Grupo Aeroméxico, S.A.B. de C.V. ("Aeromexico" or the "Company") (BMV: AEROMEX) today announced that the Company received approval by the United States Bankruptcy Court for the Southern District of New York to modify the majority of its existing aircraft equipment leases into power by the hour agreements ("PBH Agreements") that will substantially reduce Aeromexico's monthly aircraft and engine costs for the duration of the PBH period. PBH Agreements allow for Aeromexico to reset monthly lease costs based on utilization of the equipment at today's market rates, with significant monthly savings, when compared to Aeromexico's original contracted rates. Such PBH Agreements were entered into between Aeromexico and 27 different leasing companies covering 82 aircraft and 14 spare engines.
Andrés Conesa, Aeromexico´s CEO said: "This is a significant milestone in Aeromexico's restructuring process, which paves the way to negotiate long-term agreements with our leasing company and financing partners on the aircraft equipment that makes sense to retain in our strategic fleet".
Aeromexico will continue pursuing, in an orderly manner, the voluntary process of 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.