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MEXICO CITY (Reuters) – Mexican airline Aeromar announced the “definitive end” of operations on Wednesday, as the heavily indebted company failed to reach agreements with providers and a rumored potential investor.
The struggling company is the latest in a string of Mexican airlines hit with major financial woes in recent years, following Interjet in 2020 and Aeromexico, which came out of bankruptcy proceedings last March.
Like its peers, Aeromar was hit hard by the coronavirus pandemic in 2020, but had shown signs of financial struggles before.
Mexican President Andres Manuel Lopez Obrador floated aiding the ailing company in October, though that help never materialized. Instead, the government purchased the brand of defunct carrier Mexicana to launch a military-run commercial line.
Aeromar owes millions of dollars to employees, unions allege, though the carrier on Wednesday said base salaries from the past year had been “liquidated in full” and that just some benefits had yet to be paid.
The company’s assets were seized at employees’ request, the labor ministry said. Aeromar reports owning 10 aircraft, however, flight data point to just five being operational.
The company also owes the Mexico City International Airport some 552 million pesos ($29.7 million), not including interest, the airport said on Wednesday.
Rumors of a potential investment were sparked in January, when union workers said the company had told them a golden ticket could be on the way.
Last week, Aeromar rebranded its social media accounts to “Aeromar by Nella,” hinting at a tie-up with fledgling Brazilian carrier Nella Airlines, which has purchased other small Latin American carriers in recent years.
An Aeromar spokesman declined to comment on the potential purchase at the time.
The shuttering leaves Aeromar’s almost 600 employees in the lurch. They may join competitor airlines, the transportation ministry said, adding it had begun talks with the other carriers.
Affected union workers are expected to go on strike Thursday, the labor ministry added.
($1 = 18.5909 Mexican pesos)
