Mexico City, July 23, 2020 (GLOBE NEWSWIRE) -- Mexico City, Mexico on July 23, 2020. Grupo Aeroméxico, S.A.B. de C.V. (BMV "AEROMEX") informs that, as part of the rights afforded within its voluntary financial restructuring process under Chapter 11 of the legislation of the United States of America, on July 3, the Company requested Court authorization to reject certain lease agreements for 19 aircraft to their respective lessors in an orderly manner (the “Motion”). These aircraft are not part of the Company's strategic fleet requirements under current market conditions. The aircraft involved are: 5 Boeing 737-800s, 5 Boeing 737-700s and 9 Embraer E-170-LR aircraft, as well as 4 GE CF34-8E5 engines (the "Equipment").
This motion is part of the Company´s measures to ensure a more efficient and homogeneous fleet, in order to ensure a viable and profitable commercial platform in the new post COVID-19 economic reality.
Today´s hearing approved the termination of said contracts in agreement with the Company's request. Aeromexico will follow the guidelines authorized by the Court and the logistical aspects agreed with the lessors for the orderly return of the Equipment. This will reduce costs associated with the leasing and maintenance of the Equipment and is part of the efforts to rationalize the fleet of its subsidiaries that operate under the Aeromexico and Aeromexico Connect brands.
This positive court decision, as part of the voluntary restructuring process, has no effect on the Company´s network plan or frequencies. In addition to strengthening the Company's operation towards a more profitable and sustainable future. The above, will contribute to the business plan which is being reviewed by management, supported by operational and financial advisers.
Grupo Aeroméxico announced on June 30th 2020 that it has started a voluntary process of financial restructuring under Chapter 11 of the legislation of the United States of America, which will be carried out in an orderly manner while it continues operating and offering services to its customers with the same quality that characterizes it, contracting from its suppliers the goods and services required for its operation. The Company will use the advantages of Chapter 11 to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary adjustments to face the impact of COVID-19.
This press release contains certain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,” “expect,”, “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. The Company is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeroméxico, Mexico's global airline, has its main operations center in Terminal 2 of the Mexico City International Airport. Its destination network has reach in Mexico, the United States, Canada, Central America, South America, Asia and Europe. The Group's current operating fleet includes 119 Boeing 787 and 737 aircraft, as well as the latest generation Embraer, 170 and 190. Aeroméxico is a founding partner of SkyTeam, an alliance that celebrates 20 years and offers connectivity in more than 170 countries, through the 19 partner airlines. Aeroméxico created and implemented a Health and Hygiene Management System (SGSH) to protect its clients and collaborators at all stages of its operation.
www.aeromexico.com
www.skyteam.com