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LAXintl
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Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 9:45 pm

Things continue to look difficult at Interjet.

Last week court ordered airline to pay tax authorities USD $27.9mil in accumulated debts. Authorities stated they would commence seizing 10% of the carrier's cash to start paying tax backlog.

Separately carrier has decided to sell its SSJ100 fleet and seeks $16-17mil per frame. As of today only 6 of 22 acquired frames are operational. One frame was dismantled for parts leaving 21 available for sale though many are reported in poor technical state.

https://www.ch-aviation.com/portal/news ... 9mn-in-vat
https://mundo.sputniknews.com/america-l ... erjet-100/
https://www.eturbonews.com/262318/only- ... d-of-them/
From the desert to the sea, to all of Southern California
 
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gatibosgru
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 9:56 pm

But does anyone want to buy SSJs?
@DadCelo
 
EIBPI
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 9:57 pm

I doubt they will get $5mil per frame.

What are the Cityjet frames doing these days? Accumulating parking fees somewhere I suspect.
 
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Polot
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 9:59 pm

LAXintl wrote:

Separately carrier has decided to sell its SSJ100 fleet and seeks $16-17mil per frame.

:rotfl: :rotfl: :rotfl:

Good luck with that!
 
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Spacepope
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 10:08 pm

Polot wrote:
LAXintl wrote:

Separately carrier has decided to sell its SSJ100 fleet and seeks $16-17mil per frame.

:rotfl: :rotfl: :rotfl:

Good luck with that!


Isn't this the same airline that said they got 10 SSJs for the price of one A320?
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CairnterriAIR
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 10:25 pm

Kind of reminds me of when my friend tried to sell his 2000 Ford Explorer with a bad transmission for $5500.
 
dcajet
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 10:27 pm

The plot of the drama Interjet and those SSJ-100 has more comings and goings than I care to remember! How many times have they put them up for sale?
"Unattended children will be given espresso and a free kitten"
 
jimbo737
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 10:30 pm

They’ll be lucky to get $1m per airframe.

They’ll likely end up being containers for your favorite adult beverage.

The fat lady is warming up her vocal cords when it comes to Interjet.
 
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Dutchy
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 10:56 pm

Well there be any SSJ's outside of Russia or the immediate neighborhood? So who would be potential takers, must be one already own quite a bunch.
Many happy landings, greetings from The Netherlands!
 
zkncj
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 10:59 pm

gatibosgru wrote:
But does anyone want to buy SSJs?


Air Koryo? Would probably be the only one.

Or if they were much cheaper an random airline somewhere in Africa.
 
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Devilfish
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 11:14 pm

gatibosgru wrote:
But does anyone want to buy SSJs?

EIBPI wrote:
I doubt they will get $5mil per frame.

They should ask CU if it is accepting donations. :airplane:
"Everyone is entitled to my opinion." - Garfield
 
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janders
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 11:18 pm

One of the daily news summaries I receive had the following blurb:

Interjet (Mexico) is looking for buyers for its 21 operable SSJ100s at a price of US$16-17 million each. Russian lessors may be interested.
"We make war that we may live in peace." -- Aristotle
 
rbavfan
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Fri Aug 23, 2019 11:54 pm

janders wrote:
One of the daily news summaries I receive had the following blurb:

Interjet (Mexico) is looking for buyers for its 21 operable SSJ100s at a price of US$16-17 million each. Russian lessors may be interested.


In all fairness the plane is very nice & efficient when it has parts. If they could get parts, on time, vs Russia's awful reputation for being bad at parts supply. There would be more buyers. Thats why I worry about the MC-21. If they don't fix the parts supply chain the orders will die off fast. You can't make money on a well built but cheap plane if you can't get parts.
 
CairnterriAIR
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 12:12 am

rbavfan wrote:
janders wrote:
One of the daily news summaries I receive had the following blurb:

Interjet (Mexico) is looking for buyers for its 21 operable SSJ100s at a price of US$16-17 million each. Russian lessors may be interested.


In all fairness the plane is very nice & efficient when it has parts. If they could get parts, on time, vs Russia's awful reputation for being bad at parts supply. There would be more buyers. Thats why I worry about the MC-21. If they don't fix the parts supply chain the orders will die off fast. You can't make money on a well built but cheap plane if you can't get parts.


I’m guessing there is more to this story in the fact that the airline simply got into a financial jam and simply could not afford replacement parts. Better to use what funds they have to keep the bigger jets flying.
 
