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News Article

Mexican Government Will Not Take Over Interjet

By Sofía Hanna | Tue, 12/15/2020 - 17:37

Interjet has been accumulating debt to government institutions and its personnel for the last year. Following the cancellation of most of its flights, delayed salaries to employees and owing government entities millions, but there have even been requests to the government to take care of the situation.

 

A previous MBN article highlighted when PROFECO released a second warning to consumers against buying tickets from the airline. Interjet has significantly reduced its fleet and with the level of debt the company is handling, there could even be issues with Interjet buying fuel for said flights, opening the door to more cancellations. Former Interjet employees have presented 50 demands asking for the money owed to them since March of this year.  The amount owed by the airline is MX$11 billion (US$552 million), according to Milenio. Added to these demands, there have been others coming from customers accusing the airline of "fraud" for selling tickets that later on got canceled.

 

Given the lack of response and uncertainty regarding the company’s future, employees have turned to the government to take control of the situation. Due to the risk of Interjet going bankrupt, there is a chance that all the money owed would be lost and not much could be done. Employees from ABC Airlines released the document sent to the Mexican government to state their current situation and concerns. "Leaving Interjet in the hands of current shareholders clearly threatens national security, economy and public interest. We consider that the national economy is harmed when a competitor disappears from the segment. Under the management of these shareholders, it is possible that the company will go bankrupt and the Mexican economy will suffer," reads the letter. Employees are asking the Mexican government to acquire the company, reported Milenio

 

The petition was made on Dec. 11. By Dec. 15, after a meeting with the Ministry of the Interior, it was decided that the government will not acquire Interjet. The next meeting to discuss the company's financial situation will be held sometime next week and will gather authorities and the President of the Airline's Board of Directors, Alejandro del Valle, according to Milenio. The article also mentions the company would be canceling flights from Dec. 15 to Dec. 17 due to overdue fuel payments, based on a statement from Airports and Auxiliary Services (ASA). This body will suspend jet fuel credit and supply to Interjet due to its mounting debt. According to Forbes, this issue was also aggravated as Interjet does not have a credit contract with ASA, so all fuel must be paid before every flight.

Sofía Hanna Sofía Hanna Junior Journalist and Industry Analyst