Aeromexico exits bankruptcy with $5 billion investment plan, changes in the airline’s fleet According to Reuters

By Kylie Madry and Valentine Hilaire

MEXICO CITY (Reuters) – Mexican airline Grupo Aeromexico on Thursday said it has been protected for bankruptcy, adding it now plans to spend $5 billion over the next five years on modernization. fleet transformation and other upgrades.

The airline, which filed for bankruptcy after the pandemic dented demand, has detailed plans to receive 22 more planes by 2022, bringing its total fleet to 147 by the end of the year. Last year, the company signed an agreement to buy 28 planes from Boeing (NYSE: Co), which it says will save $2 billion.

Rene Armas Maes, vice president of commercial and aviation consultant at Jet Link International LLC, said the previously announced fleet upgrade could help reduce the company’s fuel costs as the Boeing 737 MAX has a higher fuel capacity. 20% lower operating costs than their predecessors.

In addition to upgrading its fleet, Aeromexico needs to deploy technology that will further reduce unit costs, so that it can better compete with domestic low-cost carriers Volaris and Viva Aerobus, as well as other airlines. no other is operating international routes, he said.

In a press release, the airline said it will also restart some international routes it has suspended during the pandemic, including to London and opening new routes.