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Polot
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 12:18 am

CairnterriAIR wrote:
rbavfan wrote:
janders wrote:
One of the daily news summaries I receive had the following blurb:

Interjet (Mexico) is looking for buyers for its 21 operable SSJ100s at a price of US$16-17 million each. Russian lessors may be interested.


In all fairness the plane is very nice & efficient when it has parts. If they could get parts, on time, vs Russia's awful reputation for being bad at parts supply. There would be more buyers. Thats why I worry about the MC-21. If they don't fix the parts supply chain the orders will die off fast. You can't make money on a well built but cheap plane if you can't get parts.


I’m guessing there is more to this story in the fact that the airline simply got into a financial jam and simply could not afford replacement parts. Better to use what funds they have to keep the bigger jets flying.

Who knows. Interjet has been very evasive about the status of their SSJ fleet for over a year now, although anyone could look them up and see many had not flown for months (now many for year+).
 
Gulfstream500
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 12:47 am

Maybe the Smithsonian will take one if Interjet pays for the ferry flight.


Or... Lion Air could take them in place of the MAX!
Thinking of a good signature is hard...
 
MaksFly
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 1:12 am

rbavfan wrote:
janders wrote:
One of the daily news summaries I receive had the following blurb:

Interjet (Mexico) is looking for buyers for its 21 operable SSJ100s at a price of US$16-17 million each. Russian lessors may be interested.


In all fairness the plane is very nice & efficient when it has parts. If they could get parts, on time, vs Russia's awful reputation for being bad at parts supply. There would be more buyers. Thats why I worry about the MC-21. If they don't fix the parts supply chain the orders will die off fast. You can't make money on a well built but cheap plane if you can't get parts.


Keep in mind many of the issues were actually the cause of SSJ's European partners.

For MC21 the parts availability is a big thing and being worked on.
 
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Devilfish
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 3:13 am

Gulfstream500 wrote:
Or... Lion Air could take them in place of the MAX!

Mt Salak might still be fresh in their minds.
"Everyone is entitled to my opinion." - Garfield
 
jetblueguy22
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 3:24 am

rbavfan wrote:
janders wrote:
One of the daily news summaries I receive had the following blurb:

Interjet (Mexico) is looking for buyers for its 21 operable SSJ100s at a price of US$16-17 million each. Russian lessors may be interested.


In all fairness the plane is very nice & efficient when it has parts. If they could get parts, on time, vs Russia's awful reputation for being bad at parts supply. There would be more buyers. Thats why I worry about the MC-21. If they don't fix the parts supply chain the orders will die off fast. You can't make money on a well built but cheap plane if you can't get parts.

It was really telling that Mitsubishi was willing to buy Bombardier’s assets simple for the supply chain.
Look at sweatpants guy. This is a 90 million dollar aircraft, not a Tallahassee strip club
 
MIflyer12
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 24, 2019 10:08 am

MaksFly wrote:
Keep in mind many of the issues were actually the cause of SSJ's European partners.


Sorry, but supply chain establishment and management is just one of the necessary competencies air frame manufacturers must possess.

(And 2nd the note on Mitsubishi's purchase of the CRJ program to get that. They weren't buying new frame backlog.)
 
mugler
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sun Aug 25, 2019 4:37 am

Polot wrote:
CairnterriAIR wrote:
rbavfan wrote:

In all fairness the plane is very nice & efficient when it has parts. If they could get parts, on time, vs Russia's awful reputation for being bad at parts supply. There would be more buyers. Thats why I worry about the MC-21. If they don't fix the parts supply chain the orders will die off fast. You can't make money on a well built but cheap plane if you can't get parts.


I’m guessing there is more to this story in the fact that the airline simply got into a financial jam and simply could not afford replacement parts. Better to use what funds they have to keep the bigger jets flying.

Who knows. Interjet has been very evasive about the status of their SSJ fleet for over a year now, although anyone could look them up and see many had not flown for months (now many for year+).


I believe their CEO stated they would only keep around 6 frames and continue flying some routes that could use the aircraft. The rest are parked at MEX, TLC, GDL, and MTY I believe. The SSJ was certainly the biggest mistake Interjet could have made and they still regret. Good thing is that everyone that was involved in bringing those planes to the fleet is long gone from the company.
 
