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North American flag carrier declares bankruptcy


Another Latin American airline fights for its life

In another blow for aviation, especially in the Americas, Aeromexico has announced it and some affiliates have filed for voluntary bankruptcy in the US. 

 

By filing for Chapter 11, Aeromexico hopes to implement a sustainable financial restructuring while dealing with the impact of the coronavirus pandemic.

 

In the meantime, the Mexico-based airline group will continue to fly, with tickets, reservations, electronic vouchers and loyalty points remaining valid.

 

 

“Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” Aeromexico CEO Andrés Conesa said. 

 

“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 utilize 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.”

 

In a statement, Aeromexico said it expected to double domestic flights and quadruple the number of international services compared to June whilst “continuing to safely expand flight service in the coming months, in line with local regulations and customer demand”. 

 

The company has not announced any lay-offs and does not forsee any changes to workers’ job roles. It has also underlined its commitment to protecting the health and safety of its employees and customers in all phases of its operations.

 

“Our main priority has always been to maintain a safe environment for our clients and collaborators, and we know that today it is more important than ever,” said Mr. Conesa. 

 

“We encourage our customers to review the detailed information we have on our website https://vuela.aeromexico.com/reorganization about all that we are doing to make flying with us safe and enjoyable.”

 

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Written by: Mark Harada
Published: 1 July 2020


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