Aeromexico says adios to the Embraer E170 amid plans to remove 19 jets through bankruptcy
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
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
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.