Mexico’s flagship airline Aeromexico this week filed for Chapter 11 bankruptcy in the United States. In a statement, the company said it would “continue to operate whilein the process” of bankruptcy and “offer the same quality service to our clients.”
Aeromexico made the decision in a bid to strengthen its financial position, aviation industry analysts say. The Chapter 11 procedure allows for debtor-in-possession (DIP) financing, a special kind of financing meant for companies that are in bankruptcy. A day prior to the declaration, Aeromexico announced that it had obtained US$100 million in additional funding from Canadian investment company Aimia Inc. to help it navigate the travel downturn.
“Our industry faces challenges we’ve never seen before due to an incredible reduction in passenger demand globally,” Aeromexico’s CEO, Andres Conesa said in a statement.
The airline stressed that passengers will not be affected and that tickets issued, reservations, electronic vouchers and Club Premier points will remain valid and available for use.