Aeromexico says adios to the Embraer E170 amid plans to remove 19 jets through bankruptcy

Jul 6, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Aeromexico is moving forward with its bankruptcy reorganization with plans to shed 19 Boeing and Embraer jets as it outlines plans to shrink due to the coronavirus pandemic.

Among the jets that the Mexico City-based carrier plans to return to lessors are all nine of the Embraer E170s flown by its regional affiliate Aeromexico Connect. This would leave the subsidiary with a fleet of just larger E190s.

In addition, Aeromexico wants to return five of its 11 Boeing 737-700s plus five of its 35 737-800s to their owners, the airline outlined in a court filing on July 3. The airline operates a fleet of 126 jets that also includes 19 Boeing 787s.

Sign up for the free daily TPG newsletter for more airline news!

 

View this post on Instagram

 

A post shared by Pablo Alvarado (@airplanemggt) on

Aeromexico is the largest airline in Mexico and a close partner of Delta Air Lines. Together with Delta, the two carriers carried nearly a quarter of all passengers between Mexico and the U.S. — the most of any airline — in 2019, according to U.S. Bureau of Transportation Statistics (BTS) data via Cirium.

Aeromexico and Delta operate under a joint venture between Mexico and the U.S. This allows them to act as essentially a single airline in the market, coordinating schedules and fares, and providing reciprocal amenities for their frequent travelers.

The Mexican carrier considers its Delta partnership “critical” to its business, according to court filings. It plans to maintain all of its agreements, including the joint venture, with the U.S. carrier through the restructuring process.

Related: Aeromexico files for bankruptcy, third Latin American carrier to restructure

Aeromexico continues flying despite its Chapter 11 restructuring. The airline plans to operate about 30% of what it flew a year ago in July, Cirium schedules show. This is up from only about 15% of what it flew a year ago in June.

In addition, Aeromexico’s bankruptcy has had no effect on its Club Premier loyalty program.

The carrier’s decision to retire its E170s will have little impact on U.S. travelers. Aeromexico flew the jets almost exclusively on Mexican domestic routes, save the occasional one-off run to a U.S. destination, in 2019, according to Cirium.

Aeromexico is the third major airline in Latin America, after Avianca and LATAM Airlines, to restructure its business through bankruptcy due to the pandemic. The region’s carriers have been hit hard by the slowdown in travel while few Latin American governments have offered financial assistance to bridge them through the crisis.

Related: More than half of global airlines could ‘die’ without aid, says IATA

Featured image by PEDRO PARDO/AFP via Getty Images.

Chase Sapphire Preferred® Card

WELCOME OFFER: 60,000 Points

TPG'S BONUS VALUATION*: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro APR on Purchases
N/A
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.