قالب وردپرس درنا توس
Home / Business / Aeromexico filed for US bankruptcy on the grounds of “unprecedented” challenges

Aeromexico filed for US bankruptcy on the grounds of “unprecedented” challenges



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.”

Like many airlines, Aeromexico was forced to restrict operations due to exhaustion of air travel demand. In the past few months, the airline has grounded some of its fleet and announced in March that it will “operate only cargo-only flights for the first time.”
;
The company is the latest Latin American airline to apply for Chapter 11 in the United States. In May, Chile’s Latin America and Colombia’s Avianca (AVH) It also began bankruptcy proceedings on the grounds of business losses caused by the pandemic.

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.

As airlines prepare to relax restrictions, intermediate seats and packed aircraft are back

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.

However, airlines still face a difficult road. The International Air Transport Administration estimates that international travel may take more than three years to return to pre-crisis levels.

Operators now need to “create a sustainable platform to succeed in an uncertain global economy,” Conesa added.


Source link