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.
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.
Like many airlines throughout the world, Aeroméxico has been affected by a decline in travel due to the COVID-19 pandemic .
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CEO Andrés Conesa
said: “COVID-19 has had an unprecedented impact on the world economy and the travel industry . Today, more than ever, it is essential to be able to adapt quickly to meet the needs of travelers in an uncertain environment. We are committed to taking the necessary steps to secure our future by utilizing the Chapter 11 process to become stronger and more resilient, while always putting the health and safety of our customers and employees first.”
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.”
Amid the pandemic, the Mexican government has refused to bail out large private companies.
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.
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