Aeromar workers left hanging as Mexican airline collapses

Employees of Mexican airline Aeromar went on strike on Thursday in response to the company's failure to pay wages, but the company has ceased operations, citing financial insolvency.

The pilots union (ASPA) warned earlier in the week that it was planning strike action over Aeromar's failure to pay wages, but the airline announced that it had filed for bankruptcy, putting the fate of some 500 employees in the hands of the Mexican government. 

ASPA leader Humberto Gual said that Aeromar's debts to pilots are 105mn pesos (US$5.6mn) and he also called on the government not to allow airline owner Zvi Katz to cheat employees and authorities by not paying owed salaries and taxes.

It “was a badly managed company. It's one of those cases where companies go bankrupt, but not the owners,” AMLO said in a press conference, adding that the government is seeking to relocate the workers.

The president ruled out the option of a financial bailout for Aeromar and blamed the owners for abandoning the company. 

Consumer protection agency Profeco also called on more than 4,000 Aeromar customers to join a class action against the airline.

Last week, the government warned Aeromar that it must pay 554mn pesos owed to Benito Juárez international airport (AICM) and the terminals controlled by state-owned operator ASA. But new reports revealed that the company had further debts with government entities such as tax authority SAT.

Questioned about the situation, deputy transport minister Rogelio Jiménez Pons told Milenio TV on Thursday that the growth of Mexico's aviation industry will alleviate the crisis and that other airlines are already looking to hire some of the Aeromar employees. 

Mexico's aviation industry has undergone various changes under the López Obrador administration. 

In early February, the government published a decree in the official gazette ending cargo operations at AICM, with the aim of decongesting the terminal. 

The government is also yet to regain its category 1 aviation safety rating after the infrastructure, communications and transport ministry (SICT) worked for a full year to convince the US Federal Aviation Administration (FAA) that it was able to meet the required standards.