Mexico’s Interjet to File for Bankruptcy Protection After Vote

Interjet shareholders unanimously voted to approve a filing for bankruptcy protection, a move that would enable the Mexican airline to resume payments to employees that have been frozen for several months.

Alejandro del Valle, who took a 90% stake in the carrier late last year, led discussions over the filing with former majority owners and founders Miguel Aleman Magnani and his father, Miguel Aleman Velasco.

“The objective of this agreement is to have the company operating again as soon as possible while prioritizing workers’ rights,” the statement read.

Interjet is the second Mexican airline to file for bankruptcy protection since the start of the coronavirus pandemic last year. Grupo Aeromexico SAB filed in June after the virus devastated demand for air travel worldwide. Unlike U.S. airlines, Mexican carriers didn’t receive government aid.

Interjet, formally known as ABC Aerolineas SA de CV, hasn’t flown since Dec. 11, according to data compiled by online tracker Flightradar 24. The carrier’s active fleet dwindled to four jets after most of its Airbus SE planes were repossessed last year by lessors amid financial woes that predated the pandemic.

The airline on Friday filed for an injunction to further delay payments to employees and said that the bankruptcy filing, or “concurso mercantil” in Spanish, would prioritize payment to workers.

©2021 Bloomberg L.P.

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