Aeromexico Files for Bankruptcy Protection in the U.S.

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Flagship airline and ongoing situation

Airlines around the world are working hard to adapt to the new reality. However, for some of them, it is hard to adjust to this everchanging environment. This is not surprising, as governments implemented travel restrictions. As a result, companies lost a lot of money. Hopefully, authorities will have already removed some of the restrictions.

Nevertheless, coronavirus cases continue to rise and recently surpassed 11 million. Moreover, millions of people in different parts of the world have lost their jobs over the past several months.

Also, the state of the global economy is far from being ideal. Unfortunately, Aeromexico became the latest carrier to succumb to the pressures of the coronavirus pandemic.

Based on the information provided by Mexico’s flagship airline, it had applied to start restructuring under Chapter 11. The carrier made the decision to file for bankruptcy protection in the U.S. Hopefully, Aeromexico will continue flying after making this decision.

According to Andres Conesa, who serves as the CEO of Aeromexico, the aviation industry faces unprecedented challenges due to the low demand for air transportation.

Nevertheless, the carrier is willing to take necessary measures to adapt to the new reality. Moreover, Aeromexico will be ready to operate in the post-coronavirus period.

 

Aeromexico and the coronavirus pandemic

Aeromexico and bankruptcy protection

Mexico’s flagship airline is not the only carrier that is struggling to deal with the economic impact of the coronavirus pandemic. Airlines around the globe decided to limit their operations as demand for air travel dried up. Moreover, over the last few months, Aeromexico grounded part of its fleet, which consists of more than 60 airplanes.

It is worth noting that, in March, the carrier made an important announcement. According to this announcement, it switched to cargo-only flights for the first time.

As stated above, the coronavirus pandemic created a lot of problems for the aviation industry. Unfortunately, the company is the latest Latin American carrier to file for Chapter 11 in the U.S. In May, Chile’s LATAM, as well as Colombia’s Avianca, also started bankruptcy proceedings due to the coronavirus pandemic.

Most importantly, day-to-day operations will continue and people do not have to worry about this decision. Employees of Aeromexico will get paid as usual and passengers will be able to fly using their existing tickets.

Furthermore, as air travel begins to rebound in some countries, Aeromexico plans to double its domestic flights as well as quadruple international capacity in July compared to June.

Based on the information provided by the International Air Transport Authority, it could take several years for international air travel to return to pre-crisis levels.

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