Mexico’s flagship airline announced on Tuesday that it has applied for a reorganization under Chapter 11, which will allow it to continue flying.
CEO Andrés Conesa said in a statement: “Due to the significant decline in air transportation demand, our industry is facing unprecedented challenges.” “We are committed to taking the necessary measures to enable us to operate effectively in this new situation And prepare for the arrival of the Covid-19 pandemic and prepare for a successful future.”
Aeromexico intends to use this procedure to “strengthen our financial position, obtain new financing and increase our liquidity,” Conesa said.
As the company begins financial reforms, daily operations will continue. Management stated that passengers should still be able to use existing tickets for flights, and employees will continue to be paid as usual.
The company also hinted at a gradual recovery. The company said that as air travel in certain countries began to rebound, Aeromexico will immediately “expand flight services” and plans to double its domestic flights in July and quadruple its international capacity.
Operators now need to “create a sustainable platform to succeed in an uncertain global economy,” Conesa added.