Mexico’s government is planning to acquire Mexicana MRO Services and deepen its already heavy involvement in the Mexican commercial aviation sector, according to sources of local business publication El Financiero.

Having put its defense ministry in charge of the country’s civil airports, in 2023 the government extended their remit to running Mexicana, which ceased operations in 2010, but was reanimated in 2023 when the state paid roughly $50 million for its brand.

However, that deal did not included Mexicana MRO, which continued as a standalone entity after Mexicana was officially declared bankrupt in 2014.

At the time, Mexicana MRO was valued at up to $100 million, while continued operations were to be overseen by a trust for the benefit of Mexicana workers, which expires in April this year.

According to El Financiero, the government is now reappraising the assets of the MRO facility, the sale of which will be use pay some of the lost wages of more than 8,000 current and former Mexicana staff.

The eight-line MRO facility in Mexico City offers heavy maintenance, line maintenance, component repair, and painting services. It also provides Boeing 767 freighter conversions under an agreement with Israel Aerospace Industries.

Prior to the pandemic, most if its customers were from Latin America, but in the last few years it has attracted more business from North American as well.

The total Mexican MRO market, meanwhile, will be worth roughly $110 million this year, rising to almost $140 million by 2033, according to Aviation Week Network’s Commercial Fleet & MRO Forecast 2024.

Of this year’s demand, about 20% will be for component services, 5% will be for airframe maintenance and 18% will be for line maintenance. Almost half will be for engine maintenance.