UPDATE 1-Mexico president says US aviation firm breached Mexicana Airlines contract

SAT Aero Holdings, a U.S. aviation firm hired by Mexico to relaunch state-run airline Mexicana, was accused by President Andres Manuel Lopez Obrador on Friday of breaching its contract, after SAT made similar charges in a lawsuit against the carrier. lawsuit filed last month, alleging that Mexicana reneged on its obligations almost from the start. According to SAT, Mexicana officials failed to pay $5.5 million of aircraft lease deposits, refused to sign documents, went around SAT to directly hire pilots and crew trained by the aviation firm, and failed to obtain licenses needed to import planes to Mexico and operate them.