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.