Aeroméxico to renegotiate leases and debt for aircraft

Grupo Aeroméxico will renegotiate the leasing terms and debts for its aircraft, including restructuring its obligations with Boeing, as part of the company's financial restructuring, the business newspaper El Financiero has reported.

The Aeroméxico (AM, México City International) parent has sought permission from the US Bankruptcy Court for the Southern District of New York to accept the appointment of Connecticut-based consultancy SkyWorks Capital as advisor in the restructuring of its fleet, as well as retaining the company throughout the Chapter 11 bankruptcy proceedings, which the Mexican company initiated in late June.

“SkyWorks will work with [Aeroméxico] to develop a comprehensive plan for the restructuring of [its] aircraft obligations,” a submission to the court said.

The plan will provide “cash flow changes” such as the potential renegotiation of leasing terms or debt.

In accordance with the motion, Aeroméxico wants SkyWorks to negotiate with Boeing a delay or cancellation of orders for the B737 MAX, which has been out of operation for more than a year, as well as resetting the financing model for the rest of the carrier's fleet.

“The debtors appoint SkyWorks as their advisor for a restructuring of the obligations with Boeing with respect to some B737 MAX aircraft,” the document said, something that could “delay or cancel deliveries, and which may include a potential new order.”

The advisors would agree to negotiate and engage in delivery modifications and pre-delivery payments, as well as the completion of a plan to cancel or postpone previous orders with Boeing and, potentially, GECAS, the submission said.

Along with a fleet of five B737-700s, thirty-one B737-800s, nine B787-8s, and ten B787-9s, the Mexican carrier is in possession of six B737-8s, the ch-aviation fleets module shows. It ordered sixty B737 MAX from Boeing, the remaining 54 of which are split between B737-8s and B737-9s. Originally, the carrier hoped to have thirteen MAX aircraft by the end of 2019 and another 20 during 2020.

GECAS, meanwhile, leases seven ERJ 190-100LRs and one ERJ 170-100LR to Aeroméxico Connect operator Aerolitoral (Monterrey Mariano Escobedo). It is one of 24 lessors currently leasing aircraft to either Aeroméxico or Aerolitoral.