Monday, July 22, 2024

Mexican airlines will invest several million dollars to modernize its fleet

Must Read

In this way, the company, which was exposed to financial disgrace during the Covid-19 epidemic and was bailed out by very strong government operations to support it, has used the past two years to implement financial restructuring under US bankruptcy law. join.

This legal process has just ended, according to a press release, with a capital value of approximately 2.56 billion dollars, allowing new investments in the indicated amount.

Among the airline’s major shareholders are funds from Apollo Global Management and Delta Air Lines as well as Mexican investors. The memo said Popost Group, Silver Point Capital, Oaktree Capital Management and other creditors also became owners of the company.

Mexico Airlines clarified in the statement that under the plan, investors contributed about $720 million in new capital, in addition to other amounts of guaranteed preferential financing and capital contributions payable in new shares.

Investors are also underwriting approximately $762.5 million of new debt in the US market, bringing the total to approximately $1.5 billion of new capital.

He adds that as part of the plan, a new board of directors was formed with a majority of Mexican citizens and independent members. The company stressed that during the process it opened six new lanes, restarted its service on more than 30, and increased its total seat offering by 320 percent.

Additionally, it plans to expand its fleet through the aforementioned $5 billion investment over the next five years.

The company indicated that since 2021 it has received 31 aircraft, and it is expected that another 22 aircraft will arrive in the remainder of the year, to have a fleet of 147 aircraft with an average age of seven years.

See also  The consumer price index fell 0.3% in July, its first contraction in more than two years

Moving forward, we will continue to modernize the company to make it more sustainable and competitive, and significantly expand the fleet, all while continuing to maintain our position as Aeromexico.

m / lma

Latest News

Spanish banks’ default rate rises to 3.6% in May

MADRID (EFE) - The default rate in Spanish banks rose in May to 3.6%, from 3.59% in April, mainly...

More Articles Like This