Chihuahua State legislators are questioning the wisdom of a $7 million peso investment in the Texas commuter airline, Lonestar, and have expressed doubts that the invested funds can be recovered. According to a report in the Diario de Juarez, the airline is already bankrupt. Chihuahua legislator Jose Silveyra, a member of the PRI party, has asked the chief of the state economic development department whether the investment, representing approximately $1.7 million dollars, was an authorized transaction. Other legislators have criticised the investment on the grounds that the government investment has benefited only foreign business interests, stating that the funds should have been spent on small and medium sized Chihuahuan businesses.
Economic development officials have countered the criticisms by stating that the investment was part of an overall plan to spur economic development and investment by foreign companies in the state capitol, Chihuahua City, and that a direct international flight from the United States was required to attract U.S. business interests. They point to Motorola and John Deere as examples of large U.S. companies whose installations in the state were conditioned on the availability of international flights. In addition to the state's investment, the City of Chihuahua invested $25,000. Jaime Garcia, a legislator from the PRD party has asked for an investigation into the transaction.
Source: Diario de Juarez