Grupo Aeroméxico, S.A.B. de C.V. ("Aeromexico" or the "Company") (BMV: AEROMEX) reports that significant progress has been made in Collective Bargaining Agreement (Contratos Colectivos de Trabajo) negotiations with its unions, progress that was necessary to face the adverse effects caused to the airline industry by the global COVID-19.
As of today, the Company has satisfactorily concluded negotiations with the Sindicato de Trabajadores de la Industria Aeronáutica, Comunicaciones Similares y Conexos de la República Mexicana (STIA) and with the Sindicato Nacional de Trabajadores al Servicio de las Líneas Aéreas, Transportes, Servicios, Similares y Conexos Independencia (Independencia).
Likewise, negotiations with the Asociación Sindical de Sobrecargos de Aviación de México (ASSA), are continuing in the best conditions, aligned with the objectives required to access the financing that will give viability to the Company.
It is also important to highlight that the ASSA, Independencia and STIA unions complied with the optimization and staff reduction program in October and November necessary for the Company to continue its restructuring process.
The company continues in negotiations with the Asociación Sindical de Pilotos Aviadores de Mexico (ASPA) seeking to achieve the necessary conditions established in the restructuring plan and recognizes the effort made by ASPA to contain the negative effects of the pandemic.
The concluded agreements, along with those that are in under negotiation, are necessary for the Company to comply with certain commitments and objectives required by the DIP Lenders under the Senior Debtor in Possession Credit Facility ("DIP Financing"), obtained within the Company's voluntary financial restructuring process, under the Chapter 11 of the Bankruptcy Code of the United States of America.
The Company will continue working in a coordinated manner with its unions in order to comply with the necessary conditions to request the next disbursement under Tranche 2 of the DIP Financing facility. The remaining disbursements are subject to the fulfillment of additional goals, conditions and objectives.
Andrés Conesa, CEO of Aeromexico, commented: "The favorable outcome of the negotiations with the Independencia and STIA unions, as well as the progress with the flight attendants union ASSA, represents an extremely important milestone to have access to the next stages of DIP financing under our restructuring process. These agreements are a product of the enormous effort, contributions, and support of all Aeromexico employees. Likewise, we also hope to conclude negotiations with ASPA within the established timeframe and within the necessary conditions. We recognize the invaluable support of our unions so that Aeromexico consolidates in the future as the leading airline in our country and continues to unite Mexico with the world."
Aeromexico will continue pursuing, in an orderly manner, the voluntary process of its financial restructuring under the Chapter 11 process, while continuing to operate and offer services to its customers and contracting from its suppliers the goods and services required for operations. The Company will continue to use the advantages of the Chapter 11 proceeding to strengthen its financial position and liquidity, protect and preserve operations and assets, and implement the necessary adjustments to manage the impact of COVID-19.