Grupo Aeromexico reaches agreement on aircraft fleet transactions

By Sarah Lizee

Olympia, Wash., April 23 – Grupo Aeromexico, SAB de CV has reached an agreement to increase its fleet with 24 new Boeing 737 aircraft, including B737-8 and B737-9 MAX and four 787-9 Dreamliner aircraft as part of the airline's restructured agreements with the manufacturer and lessors to incorporate new aircraft, according to a press release.

“This continues the debtors’ process of realigning the composition of their fleet with expected operations and adding more fuel- and cost-efficient Boeing 737 MAX aircraft that will offer an upgraded customer experience and improved profitability,” the company said in court documents filed Friday.

Aeromexico said it estimates that the transactions will create total savings of over $800 million for the debtors comprising over $350 million of savings on restructured existing leases, over $300 million of savings on amended sale leaseback transactions and about $150 million of maintenance cost savings.

Additionally, the debtors estimate that the transactions will result in a reduction of capital expenditures, interest expenses and related costs of almost $2 billion that, absent the transactions, would otherwise have been incurred in respect of aircraft and engines that would have been surplus to the debtors’ requirements.

Finally, the transactions will avoid over $1 billion of potential unsecured claims that would have resulted from rejection of pre-petition agreements that are instead being amended under the transactions to reflect current market terms.

The comprehensive agreements are subject to the approval of the U.S. Court for the Southern District of New York.

Grupo Aeromexico, a holding company for commercial aviation, is based in Mexico City. The company filed Chapter 11 on June 30, 2020 under case number 20-11563.

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