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Aeromexico finalizes two union negotiations in bankruptcy proceedings

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Aeromexico

Grupo Aeromexico has aroused discussions with two labor unions but remains in talks with two more, it said on Tuesday in an update on negotiations that are a requirement for the airline to receive the second tranche of bankruptcy financing.

Aeromexico filed for Chapter 11 bankruptcy protection in a U.S. court in June, after the coronavirus pandemic slammed the global travel industry.

There was approval for the carrier for up to $1 billion in debtor-in-possession (DIP) financing. They also received an initial $100 million payment in September.

Aeromexico said it had committed negotiations with the STIA and Independencia unions, which represent airline industry workers. In the meantime, it remains in talks with the ASSA and ASPA unions, which represent flight crews and pilots respectively.

It failed to detail the terms of the finished agreements. Therefore, there are requirements for the airline to achieve agreements with all four unions. This is to access the second tranche of DIP funding.

“The favorable outcome of the negotiations with the Independencia and STIA unions, still because the progress with the flight attendants union ASSA. Therefore, it represents an especially important milestone to possess access to the subsequent stages of DIP financing under our restructuring process.,” Aeromexico Chief Executive Andres Conesa said during a statement.

The company in November requested permission from a U.S. bankruptcy court to dismiss 1,830 employees, including 855 unionized workers.

 

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