MEXICO CITY, March 17 (Reuters) – Mexican airline Grupo Aeromexico (AEROMEX.MX) said on Thursday it had emerged from bankruptcy protection, adding that it now plans to spend $5 billion over the next next five years for its fleet modernization and other upgrades.
The airline, which filed for bankruptcy after the pandemic sent demand plummeting, detailed plans to receive 22 more aircraft in 2022, bringing its total aircraft fleet to 147 by the end of the year. Last year, the company signed a deal to buy 28 planes from Boeing Co (BA.N), which it said would result in savings of $2 billion. Read more
The previously announced fleet upgrade could help reduce the company’s fuel costs since the Boeing 737 MAX costs 20% less than its predecessors to operate, said Rene Armas Maes, vice president of commercial and aviation consultant at Jet Link International LLC.
Beyond modernizing its fleet, Aeromexico needs to implement technology that further reduces unit costs, to better compete with low-cost local carriers Volaris (VOLARA.MX) and Viva Aerobus, and peers operating international connections, he said.
In a press release, the carrier said it would also restart some international routes it had halted during the pandemic, including to London, and open new ones.
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Reporting by Noe Torres, Laura Gottesdiener and Valentine Hilaire; Written by Kylie Madry; Editing by Anthony Esposito, Tim Ahmann and Bernard Orr
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