As part of its financial restructuring process under the U.S. Chapter 11, a U.S. court granted permission to Grupo Aeroméxico to terminate the lease agreements that involve returning 19 aircraft to the corresponding lessors.
Such aircraft are not part of the airline’s strategic fleet under the current market conditions.
They are five Boeing 737-800, five Boeing 737-700, and nine Embraer E-170-LR, as well as four GE CF34- 8E5 engines.
This action is part of the measures the company is implementing on a timely basis to make its fleet more efficient and hence, consolidate a feasible and profitable commercial platform in front of the new economic reality after the impact of the COVID-19 pandemic.
A court hearing took place on July 23 to dispose of Aeroméxico’s motion, which resulted in the approval of the termination of the contracts as requested by the company.
Aeroméxico will follow the guidelines authorized by the court and the logistical aspects that are agreed on with the lessors for the orderly return of the equipment.
The measure will allow reducing leasing and maintenance costs and is part of the airline’s efforts to streamline its Aeroméxico and Aeroméxico Connect fleets.
This measure does not affect the airline’s destinations and strategic frequencies plans.
Last June 30, Aeroméxico began a volunteer financial restructuring process under Chapter 11 of the U.S. Bankruptcy Act, which is being carried out in an orderly way while the firm keeps on operating and offering its services by implementing health and hygiene standards and hiring the suppliers required for its operation,
Aeroméxico files for bankruptcy
Like many airlines throughout the world, Aeroméxico has been affected by a decline in travel due to the COVID-19 pandemic.
Hence, on June 30, Mexican airline Aeroméxico announced it had filed for U.S. Chapter 11 reorganization, a form of bankruptcy in which the carrier can keep operating while its debts and obligations are sorted out.
In a statement, Aeroméxico wrote 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. ”
According to Aeroméxico, Chapter 11 is a legal process that allows companies to restructure financially and operationally in a court-supervised setting while continuing to operate.