Saturday, June 15, 2024

Interjet plans to file for bankruptcy, resume flying

Low cost carrier Interjet is filing for bankruptcy to reorganize financially under Mexican law, and plans to resume operations within months.

Interjet stopped flying on December 11 following three years of continuous net losses, for reasons unrelated to the Covid-19 pandemic.

The airline’s employees are currently on strike, and went seven months without payment before Interjet stopped flights in December.

Since 2013, the airline was profitable only in 2013, 2015, and 2016. Between 2017 and 2019, Interjet had a combined net loss of over US $211 million.

“The objective of this agreement is to resume operations as soon as possible while respecting the employees’ labor rights,” read an Interjet statement.

The company has previously stated that it plans to resume flights between June and July, with a starting fleet of 15 aircraft.

Mexican bankruptcy proceedings can result in financial reorganization or cessation of operations. A third of all bankruptcy processes resulted in cessation of operations between 2000 and 2020, according to government data.

Flag carrier Aeroméxico is also under bankruptcy process, but in the United States. It announced a reduced order of Boeing airplanes last week, and plans to exit from proceedings later this year.

Source: Simple Flying (en)

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