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Mexican Flag Carrier Aeromexico Files for Bankruptcy Citing Financial Challenges

Planes of Mexican airline Aeromexico are pictured at Benito Juarez international airport in Mexico. (Pic Source: Reuters)

Planes of Mexican airline Aeromexico are pictured at Benito Juarez international airport in Mexico. (Pic Source: Reuters)

Latin America's two other largest airlines, Santiago-based LATAM Airlines and Colombia's Avianca, also filed for bankruptcy in May.

  • IANS Mexico City
  • Last Updated: July 2, 2020, 11:48 AM IST
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Mexican flag carrier, Aeromexico announced that it has filed for bankruptcy in the US due to financial crisis caused by the COVID-19 pandemic.

"We have initiated a voluntary procedure to implement financial restructuring under the Chapter 11 process in the US," Xinhua news agency quoted the airline, one of the largest in Latin America, as saying in a statement on Tuesday.

"The legal process will not disrupt the airline's operations," it said.

Chapter 11 is a form of bankruptcy in which the carrier can maintain operation while reorganizing its business affairs, debts and assets.

Citing economic impact from the COVID-19 pandemic, the airline's Chief Executive Officer Andres Conesa said that "our industry faces unprecedented challenges due to significant declines in demand for air transportation globally".

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The Mexican carrier is the latest Latin American airline to seek reorganization amid the pandemic.

The region's two other largest airlines -- Santiago-based LATAM Airlines and Colombia's Avianca -- also filed for Chapter 11 reorganization in the US in May.

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