Aeromexico files for US bankruptcy, citing ‘unprecedented’ challenges

Mexico’s flagship airline introduced Tuesday that it had utilized to start out restructuring below Chapter 11, which can permit it to proceed flying.

“Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” CEO Andrés Conesa mentioned in a press release. “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.”

Like many airways, Aeromexico has been pressured to restrict its operations as demand for air journey has dried up. Over the previous couple of months, the airline has grounded a part of its fleet, and it introduced in March that it could start operating “cargo-only flights for the first time.”
The firm is the most recent Latin American service to file for Chapter 11 within the United States. In May, Chile’s LATAM and Colombia’s Avianca (AVH) also started bankruptcy proceedings, citing the lack of enterprise from the pandemic.

Aeromexico intends to make use of the method “to strengthen our financial position, obtain new financing and increase our liquidity,” Conesa mentioned.

Day-to-day operations will proceed as the corporate begins a monetary overhaul. Passengers ought to nonetheless be capable of fly utilizing their current tickets, and workers will proceed to receives a commission as traditional, in accordance with administration.

Middle seats and packed planes are coming back as airlines prepare to ease restrictions

The firm can also be hinting at a gradual restoration. As air journey begins to rebound in some international locations, Aeromexico will “expand flight service” imminently, with plans to double its home flights and quadruple worldwide capability in July in comparison with ranges from final month, it mentioned.

But the airline nonetheless faces a troublesome highway forward. The International Air Transport Authority has estimated that it might take greater than three years for worldwide journey to return to pre-crisis ranges.

The service now must “create a sustainable platform to succeed in an uncertain global economy,” Conesa added.

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