Aeromexico Files for Chapter 11 Bankruptcy Protection

By Paul Riegler on 30 June 2020
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Grupo Aeroméxico, the parent of Aeromexico, the Mexican flag carrier, announced it had filed for voluntary restructuring under chapter 11 of the U.S. bankruptcy code late Tuesday, as it confronts a severe decline in traffic amidst the coronavirus pandemic.

The move came after the airline received a $50 million lifeline from loyalty company Aimia on Monday.

“We continue operating normally and with the highest quality service,” the airline said on its website.

It is the third Latin America airline to seek the protection of a bankruptcy court over the past eight weeks.

“Our industry faces unprecedented challenges derived from a significant reduction in passenger demand on a global level,” the carrier said in a filing with the Bolsa Mexicana de Valores, the Mexican stock exchange.

“With the chapter 11 restructuring process, we will strengthen our financial position and increase our liquidity, at the same time creating a sustainable platform to allow us to successfully weather the current global economic uncertainty,” it added.

(Photo: Accura Media Group)

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