Tokyo777
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sun Aug 25, 2019 4:55 am

Perhaps it's 16-17million pesos per frame?
 
travaz
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sun Aug 25, 2019 5:23 am

Perhaps they can tell the tax man they will give them all 22 of the frames and they are worth 15-17 Mil apiece. The tax man will make a huge profit!! :spin: :santahat:
 
Wayfarer515
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sun Aug 25, 2019 6:01 pm

mugler wrote:
Polot wrote:
CairnterriAIR wrote:

I’m guessing there is more to this story in the fact that the airline simply got into a financial jam and simply could not afford replacement parts. Better to use what funds they have to keep the bigger jets flying.

Who knows. Interjet has been very evasive about the status of their SSJ fleet for over a year now, although anyone could look them up and see many had not flown for months (now many for year+).


I believe their CEO stated they would only keep around 6 frames and continue flying some routes that could use the aircraft. The rest are parked at MEX, TLC, GDL, and MTY I believe. The SSJ was certainly the biggest mistake Interjet could have made and they still regret. Good thing is that everyone that was involved in bringing those planes to the fleet is long gone from the company.


Not everyone, the owner is still there and he certainly was full aware of the acquisition of the Sukhois. Interjet should first of all pay their taxes and also pay their suppliers if they want to complain about anything. As some other forum members pointed out, there's more than meets the eye on this SSJ saga, of course Safran/Powerjet and Sukhoi are big part of the problem, but SSJs stopped flying once the s**t hit the fan on Interjet's financials, and not other the way around. The shady history of the Aleman family is enough to take everything they say with abundance of grains of salt.
 
filipinoavgeek
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Mon Aug 26, 2019 12:48 am

It's really hard to believe that Russian manufacturers can't get their act together when it comes to spare parts and maintenance. Could they not simply afford it or something?
 
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mercure1
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Mon Aug 26, 2019 3:27 am

Interjet needs to first figure out its place in the market.

Its essentially earns ULCC revenues but tried to do so with more spacious network carrier like 150 seat A320s while competitors like Volaris and Viva Aerobus pack in 186.

The airline has muddled along for years and yet has been unwilling to properly focus in on a the right mode.

And yes the SSJ has been a terrible distraction for the airline with so much of potentially productive fleet grounded earning zero income.
mercure f-wtcc
 
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mercure1
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Interjet CFO “technically bankrupt” at risk of collapse

Fri Aug 30, 2019 10:58 pm

Seems the house of cards is about to collapse after years of ongoing losses.



Mexican airline Interjet is in “technical bankruptcy” and at risk of collapse, according to its finance chief, following an order to start paying off nearly $30 million in back taxes.

Interjet beat back an attempt by authorities to seize control of its bank accounts in an effort to collect nearly 550 million pesos ($27 million) in unpaid taxes dating to 2013. But a judge this month ordered the closely held carrier to deposit 10% of its monthly revenue as a guarantee until the debt is paid.

The tax collector is putting Interjet “in a serious predicament of economic viability, preventing it from continuing its normal operations,” Chief Financial Officer Raul Lopez said in a court filing opposing the seizure attempt. “The company’s results from 2013 to 2018 clearly show accumulated losses that can be interpreted as the airline’s technical bankruptcy.”

That’s a phrase that in Mexico is typically used to describe a situation where liabilities outweigh assets, but Interjet hasn’t filed for protection from creditors. Still, Lopez’s 77-page filing, which hasn’t been released publicly, describes how weak investor appetite and a fleet of balky Russian jetliners have pushed the airline into financial distress.


Mexico’s Interjet Warns of ‘Technical Bankruptcy’ Amid Tax Feud
https://www.bloomberg.com/news/articles ... d-tax-feud
mercure f-wtcc
 
hloutweg
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Fri Aug 30, 2019 11:05 pm

I haven’t flown on Interjet, but as a carrier that devoured some of the market that Mexicana left behind after their collapse, it’s sad to see this other airline in such a predicament.
In Varietate Concordia
 
dcajet
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Fri Aug 30, 2019 11:47 pm

The airline is saying the report is "false"

https://twitter.com/Enel_Aire/status/11 ... 0409744386

Bad week for big-mouthed (or very candid) airline executives! First Avianca and now Interjet...
"Unattended children will be given espresso and a free kitten"
 
ShamrockBoi330
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Sat Aug 31, 2019 12:28 am

hloutweg wrote:
I haven’t flown on Interjet, but as a carrier that devoured some of the market that Mexicana left behind after their collapse, it’s sad to see this other airline in such a predicament.


i fly it regularly between YYZ and CUN and have to admit it offers the best priced, best comfort, and best service between the 2 compared to anyone else on the route... due to fly with them next week, hope its not true, fantastic airline!
 
