Aeromexico receives U.S. court approval to increase its fleet
Grupo Aeromexico previously reported an agreement to increase its fleet with 24 new Boeing 737-8 and B737-9 MAX models and four Boeing 787-9 Dreamliners, as part of a restructuring of the agreement it had with the manufacturer and some lessors.
Grupo Aeromexico, which operates the country's main airline, reported that the U.S. Bankruptcy Court in the Southern District of New York, in charge of its Chapter 11 financial restructuring process, authorized an increase in its fleet.
Aeromexico said a week ago that it had reached an agreement to increase its fleet with 24 new Boeing 737-8 and B737-9 MAX aircraft and four Boeing 787-9 Dreamliners, as part of a restructuring of the agreement it had with the manufacturer and some lessors.
The incorporation of the first equipment is planned for this year, of which nine will operate from the summer and the rest will arrive in the second half of 2021 and during 2022, Reuters reported.
"(...) this represents a fundamental stage in Aeromexico's transformation for the coming years, under highly competitive economic conditions compared to current market values," highlighted the airline when announcing the agreement with Boeing a week ago.
With these agreements, Aeromexico was able to include several improvements in long-term maintenance contracts, as well as reduce leasing costs for another 18 aircraft that are part of the current fleet. Aeromexico estimates that this comprehensive agreement will generate total savings of approximately US$2 billion.
The Mexican flag carrier's current fleet consists of 107 aircraft, 47 Embraer 190s, 42 Boeing 737s and 18 Boeing 787 Dreamliners.
Aeromexico loses in one quarter the profits of an entire decade
In three months Aeromexico lost what it earned in 10 years, but it is better off than it was 10 or 15 years ago, because everything that was earned was reinvested in the company. Apollo, the investor that will invest one billion dollars to restructure the company, made the disbursement because it is confident in the airline's viability.
Last Wednesday, the airline reached wage reduction agreements with pilots and flight attendants, which will allow it to access the more than 600 million dollars pending to be injected by the investor into the 'Caballero Aguila' cash flow. Seven collective bargaining agreements were negotiated with air and ground employees to reduce labor costs for four years and ensure the airline's operation for the next two years.
No airline has ever received a billion dollars, which shows the confidence in Aeromexico. With the labor agreements, Aeromexico has access to the credit (pending) of more than $600 million, which allows it to continue flying for the next two years. After this period, it is expected that the finances, as well as the airline industry, will recover to improve the airline's situation.