Major Airline Azul Files for Bankruptcy—And Announces Plans for the Future
Airlines filing for bankruptcy has been common lately, especially in the years of the pandemic, when multiple international airlines filed for bankruptcy protection.
Now, one major airline has filed for Chapter 11 bankruptcy protection in the United States.
Brazil's Azul has the "highest number of flights and cities served" in Brazil, according to the company, and serves "more than 150 destinations, representing almost double that of our main competitors and we are the only airline on approximately 81% of our routes, leaders in more than 130 Brazilian cities in terms of take-offs and carrying more than 31 million passengers by 2024."
Now, Azul has voluntarily filed for Chapter 11 bankruptcy in the U.S., which will help the company restructure their debut under the supervision of a federal court while being allowed to keep flying and operating.
According to Azul, the airline's restructuring deal will feature a commitment of $1.6 billion in financing and get rid of $2 billion in debt.
In a statement, Azul CEO John Rodgerson described Azul's plans for bankruptcy and the future, noting that "Azul continues to fly – today, tomorrow, and into the future. These Agreements mark a significant step forward in the transformation of our business – one that enables us to emerge as an industry leader in the main aspects of our business."
He added that the company, with the support of its stakeholders, has "made a strategic decision to pursue a voluntary financial restructuring as a proactive move to optimize our capital structure," which was burdened by the various factors, such as the "pandemic, macroeconomic headwinds and aviation supply chain issues."
He added, "Our strategy is not just about financial reorganization. By using this process, we believe that we are creating a robust, resilient, industry-leading airline – one that Customers will continue to love flying, at which Crewmembers will continue to love working, and that will create value for our stakeholders."
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