A few days ago, a column in a local newspaper indicated that Aeroméxico had requested bankruptcy protection in the United States, in the face of the crisis in the airline industry that would have left the Covid-19 health emergency.
Within hours of this information being released, the brand denied seeking its bankruptcy in the United States.
« The company reports that it has not initiated, nor has it made the decision to initiate, a restructuring procedure under Chapter 11, » he said in a statement sent to the Mexican Stock Exchange.
The truth is that the brand is taking measures to get out of this crisis that, at least in the commercial aviation sector, has already gained stability for several brands.
Thus, on Monday afternoon, Aeroméxico indicated that it reached an agreement with the Canadian Aimia to obtain a financial agreement of 100 million dollars.
With this move, an agreement was reached to extend the term of the agreement for 20 years, until 2050, between Aeroméxico and PLM, a joint company operating the Club Premier loyalty program.
In this way, according to what was said by Aeroméxico in a statement, in recent days a loan of 50 million dollars of PML was closed to the airline « under the existing intercompany credit line » and this Monday « an additional advance was made « Of the same amount » through advance purchase of award tickets « .
In addition, both parties decided to provide Aeroméxico with a purchase option of 48.9 percent of Aimia’s stake in PLM at a minimum price of $ 400 million over 7 years.
Between bailouts and bankruptcy
The Mexican airline’s announcement comes at a time when the sector, in general terms, has been characterized by closings, bailouts and bankruptcy declarations.
Last week KML, a subsidiary of Air France-KLM, since the end of 2003, reported that it will be rescued by the Dutch government with a sum of billions of dollars.
This rescue comes after Lufthansa, considered the largest airline in Germany, announced that it now has the government of that country as its main shareholder, which will naturally and irreparably modify the dynamics of said market in that nation.
The numbers don’t lie. The drop and in some cases zero influx of people at certain airports will be an element for most airline brands to lose 20 percent of their value after the pandemic.
This is revealed in the latest report delivered by Brand Finance, which explains that the aviation sector will be especially hit by the coronavirus.
“The International Air Transport Association (IATA) has said that most carriers will fail within two months as a result of border closures by governments to contain the coronavirus outbreak. A large number of major airlines have landed most of their fleets and have announced plans to lay off thousands of employees, as they now face a crisis like never seen in the airline industry, « the document details.
Along these same lines, a recent report by Cicotur Anahuac indicates that a drop in income of 172.9 billion pesos is expected within this industry. The document presents two possible scenarios for the tourism industry:
« In a scenario in which 75 percent of domestic trips and 80 percent of those destined for Mexico are canceled, the reduction in inbound and inbound tourism consumption would be 239.2 billion pesos; in a more conservative scenario of the affectation – cancellation of 50 percent of domestic trips and 80 percent of those that go to Mexico – the affectation would be 172.9 billion pesos. In the event of the worst scenario – a reduction in tourist consumption of almost 240 billion pesos – it is worth noting that this figure is 25 percent more than what the Dos Bocas refinery would cost, 1.7 times the investment forecast for the Mayan train, 84 percent of the positive balance of the Tourism Balance in 2019, a little more than the entire budget of the Health Sector in 2020, almost half of oil exports in 2019, 47 times the budget of the Tourism Sector federal and is equivalent to 12.3 points of tourism GDP ”.
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