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The Associated Press March 2, 2011, 10:43AM ET

Mexico suspends sale of Mexicana airline

Mexican authorities have suspended the sale of Mexicana de Aviacion, saying the would-be ownership group lacks adequate funding to buy the troubled airline.

The government's labor and transportation departments say in a statement that while the private equity group had developed a business plan to revive Mexicana, it had not named a single investor who could support the acquisition.

The statement released late Tuesday says PC Capital "has not done its part to identify solvent investors," and authorities would welcome interest from other parties.

Mexicana served 65 domestic and international destinations before it suspended operations in August due to financial problems.

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