Aeromexico, which is in the process of analyzing its options for restructuring its short- and medium-term financial commitments, was thrown a $50m financial lifeline on Monday by investment holding company Aimia. Aeromexico’s shares tanked earlier in June after a newspaper column said it was considering filing for bankruptcy, though the airline later clarified it had not decided whether to seek Chapter 11 protections in the US. Aeromexico and Aimia said in separate statements they inked a definitive agreement to amend a shareholders agreement between them and a commercial agreement between Aeromexico and PLM Premier, the operator of the Club Premier loyalty program. PLM made an initial $50m loan to Aeromexico under an existing intercompany loan facility after the signing of a letter of intent between Aimia and Aeromexico announced on May 12. “An additional $50m advance to Aeromexico by PLM through pre-purchases of award tickets was provided with the execution of the amendments to the commercial agreement. This financial support totals $100m and is secured by Aeromexico’s stake in PLM,” the firms said. Aeromexico and Aimia said they will explore options to leverage PLM’s debt-free balance sheet and cash flows to provide additional resources to shareholders, including a potential leveraged recapitalization of PLM’s balance sheet.<br/>
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The Italian government has picked former Poste Italiane CEO Francesco Caio as Chairman of Alitalia, PM Giuseppe Conte said, as the carrier prepares to return under state control after 11 years of private management. Fabio Lazzerini, who is currently serving as the carrier’s Chief Business Officer, will be appointed CE, Conte said. In March the government was forced to cancel a planned sale of the airline as Alitalia’s deep-rooted financial problems were exacerbated by the coronavirus crisis that has devastated the global airline industry. Airline traffic, in terms of number of kilometres travelled by paying passengers, is expected to fall by at least 65% this year compared with 2019 as a consequence of the health crisis, AlixPartners consultancy firm estimates.<br/>
A passenger who was allowed to board a Garuda Indonesia flight from Jakarta to Sorong, West Papua, despite having recently tested positive for COVID-19 had been cleared for travel by health authorities, the carrier has said. “All passengers on the flight received validation and clearance from relevant authorities regarding compliance with health requirements for flight passengers,” Garuda president director Irfan Setiaputra said Sunday. Flight GA 682 had also followed physical distancing protocols, with passengers limited to 62% of total capacity, Irfan said. He added that Garuda had disinfected the aircraft and had requested that the cabin crews on duty that day self-quarantine. “We will conduct intensive coordination and communication regarding the follow-up to this incident in order to ensure that health procedures for flights during the new normal transition period run optimally,” Irfan said. Sorong Airport Health Office coordinator Farida Tariq said that health officials had discovered that the passenger, a 20-year-old student, had tested positive for the virus during a routine health document check conducted upon arrival at Domine Eduard Osok Airport in Sorong on Saturday. According to the latest government regulations on air travel, all prospective passengers must provide documents showing a negative COVID-19 polymerase chain reaction (PCR) or rapid test result before being allowed to fly.<br/>
Smartwings Group, which includes flagship carrier Czech Airlines, could cut up to 600 jobs by February 2021 because of the coronavirus crisis, it said on Monday. The carrier, which has about 2,500 employees and operates a fleet of 50 planes on mainly European routes, has been in talks with the Czech government over state aid. The government agreed on Monday that transport and travel companies may be eligible for a state loan guarantee programme. Smartwings, controlled by founder Jiri Simane and Chinese state investment company CITIC, said the first 29 dismissals had been discussed with unions on Monday.<br/>