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Mexicana To Lease 25 New Boeing 717s

US aircraft maker Boeing and one of Mexico's largest commercial airlines, Mexicana de Aviacion, have reached a leasing agreement for 25 new 717 twin engine jets, Boeing said on Monday.

The planes, made to carry 104 passengers, will be used by Mexicana's low fare airline Click starting this month. The agreement comes as passenger traffic for Mexican airlines has been slumping because of a sluggish economy.

"At a time when economic conditions pose challenges to airline operators and travelers, the 717 offers a wealth of value -- greater fuel efficiency, lower maintenance costs," said Boeing in a statement.

Several low-cost airlines started up in Mexico in recent years, but heavy competition, high fuel prices and slow economic growth have forced five carriers out of business.

Mexican airport operator OMA, which has 13 airports, said on Monday its February passenger traffic dropped nearly 18 percent from a year ago, citing weaker business due to fewer airlines flying.




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