Does anyone seeing Interjet flying in 2022? Even if they get some help to stay afloat i can't see that being anything but temporary.
Yes, THIS government will not let them go belly up.
In my opinion, the current administration (government) will let Interjet go belly up for several reasons: First, Interjet was already in a very bad financial situation before the COVID-19 crisis started; the pandemic came at the worst time for Interjet when it was trying to get cash from every source possible and it was already shrinking. Second, even if they shrink to 33 planes (as you stated), the airline is overstaffed and, to right size it, they will have to lay off many employees; in Mexico, you have to provide severance packages (according to the labor law) based on the number of years served at base pay which translates into huge amounts of cash that Interjet doesn't have. Most of its employees will not leave voluntarily in a country where finding a similar job will be virtually impossible. Third, if they get financial support from the government, AeroMexico, Viva, Volaris will ask for similar grants/loans and with the current government budget there is no money to provide grants or even massive loans when there have been deep cuts to almost every government agency (ministry) and the main source of revenue for the government (oil) is at its lowest price in decades. Lets be realistic, even medicines are scarce in Mexico with cancer and HIV patients not being able to get their drugs to survive. Fourth, the Aleman family doesn't want to invest a single more cent in the airline and i don't see private money or banks offering loans without collateral (assets) which Interjet doesn't have.
Interjet was about to become a Mexicana 2.0 but with the global pandemic they can look for ways to get concessions from employees, vendors, etc. and try to save the airline (even if it is at 1/3 of its current size). I don't like to see airlines go belly up, but the reality is that many will stop operations in the next week or so and some will never fly again.
How much longer can Interjet last?
I think Interjet will ground all planes in a couple of weeks (down with other mexican airlines) and they will never be able to restart operations
OK I know everyone here is ready to declare them bankrupt, but are we sure this is Interjet going under and it has nothing to do with, oh I don't know, the global pandemic that has put a ground stop to the majority of flights worldwide and has lead to thousands of aircraft being grounded across the planet within a few weeks?
As stated above, Interjet was in a very weak financial situation before the pandemic started. Unless they get grants from the government (very unlikely in Mexico), it will be very difficult for them to survive. They might not be alone, there are other airlines in Mexico that have weak financials (TAR and Aeromar), but even AeroMexico, Viva and Volaris might have trouble surviving if weak demand continues for months
Last edited by rojo
on Sun Mar 29, 2020 8:43 pm, edited 1 time in total.