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Wednesday, August 4, 2021

Interjet cancels all flights and could be gone for good

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With just under two weeks left in the year, Interjet has canceled the remainder of its flights for 2020.

And after appearing to make a comeback in June, the low-cost carrier may never resume operations, well-placed sources told local media.

Interjet’s flights had already been grounded for since Dec. 11, and dozens of its flights have been canceled in the last two months as the company struggles to pay for jet fuel and make good on past wages for 5,000 workers. Promises to resume service on Friday went unfulfilled.

Rivals are racing to fill the gap, increasing flight frequencies and resuming services significantly at their hubs since August.

The airline owes nearly six months in social security employee contributions, $131.3 million for fuel and $151.4 million in taxes.

Interjet had found two local investors who agreed to acquire 90% of the airline’s shares, leaving the original owners, the Alemán family, with a 10% stake, but one of those investors pulled out.

Earlier, the International Air Transport Association removed Interjet from its association.

Before the pandemic, the budget airline was Mexico’s third-largest airline after Aeromexico and Volaris. Among its routes was one connecting Mérida and Mexico City.

Earlier this year, Aeromexico became the third airline in Latin America — after Avianca and LATAM — to file for Chapter 11 bankruptcy protection in the U.S.

Sources: Airline Geeks, Simple Flying

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