Aeromexico filed for Chapter 11 reorganization, Mexico’s oldest legacy airline said Tuesday.
Chapter 11 is a form of bankruptcy in which the carrier can keep operating while its debts and obligations are sorted out.
The airline said “this legal process will not interrupt the airline’s operations” and that all tickets, reservations and bonus points would continue to be honored.
Aeromexico was not immune to the industry crisis, being squeezed by a decline in travel while coronavirus infections spread.
“The COVID-19 pandemic has had an unprecedented impact on the global economy and travel industry,” Aeromexico General Director Andrés Conesa admitted.
Aeromexico’s statement pointed out that “many leading airlines throughout the world have used Chapter 11 to strengthen their financial position, and they continue to be solid companies that serve passengers across the world now. That is what we intend to do.”
Mexico has refused to bail out large private companies, even those battered by the pandemic. President Andres Manuel Lopez Obrador said the government would not support “potentates.”
The airlines flies between Merida and Mexico City daily and connects passengers to Delta flights in Miami.
Mexico’s other legacy airline, Mexicana, went into bankruptcy in 2010 and never returned.
With information from The Associated Press