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Aeromexico has become the third Latin American carrier to file for chapter 11 bankruptcy protection in the United States.
The flag-carrier said it would use the respite to financially restructure, while continuing to serve passengers.
“Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” said Andrés Conesa, chief executive of Aeromexico.
“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.
“We expect to utilise the Chapter 11 process to strengthen our financial position, obtain new financing and increase our liquidity, and create a sustainable platform to succeed in an uncertain global economy.”
Regional rivals LATAM and Avianca have sought bankruptcy protection in recent weeks, as the coronavirus pandemic devastates the travel industry around the world.
Aeromexico said it would continue operations as the process begins.
The airline this month expects to double the number of its domestic flights and quadruple the number of international flights as compared to June.
Chapter 11 is designed to allow companies to maintain regular operations and all current tickets, reservations and electronic vouchers as it reorganises.
The company added it does not expect to be any changes to employees’ day-to-day job responsibilities, and employees will continue to be paid and receive benefits in the ordinary course of business.
Over the last few months, the airline has grounded part of its fleet, and it announced in March that it would start operating cargo-only flights for the first time.
Source: breakingtravelnews.com
