Aeromexico is another Latin American airline to file for bankruptcy
Mexican airline followed the example of Avianca and LATAM and filed under Chapter 11 in the United States to start restructuring plan
Aeromexico announced on Tuesday that it was filed under Chapter 11 in the US in order to start its restructuring plan. It is the third Latin American airline to enter into bankruptcy due to the effects of the coronavirus pandemic, after Avianca (Colombia) and LATAM (Chile).
In a statement, the Mexican airline said that it filed the lawsuit voluntarily and that it is preparing a strong resumption of its operations in the coming weeks.
The option to file for bankruptcy in the US involves the country’s clearest rules regarding the maintenance of aircraft leased by airlines. It is possible to keep them in flight even when negotiating late lease payments with your lessors.
This was one of the reasons that led LATAM to choose American instead of Chilean courts. Last year, the Brazilian division of Avianca filed for bankruptcy in the Brazilian courts and ended up being banned from continuing to fly with the leased planes, preventing it from keeping its air network operating.
The request for bankruptcy among Latin American airlines reflects the fact that the governments of these countries have denied financial aid to the air transport sector, unlike what happens in Europe, for example, which has bailed out their airlines.
Likewise with LATAM, Aeromexico also has Delta Air Lines as one of its main shareholders, but in this case they have a 49% stake against only 20% in the Chilean group.
“Our industry faces unprecedented challenges due to significant declines in demand for air transportation,” said Andrés Conesa, CEO 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, “he concluded.
Aeromexico has a fleet of 69 jets, all from Boeing, including six 737 MAX, which are grounded for safety concerns, and 19 787 Dreamliner widebodies.[DISPLAY_ULTIMATE_SOCIAL_ICONS]