17.5 C
New York
Sunday, July 12, 2020
Home Top News Aeromexico is filing for bankruptcy in the US, citing “unprecedented” challenges

Aeromexico is filing for bankruptcy in the US, citing “unprecedented” challenges

The main Mexican airline announced on Tuesday that it has applied to begin restructuring under Chapter 11, which will allow it to continue its flight.

“Our industry is facing unprecedented challenges due to a significant drop in demand for air transport,” CEO Andrés Cones said in a statement. “We are committed to taking the necessary steps to operate effectively in this new landscape and be well prepared for a successful future when the Covid-19 pandemic is behind us.”

Like many airlines, Aeromexico has been forced to limit its operations as demand for air travel has dried up. Over the past few months, the airline has landed part of its fleet, and in March announced it would get started “first cargo flights.”
The company is the latest Latin American carrier to apply for Chapter 11 in the United States. In May Chilean LATAM and Colombian Avianca (AVH) he also filed for bankruptcy, citing job loss from the pandemic.

Aeromexico intends to use this process “to strengthen our financial position, obtain new financing and increase liquidity,” Conesa said.

Daily operations will resume once the company begins a financial overhaul. Passengers should still be able to fly using existing tickets, and employees will continue to receive salaries as usual, management said.

The company also intends a gradual recovery. As air travel in some countries begins to recover, Aeromexico will immediately “expand its flight service,” planning to double its domestic flights and double its international capacity in July from last month’s levels.

But the airline is still facing a difficult path. The International Air Transport Authority has estimated that the passage of international travel to pre-crisis levels could take more than three years.

The carrier must now “create a sustainable platform for success in an uncertain global economy,” Conesa added.

Most Popular

Client dies soon after catching coronavirus at ‘COVID party’ in Texas

A individual in their 30s who contracted the novel coronavirus at a "COVID occasion" in San...

Light-weight “Hypernucleus” Predicted to Be Stable Irrespective of Owning Two Unusual Quarks

An artist’s impact of a sure nucleus containing 3 usual nucleons, which have up and down quarks, and a Xi hyperon (gold sphere at...

Ray Hushpuppi is accused of cyber crimes in two continents

On social media, where by he posted a video clip of himself tossing wads of funds like confetti, he told his followers he was...

Is World 9 In fact A Primordial Black Gap?

Artist's conception of accretion flares ensuing from the face of an Oort-cloud comet and a ... hypothesized black...