Grupo Aeroméxico reported that it has seven days to continue negotiations with the pilots’ union and achieve an adjustment to the collective bargaining agreement.
This period known as the Credit Agreement or Cure Period is foreseen in the voluntary financial restructuring process under Chapter 11 of the Bankruptcy Law in the United States.
Aeroméxico needs to make adjustments to the pilots’ collective bargaining agreement in order to access Tranche 2 of the guaranteed preferential financing known as DIP Financing.
Last night, the Association of Pilots Aviators of Mexico (ASPA) rejected by majority the alternative proposal to that of the airline that the union had prepared to support Aeroméxico’s restructuring process.
The union’s proposal aimed to save 22% and freeze pilots’ salaries for 4 years.
In a statement sent to the Mexican Stock Exchange, Grupo Aeroméxico highlighted that negotiations with all of its unions have not yet concluded.
“In relation to the Association of Pilots Aviators of Mexico (ASPA), the union has not yet accepted the company’s proposal, which is essential to be able to meet the commitments and objectives required by the funders to access the subsequent disbursements under the DIP Financing ”, detailed the airline.
While negotiations with the Mexican Aviation Flight Carriers Association (ASSA) continue to advance in the best conditions, the company expects to conclude the agreements during the seven-day period mentioned above.
Consequently, Aeroméxico will continue negotiations with ASPA in order to reach agreements during the Cure Period.
The pilots are dissatisfied because Aeroméxico did not give a salary increase corresponding to annual inflation of 3.25%, for 643 pilots that make up the Aeroméxico Connect plant, which was agreed between both parties in November 2019.
However, the airline requested authorization from the Court in New York to dispose of 1.6 million dollars to grant bonuses to 50 “essential” executives; Amount with which the salary increase for Aeroméxico Connect pilots would have been covered for several months.