Aeromexico pilots' union says agrees to cuts of $350 mln over bankruptcy talks

MEXICO CITY, Jan 27 (Reuters) - A pilots’ union for Mexico’s Grupo Aeromexico said it had accepted cuts amounting to $350 million on collective bargaining pacts in negotiations required for the airline to win a second tranche of bankruptcy financing.

The Association of Airmen Pilots (ASPA) voted to accept the reduction over the next four years to support the firm’s financial restructuring, it said in a statement.

Salary cuts for pilots ranged between 5% and 15%, while 79 pilots facing job cuts will be compensated under the agreement. The pilots also accepted fewer benefits, the union added.

“After this complex negotiation, the airline has the opportunity to rethink its employment relationship and recognize that workers are one of its most valuable assets,” ASMA labor secretary Jesús Abdalá Babun said.

An Aeromexico spokesman declined to comment on the statement.

Aeromexico filed for Chapter 11 bankruptcy protection in a U.S. court in June, after the coronavirus pandemic slammed the global travel industry.

The carrier was approved for up to $1 billion in debtor-in-possession (DIP) financing, and received an initial $100 million payment in September.

The company said in December it had completed negotiations with two other unions. (Reporting by Sharay Angulo; Writing by Cassandra Garrison; Editing by Clarence Fernandez)