BY Fraser Tennant
Following the successful conclusion of a 21-month financial restructuring process, Mexican carrier Aeromexico has emerged from its Chapter 11 bankruptcy.
The financial reorganisation process is being closed after the carrier capitalised and obtained over $3.7bn in unsecured loans, debtor-in-possession (DIP) financing and new capital contributions.
Aeromexico began the Chapter 11 process due to the impact of the coronavirus (COVID-19) pandemic worldwide, making it the third Latin American carrier to employ the protection of the US bankruptcy code, after Avianca and LATAM Airlines Group.
“This is an exciting time for Aeroméxico and we are ready to soar to new heights as we emerge from Chapter 11,” said Andres Conesa, chief executive of Aeroméxico. “We look forward to starting a new chapter in our company’s history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future.”
Throughout the restructuring process, Aeroméxico has worked to expand its operations sustainably, opening six new routes, restarting service on more than 30, and increasing its total seat offering by more than 320 percent compared to June 2020 figures.
The company currently flies 84 national and international routes, connecting bustling cities in Mexico, such as Guadalajara and Monterrey, to the European market through Madrid. In 2022, Aeroméxico plans to continue building on this momentum, including the restart of services to London.
“Thanks to the dedication of the entire talented Aeroméxico family, as well as the support, trust and empathy of our customers, unions, authorities, suppliers and business partners, we have successfully completed this process,” added Mr Conesa.
In addition, Aeroméxico has formed a new board of directors, comprised of a majority of Mexican nationals and independent members in full compliance with Mexican foreign investment law and regulations.
Mr Conesa concluded: “As we move forward, we will not only continue to streamline our company to become even more sustainable, resilient and competitive, but we will also significantly expand our network and fleet – all while offering excellent service and maintaining our position as Mexico’s flagship airline.”