The small Mexican airline Aeromar announced Wednesday it is closing down due to financial problems after failing to recover from a pandemic downturn.
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The regional carrier operated 21 routes in Mexico and flew to McAllen and Laredo in Texas and Havana, Cuba. It specialized in flying routes between Mexico City and beach resorts.?
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Aeromar said in a statement that it had not been able to recover from financial difficulties stemming from the global downturn in travel caused by the Covid-19 pandemic starting in 2020.?
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The Mexico City international airport said in a statement that Aeromar owed about USD 27.5 million in fees, services, and other debts.?
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The airline did not say what options would be available to travelers who already purchased tickets. It was also unclear what would happen to the company's nearly 700 employees.
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The Labor Department said it was working to see if other airlines could hire the Aeromar staff.
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The airline was founded in 1987 with a fleet of about ten ATR turboprop airplanes. It was the second Mexican carrier to go broke as a result of the pandemic. In December 2020, the low-cost carrier Interjet ceased operations.
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Aeromar's announcement left Mexico with only three main domestic carriers: Aeromexico and the low-cost airlines Volaris and Viva Aerobus.?
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Mexican President Andrés Manuel López Obrador has proposed creating a state-run airline operated by the armed forces. He has also angered airline executives with proposals to allow foreign airlines to operate domestic routes in Mexico.?