Aeromexico continues union talks, hopes to meet DIP loan conditions

By Sarah Lizee

Olympia, Wash., Dec. 31 – Grupo Aeromexico, SAB de CV said it is continuing negotiations with two of its unions, Asociacion Sindical de Sobrecargos de Aviacion de Mexico (ASSA) and Asociacion Sindical de Pilotos Aviadores de Mexico (ASPA).

The agreements are necessary for the company to comply with certain commitments and objectives required by the lenders under its senior debtor-in-possession credit facility, the company said.

Aeromexico said negotiations with ASSA continue advancing in the best conditions, and it expects to reach an agreement during the seven-day grace period established in its credit agreement, but the ASPA union has not yet accepted the company's proposal.

The company said it recognizes the effort that the unions have made to contain the negative effects of the pandemic and will continue to work in a coordinated manner with its representatives in order to meet the necessary conditions to request the next disbursement under the second tranche of the DIP financing.

As of Tuesday, the company has satisfactorily concluded negotiations with the Sindicato de Trabajadores de la Industria Aeronáutica, Comunicaciones Similares y Conexos de la Republica Mexicana (STIA) and with the Sindicato Nacional de Trabajadores al Servicio de las Líneas Aereas, Transportes, Servicios, Similares y Conexos Independencia (Independencia), as previously reported.

“The favorable outcome of the negotiations with the Independencia and STIA unions, as well as the progress with the flight attendants union ASSA, represents an extremely important milestone to have access to the next stages of DIP financing under our restructuring process,” Andres Conesa, chief executive officer of Aeromexico, said in the initial release.

Aeromexico said it will continue pursuing its 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.

Grupo Aeromexico, a holding company for commercial aviation, is based in Mexico City. The company filed Chapter 11 on June 30, 2020 under case number 20-11563.

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