MEXICO CITY, Sept. 21, 2020 /PRNewswire/ -- Grupo Aeroméxico, S.A.B. de C.V. ("Aeromexico" or the "Company") (BMV: AEROMEX) today announced that the Company received approval by the United States Bankruptcy Court for the Southern District of New York to modify the majority of its existing aircraft equipment leases into power by the hour agreements ("PBH Agreements") that will substantially reduce Aeromexico's monthly aircraft and engine costs for the duration of the PBH period. PBH Agreements allow for Aeromexico to reset monthly lease costs based on utilization of the equipment at today's market rates, with significant monthly savings, when compared to Aeromexico's original contracted rates. Such PBH Agreements were entered into between Aeromexico and 27 different leasing companies covering 82 aircraft and 14 spare engines.
Andrés Conesa, Aeromexico´s CEO said: "This is a significant milestone in Aeromexico's restructuring process, which paves the way to negotiate long-term agreements with our leasing company and financing partners on the aircraft equipment that makes sense to retain in our strategic fleet".
Aeromexico will continue pursuing, in an orderly manner, the voluntary process of financial restructuring under the Chapter 11 process, while continuing to operate and offer services to its customers and contracting from its suppliers the goods and services required for operations. The Company will continue to use the advantages of the Chapter 11 proceeding to strengthen its financial position and liquidity, protect and preserve operations and assets, and implement the necessary adjustments to manage the impact of COVID-19.
This press release contains certain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. We use words such as "believe," "anticipate," "plan," "expect,", "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "should" and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. The Company is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Grupo Aeromexico
Grupo Aeroméxico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico's global airline, has its main operations center in Terminal 2 of the Mexico City International Airport. Its destination network has reach in Mexico, the United States, Canada, Central America, South America, Asia and Europe. The Group's current operating fleet includes Boeing 787 and 737 aircraft, as well as the latest generation Embraer 190. Aeromexico is a founding partner of SkyTeam, an alliance that celebrates 20 years and offers connectivity in more than 170 countries, through the 19 partner airlines. Aeromexico created and implemented a Health and Hygiene Management System (SGSH) to protect its clients and collaborators at all stages of its operation.
SOURCE Grupo Aeromexico, S.A.B. de C.V.