Grupo Aeroméxico is to invest USD5 billion over the next five years, mainly to expand its fleet, following its successful exit from Chapter 11 bankruptcy protection.
“Aeroméxico is planning to invest approximately USD5 billion over the next five years in fleet and customer experience improvements,” the company announced in a statement. Since 2021, it had taken delivery of 31 aircraft and expected to receive 22 more over the course of 2022. At the end of the year, it expected to have a fleet of 145 aircraft with an average age of seven years.
The Group on March 17, 2022, announced it had concluded its financial restructuring process and had emerged from Chapter 11 following the plan’s approval by creditors and the US Bankruptcy Court in New York.
As a result of the plan, the company has gained access to about USD1.5 billion in new capital. The equity value of the reorganised company is about USD2.564 billion.
A total of 150,066,355 shares have been issued by the company, including new subscribed shares of 136,423,959 valued at about MXN389 pesos (about USD19) per share.
The largest shareholders of the reorganised company include funds managed by Apollo Global Management, Delta Air Lines, as well as existing and new Mexican investors that formed the group with voting control. The Baupost Group, Silver Point Capital, Oaktree Capital Management, and other funds that were part of the socalled “Ad Hoc Groups of Creditors” are also shareholders after investing about USD720 million in new capital.
This is in addition to other amounts related to fees accrued on the “Debtor-in-Possession (DIP) facility and on the new equity contributions payable in new stock as provided in the reorganisation plan.
Additionally, key stakeholders are funding new exit debt of about USD762.5 million in the form of new US dollar-denominated notes.
A new board of directors has been formed that is comprised of a majority of Mexican nationals and independent members in full compliance with Mexican foreign investment law and regulations. Existing Board Chairman Javier Arrigunaga and Chief Executive Officer Andres Conesa remain in their posts.
"We look forward to starting a new chapter in our company’s history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future,” Conesa commented in a statement. “As we move forward, we will not only continue to streamline our company to become even more sustainable, resilient, and competitive, but we will also significantly expand our network and fleet,” he disclosed.
Throughout the restructuring process, Aeroméxico worked to expand its operations sustainably, opening six new routes, restarting service on more than 30, and increasing its total seat offering by more than 320% compared to June 2020 figures.
The company currently flies 84 national and international routes, connecting cities in Mexico to the European market through Madrid Barajas, Spain. In 2022, Aeroméxico planned to continue building on this momentum, including the restart of services to London Heathrow, it said.
According to the ch-aviation fleets module, Aeroméxico (AM, México City International) currently has on order: seven B737-8s, eight B737-9s, and four B787-9s. It existing fleet of 91 aircraft comprises thirty-six B737-800s, twenty-five B737-8s, five B737-700s, seven B737-9s, eight B737-8s, and ten B787-9s. Its Aerolitoral (Monterrey Mariano Escobedo) subsidiary operates a further forty-three E190s.
