Aeromar, the airline that up until today was the longest-operating Mexican airline, has officially announced it is ceasing all operations. The announcement is no surprise, as last November, the Mexican government rejected a rescue plan for Aeromar.

Aeromars ceases operations after 35 years

November 7, 1987, marked the day of Aeromar's founding. Over its 35-year history, the airline provided regional services in Mexico and flew to the United States and Cuba. When ceasing operations, Aeromar was serving 21 domestic and three international destinations. Years of financial troubles, including significant debts rumored to be valued at over $600 million owed to the government, airports, service providers, and employees, ultimately led to today's announcement. Aeromar is the second Mexican airline to cease operations in recent years, with Interjet being the first in 2020.

The airline shared in an official statement that a series of financial problems and the difficulty in reaching deals which could keep the company afloat and operating long-term. Throughout the pandemic, the airline made serious financial adjustments to improve its condition, but those were not enough to save it from eventually ceasing all operations. Over the last four years, Aeromar worked closely with the federal government, having its finances audited and approved. The end of Aeromar leaves a significant gap in Mexico's regional market, one that could be taken up by Mexico's newest regional airline, Aerus, which is set to begin commercial services during the year's first trimester.

Before making the final decision to shut down, Aeromar says it made every effort to save the jobs of almost 700 employees and their families. All base salaries from last year have been fully liquidated, and extra payments on top of wages are still pending. Mexico's labor ministry has accompanied the entire process and is aware of every detail. Passengers with outstanding Aeromar airfare need to wait while Aeromar finds alternatives and makes deals with the authorities familiar with the situation.

A domino effect

Two weeks ago, Simple Flying's Latin American Lead Journalist, Daniel Martinez Garbuno, reported that the end of Aeromar could come within two weeks. At the time, numerous reports were circulating about the end of the airline. This came after authorities at Benito Juárez International Airport had seized the airline's hangars, and Aeromar faced severe fines for tax evasion and owed airport fees. Even before today's announcement, the airline canceled operations from numerous airports, including Cancun International (CUN), Mérida International (MID), and Chetumal International (CTM).

Shortly after reports began circulating of the impending end of Aeromar's operations, it appeared that Nella, a Brazilian company, would merge with Aeromar. On social media platforms, Aeromar had changed its username to "Aeromar by Nella," but no official announcement was ever made of a merger or acquisition. Reportedly, Nella and Aeromar were due to meet with the government two days ago.

Late last week, Mexico's Federal Civil Aviation Agency notified the nation's Navigation Services that three of Aeromar's aircraft could not be included in further operations. José Rivera, general commander of MEX, also signed the order that Aeromar's aircraft be grounded. All three grounded aircraft were ATR 72-600s, leaving the airline with just two operational aircraft for the last few days of operations.