COVID-19: Mexico’s airlines - government support and/or consolidation?
Mexican airlines are bracing for the peak of COVID-19, estimated to occur in the country in May-2020, by instituting dramatic capacity cuts and working with suppliers to obtain short term relief for cash outlay commitments.
Those airlines are also working to preserve precious liquidity, but unlike others in many regions of the world, Mexico’s government has yet to craft an aid package for its airlines. As a result, the country’s two largest airlines, Aeromexico and Volaris, are attempting to stress the importance of government aid, as revenue has been nearly wiped out and credit markets start to tighten.
It has not yet been determined that the government will ultimately offer some aid to Mexico’s airlines, but Aeromexico and Volaris are joining a growing consensus that there will be fewer airlines operating in Mexico once the crisis is over.
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