Mexican flag carrier files for bankruptcy
Wednesday - July 1, 2020 11:21 am , Category : BUSINESS
Mexico City, July 1 (IANS) Mexican flag carrier, Aeromexico announced that it has filed for bankruptcy in the UnS 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.The 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".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.