Mexico's Interjet infuses cash in fresh attempt to quash debt

Mexican airline Interjet is falling deeper into debt at just the wrong time. The carrier received a cash injection for MXN900m and is expecting a further MXN1.2n from its board (about US$105m total), according to its Q3 results. Even after getting the first tranche of the injection, the company’s net-debt-to-Ebitdar ratio grew to 11.1 times, up from the 7.1 times the privately-held company reported in January. The rise is mainly due to a 60% increase in the cost of leasing aircraft, which the company attributes to its sale and leaseback transactions. In January, CE Jose Luis Garza said that a then-recent MXN3.2b cash injection would be the last one it would need. The deteriorating financial position comes at a particularly tough time for the company, which is looking to revamp part of its fleet. <br/>