Aeroméxico has made a decision in the United States and demonstrates the direction the company will take in this market after the COVID-19 pandemic.
The COVID-19 pandemic has become one of the most devastating phenomena in the world.
The air market has been identified by the innovation in its experience it offers.
Grupo Aeroméxico has announced on Tuesday that its company and one of its subsidiaries have begun a voluntary process, to restructure financially in the United States, appealing to Chapter 11 of the legislation of that country.
Chapter 11 of the United States Bankruptcy Law gives companies that operate in this nation the opportunity to reorganize with the support of the authorities, in order to face the financial problems they are experiencing.
« The Company will use the advantages of Chapter 11 to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary operational adjustments to face the impact of COVID-19, » the airline explained in a statement that sent to the Mexican Stock Exchange.
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Andrés Conesa, CEO of Aeroméxico, assured that the airline industry is going through a series of challenges never seen before, as a consequence of the drastic reduction in travel demand, as a consequence of the COVID-19 pandemic, which caused serious havoc in various industries, mainly air.
The airline’s commitment, he said, is to adopt the appropriate measures to be able to maintain operations with continuity and efficiency, to face the COVID-19 pandemic.
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One of Aeroméxico’s promises is that it promises to almost double its presence in that market during July, this compared to the previous month, with what it said, it will increase its operation internationally up to four times.
The statement published by Aeroméxico occurs after weeks ago it assured that it had not appealed to Chapter 11, but now it has confirmed it, since it has made the decision to apply to this unpopular procedure, at a time when the impact of the COVID pandemic -19 has been seen in Mexican airlines, especially when projections from the International Association of Air Transport warn that airlines will lose about 8 billion dollars.
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Transcended by various media warned on June 19 that Aeroméxico was about to make a decision that would impact its business internationally, however, the brand replied to information published by the press.
That Friday it was announced that Aeroméxico was about to declare bankruptcy within the United States, one of the most challenging markets internationally, however, the news has been clarified by the airline.
Transcended from both the media and journalists specialized in economics such as El Financiero, warned that Aeroméxico had made the decision to initiate a procedure by which it could adhere to Chapter 11 of the Restructuring Law in the United States, which would give it the opportunity adjusting to the havoc caused by the COVID-19 pandemic, which as we saw at the beginning of the note, will have an impact of $ 314 billion in revenue.
The measure was denied by the Mexican airline and assured that it is going through turbulence that has led it to seek additional financing, due to the lack of demand for its flights, which has been registered since last March.
A quote from the statement it has sent to the Mexican Stock Exchange warns that the airline is looking for additional sources of financing that will allow it to maintain operating flows, in addition to seeking alternatives to restructure its financial commitments.
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