Aeromexico documents for US bankruptcy, citing ‘unprecedented’ worries

Mexico’s flagship airline declared Tuesday that it experienced applied to get started restructuring underneath Chapter 11, which will enable it to carry on flying.

“Our market faces unprecedented difficulties due to considerable declines in need for air transportation,” CEO AndrĂ©s Conesa mentioned in a statement. “We are dedicated to having the essential measures so that we can function efficiently in this new landscape and be very well ready for a prosperous potential when the Covid-19 pandemic is at the rear of us.”

Like quite a few airlines, Aeromexico has been compelled to restrict its operations as need for air travel has dried up. Around the last few months, the airline has grounded part of its fleet, and it introduced in March that it would commence operating “cargo-only flights for the initial time.”
The enterprise is the most recent Latin American carrier to file for Chapter 11 in the United States. In May possibly, Chile’s LATAM and Colombia’s Avianca (AVH) also begun bankruptcy proceedings, citing the reduction of business enterprise from the pandemic.

Aeromexico intends to use the method “to strengthen our fiscal posture, get new funding and increase our liquidity,” Conesa said.

Day-to-working day functions will continue on as the firm starts a economic overhaul. Travellers ought to however be in a position to fly applying their existing tickets, and personnel will continue on to get paid as regular, in accordance to management.

The corporation is also hinting at a gradual restoration. As air travel starts to rebound in some international locations, Aeromexico will “grow flight services” imminently, with strategies to double its domestic flights and quadruple worldwide capacity in July compared to amounts from previous month, it claimed.

But the airline however faces a challenging highway forward. The Intercontinental Air Transportation Authority has believed that it could take more than a few a long time for intercontinental vacation to return to pre-crisis levels.

The provider now desires to “generate a sustainable platform to triumph in an unsure world-wide financial state,” Conesa additional.

Dale A. Freeman

About the author: Dale A. Freeman

Typical organizer. Pop culture fanatic. Wannabe entrepreneur. Creator. Beer nerd.

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