Amid the COVID-19 crisis, Aeroméxico obtains liquidity: Investors contribute one billion dollars – Important step towards the restructure of the airline

Aeroméxico obtained the endorsement of the US Court for the Southern District of New York which grant the airline with DIP Financing
aeromexico-covid

The achievement of Andrés Conesa at Aeroméxico with its restructuring process in the United States has a lot of merit.

It is almost heroic if we compare it with what happened in the past in Mexico, when the government had to come to the rescue so as not to run out of airlines.

The economic impact of COVID-19 to all airlines

In the pandemic, examples of government support for airlines are many. In mid-March, the President of Turkey, Recep Tayyip Erdogan, unveiled fiscal stimuli that included resources to financially support Turkish Airlines. In Germany, the government bailed out Lufthansa with a nine billion euro package; while in France, the government provided more than seven billion to Air France. In Portugal, TAP received 1.2 billion euros in order not to go bankrupt. In Thailand, the government decided to support Tahi Airways minutes before it declared bankruptcy with a $ 1.8 billion package.

In Mexico it was said that there would be no bailouts. Therefore, Aeromexico had to scratch with its own nails. Yesterday the company announced that a United States court authorized it to obtain guaranteed financing from the firm Apollo Global Management for an amount of up to one billion dollars. This single authorization is the most significant step in the restructuring of the company and, more importantly, allows it to continue operating, hiring services from its suppliers and offering flights to its customers.

Absentee Mexican Government

All, without the government of Andrés Manuel López Obrador getting involved. The new Secretary of Communications and Transportation, Jorge Arganis Díaz Leal, is practically absent from the public discussion on the health and future of Mexico’s primary airlines.

It is something unprecedented, a phenomenon that can be explained by its bias towards prioritizing the President’s infrastructure objectives. Otherwise the omissions on the subject are not understood.

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