The Mexican airline has announced Tuesday that it has applied to begin the restructuring under Chapter 11, which will allow it to continue flying.
“Our industry faces unprecedented challenges due to a significant drop in air transport demand,” said CEO Andrés Conesa in a statement. “We are committed to taking the necessary steps so that we can operate effectively in this new landscape and be well prepared for a successful future when the Covid-19 pandemic is behind us.”
Aeromexico intends to use the process “to strengthen our financial position, obtain new financing and increase our liquidity”, said Conesa.
Daily operations will continue when the company starts a financial review. Passengers should still be able to fly using their existing tickets and employees will continue to be paid as usual, according to management.
The company is also suggesting a gradual recovery. As air travel begins to rebound in some countries, Aeromexico will “expand flight service” imminently, with plans to double its domestic flights and quadruple international capacity in July compared to last month’s levels, he said.
The carrier must now “create a sustainable platform to succeed in an uncertain global economy,” added Conesa.