Mexico City-based low-cost carrier Interjet, which once provided affordable lift options between Canada and popular Mexican destinations, has entered a commercial bankruptcy process as part of a restructuring move.
Reports say that “100 per cent” of Interjet shareholders on Monday (April 26) agreed to begin bankruptcy proceedings, joining another Mexican airline, Aeromexico, which is currently going through a Chapter 11 in the United States.
Latin America has seen several airlines file for bankruptcy or fold completely amid the COVID-19 pandemic, which continues to batter consumer confidence in air travel.
EasyFly in Colombia, for example, is currently restructuring, while airlines like TAME in Ecuador and One Airlines in Chile have gone under completely.
Interjet has not flown nationally for more than four months and this latest move is intended to attract new investors to the company, reports say.
“The objective of this agreement is to return the operation of the company as soon as possible, giving priority to the rights of the workers,” reads a company statement, as reported by Riviera Maya News.
Interjet halted operations on Dec. 11 amid a workers strike. As of March, the airline’s liabilities totalled around 1.2B peso, with just over $25M owed to payroll workers.
Reports say the airline is in talks with three investment funds to rehabilitate the struggling airline.
Alejandro del Valle, owner of Interjet, reportedly has plans to settle commitments with workers and eventually, with suppliers and customers.
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