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PacoMartin
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Sat Aug 31, 2019 1:18 am

I think it is possibly the only single class "premium economy" airline in the world.
 
sunking737
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Sat Aug 31, 2019 1:28 am

How fast can those Airbus get picked up around the world??
"Don't believe it unless its parked on the ramp, or printed in the schedule...SUBJECT TO CHANGE"

I'm a SUNDUCK......Worked for RC & SY @ MSP
 
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TWA772LR
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Sat Aug 31, 2019 1:32 am

If/when Interjet goes under, would it be blamed on bad business model? Incompetence? SSJ?
When wasn't America great?


The thoughts and opinions shared under this username are mine and are not influenced by my employer.
 
IAHWorldflyer
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Re: Interjet CFO “technically bankrupt” at risk of collapse

Sat Aug 31, 2019 2:31 am

TWA772LR wrote:
If/when Interjet goes under, would it be blamed on bad business model? Incompetence? SSJ?


Bad business model and purchasing SSJ without a proper spare parts contract.
As one example, several times in 2017 and 2018, I flew them IAH-MEX for less than $225r/t. And the taxes on that were $95! So I basically flew in a seat with 34" pitch, had free alcohol and snacks, for $65 of revenue each way. There's no way they made money off me. But they are a great ride!
 
Gregd75
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 31, 2019 2:44 pm

After US-MEX deregulation, the battle between airlines has been intense.

AM and the US3 used to dominate US-MEX flights.
Y4, 4O and VB national routes

This has been turned in its heads and its brutal. Fares are very cheap (at times) and I wonder how airlines are making money.

Turns out, they aren’t.
AM recently posted losses, I think I’m correct in saying Y4 doesn’t turn a profit (but its moving in the right direction). Not sure about VIV and 4O seem yo be struggling.

My prediction is that in the next 12 months 4O will close. AM, Y4 and VIV will acquire the MEX and JFK slots and grow into the space that Interjet will leave.
 
jimbo737
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 31, 2019 5:05 pm

The airline business relies on consumer confidence for advance bookings.

Once the confidence goes, the airline is basically done.

Who wants to risk future travel
plans and having to deal with the associated brain damage when there are numerous other viable and stable alternatives available?

Old timers may recall how long it took for Canadi>n Airlines to collapse in the fall of 1999 once the true nature of the situation leaked out.

60 days.

In the meantime, they’ll flail around in the market, discount everything in sight to try and keep the fat lady at bay.

For Mexican carriers, it’ll likely get worse before it gets better. Much better.

Therein lies the opportunity.
 
IAHWorldflyer
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Joined: Mon Feb 06, 2012 7:22 pm

Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 31, 2019 5:32 pm

jimbo737 wrote:
The airline business relies on consumer confidence for advance bookings.

Once the confidence goes, the airline is basically done.

Who wants to risk future travel
plans and having to deal with the associated brain damage when there are numerous other viable and stable alternatives available?

Old timers may recall how long it took for Canadi>n Airlines to collapse in the fall of 1999 once the true nature of the situation leaked out.

60 days.

In the meantime, they’ll flail around in the market, discount everything in sight to try and keep the fat lady at bay.

For Mexican carriers, it’ll likely get worse before it gets better. Much better.

Therein lies the opportunity.



I can only speak to one route ( MEX-IAH), but AM and UA have completely stopped even trying to come close to matching 4O's fares in the market, and now only match each other. Generally, AM and UA run about US$550 four weeks out, while 4O is around US$375. That tells me the incumbents believe people will pay more for stability. I'm sorry to say my flight last week on 4O might have been my last. It's been a good airline to fly. But, yes, I'm afraid to do a future booking on them right now.
 
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LAXintl
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Re: Tax man comes after Interjet; SSJ fleet put up for sale

Sat Aug 31, 2019 5:40 pm

Gregd75 wrote:
AM recently posted losses, I think I’m correct in saying Y4 doesn’t turn a profit (but its moving in the right direction). Not sure about VIV and 4O seem yo be struggling.


Volaris posted what analyst called "stellar" earnings as recently as Q2.
https://www.nasdaq.com/article/volaris- ... -cm1187210

Interjet and Viva Aerobus are private so they don't need to share audited public earnings.

AM yes had a pretty poor results in Q2 losing Mxn 1.1bil (US $55mil)
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