Shares of bankrupt Mexican carrier Grupo Aeromexico (AEROMEX.MX) fell almost 15% after surging more than 10% on Thursday in volatile trading in the wake of restructuring measures announced last week. The stock hit a historic low last week after the airline said its existing shares would be subject to a public tender offer by an unnamed third party valuing them at 0.01 peso each. Analysts attributed this week's rise to speculation and predicted more volatility until the restructuring plan is clarified. Aeromexico said after markets closed on Wednesday that Sociedad Alinfra submitted a formal request to carry out the tender offer, in line with the airline's plans.<br/>
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Kenya’s government has scrapped a plan to fully nationalize the partly state-owned airline and is looking at other ways to safeguard money it has loaned the carrier, according to the International Monetary Fund. It will cost a projected $1b to restructure Kenya Airways and an injection of the funds by the state will be “unavoidable” as the East African nation’s Treasury has already guaranteed $750m of debt owed by the carrier, the IMF said. “The authorities do not intend to nationalize the carrier and are considering appropriate mechanisms to protect the exchequer’s financial interests during the restructuring process,” the Washington-based leader said in a statement issued after its second review of the nation’s extended-credit facility. KQ, as the airline is known, needs a radical overhaul of its business model to minimize the burden it places on the state given challenges threatening the aviation industry in the post-pandemic environment, the IMF said. Changes required include cutting back on its operations and staff, enhancing efficiency and renegotiating leases and suppliers’ contracts, it said. <br/>
Korean Air, Korea's national flag carrier, said Thursday it will secure 557.8b won ($470m) through a property sale as part of its efforts to improve its financial status amid a prolonged COVID-19 pandemic. On Friday, Korean Air will sign a deal to sell its land and building at Songhyeon-dong in central Seoul to the public housing developer Korea Land and Housing Corp., the company said in a regulatory filing. LH will exchange the Songhyeon-dong site with real estate of the Seoul Medical Center, which is owned by the Seoul Metropolitan Government, it said. The asset sale is expected to help relieve the country's biggest carrier's financial difficulties due to the pandemic. In February last year, Korean Air announced its plans to sell its idle property in Seoul and non-core assets amid growing uncertainties in the pandemic-hit airline industry. Korean Air purchased the Songhyeon-dong site from Samsung Life Insurance in 2009 and planned to develop a cultural complex.<br/>