by Mia Taylor
Last updated: 1:35 PM ET, Thu February 16, 2023
Struggling with debts totaling at least $26.7 million, the Mexican airline Aeromar is calling it quits.
The small, regional airline, whose website says it flew an average of 100 daily flights, announced a "definitive end" of operations on Wednesday. The airline said in a statement that it has been unable to recover from the pandemic downturn. Reuters reported that the airline had failed to reach agreements with its providers and a potential investor.
"The company's team made deep financial adjustments to improve its situation," the company said. "However, at an adverse time, aggravated during the Covid-19 pandemic, the measures taken were not enough to stabilize the company's situation."
Aeromar was the oldest airline in Mexico, according to the carrier's website. It was incorporated in 1987 and was headquartered in Mexico City. It operated both national and international scheduled and chartered flights and serviced 19 destinations. Some of the locations serviced by Aeromar included Texas and Havana, Cuba. Its focus was flying between Mexico City and popular beach resort destinations.
Aeromar is hardly the first Mexican airline to face financial challenges in recent years on the heels of the pandemic. Last March, Aeromexico emerged from the bankruptcy process after 20 months under Chapter 11. Since then, however, Aeromexico has been expanding operations and now flies to Europe and Asia. The Mexican airline Interjet also declared bankruptcy in recent years.
Among its debts, Aeromar owes more than 500 million pesos, or about $26.8 million, to the Mexico City International Airport for fuel services.
An Aeromexico flight. (photo via Aeromexico (Photo via: Aeroméxico))In its statement, the airline said that the base salaries of employees from the past year had been "liquidated in full." Only a few benefits have yet to be paid, according to the statement. Though employee unions paint a different picture and have said the airline still owes them millions of dollars.
The airline's assets, which included 10 aircraft (only five of which were in service) have been seized, according to Reuters. The fleet included seven ATR72-600s and three ATR42 planes. Mexico's Ministry of Labor said the assets were taken in order to guarantee payment of the workforce.
For the latest travel news, updates and deals, be sure to subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
