Aeromexico concludes restructuring and promises a $5 billion investment

The company filed for bankruptcy in July last year, after Latam and Avianca. Airlines are among the businesses hardest hit by the COVID-19 pandemic.

Passengers queue as they wait for flights after pilots of Grupo Aeromexico have tested positive for the coronavirus disease (COVID-19) amid the spread of the Omicron variant, at Benito Juarez International Airport in Mexico City, Mexico January 10, 2022. REUTERS/Luis Cortes

Mexican airline Aeromexico said on Thursday it had successfully concluded its financial restructuring and completed its Chapter 11 bankruptcy process, wrapping up an almost two-year ordeal.

The company also said it will spend $5 billion over the next five years on its fleet of airplanes and on “other relevant actions to consolidate customer and employee experience improvements.”

Aeromexico detailed plans to receive 22 more planes in 2022, bringing its total fleet of aircraft to 147 by the end of the year. The company signed a deal to buy 28 planes from Boeing last year, which it argued would result in a $2 billion savings.

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In a news release, the carrier said it will also restart some international routes and open new ones, including restarting services to London.

“Today is an incredibly exciting day for Aeromexico and we are ready to soar to new heights as we emerge from Chapter 11,” said the company’s chief executive, Andres Conesa.

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“We look forward to starting a new chapter in our company’s history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future,” said Conesa.

The company filed for bankruptcy in July last year, after Latam and Avianca. In November, the airline requested permission to dismiss 1,830 employees in order to save $44 million.

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