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Aeromexico has become the latest Latin American airline to enter into Chapter 11 bankruptcy restructuring.
Operations will continue, with the company planning to double its domestic capacity and quadruple its international capacity in July compared to June. Employees will continue to be paid and receive benefits.
“Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” Aeromexico CEO Andrees Conesa said in a prepared statement. “We are committed to taking the necessary measures so that we can operate effectively in this new landscape and be well prepared for a successful future when the Covid-19 pandemic is behind us.”
The airline said that during the restructuring, all tickets, reservations, vouchers and loyalty points will remain valid.
In filing Chapter 11, Aeromexico joins Latin American carriers Latam and Avianca. Delta owns 49% of Aeromexico and 20% of Latam.
Aeromexico said it is in talks to obtain debtor-in-possession financing, which is financing secured during a bankruptcy process that takes priority over existing debts. The airline said it is confident in securing that financing, which along with available cash would provide Aeromexico with sufficient liquidity to survive the Covid crisis.
Source: travelweekly.com
