P.M. BRIEFING : Mexico to Sell State-Owned Airline

The state-owned Mexicana Airline will be sold to the private sector as part of President Carlos Salinas de Gortari’s program to inject new vigor into the nation’s economy, the government said.

The Treasury Department announced late Monday night that the International Bank will coordinate the sale of the airline to the Mexican or foreign investors who make the most attractive offer.

The other government-owned airline, Aeromexico, was sold to a consortium of Mexican investors in November. If purchased by foreigners, Mexicana would be the first major sale to non-Mexican investors under newly relaxed investment regulations.

Both airlines have domestic and international flights.

The sale is part of Salinas’ plan for cutting inflation and reviving the economy. He has said he supports the sale of many state-owned companies to the private sector in a bid to increase competition.