports, including Puerto Vallarta and Los Cabos, and accounted for 18 percent of its domestic traffic and 19 percent of its international passengers between January and June.