LATAM Files For Bankruptcy - LATAM Argentina Ceases Operations Indefinitely

LATAM has filed for Chapter 11 Bankruptcy Reorgnization



LATAM is now the latest airline to file for bankruptcy. The airline group will restructure under Chapter 11 protection in the United States.

While restructuring, LATAM plans these initial actions:

  • LATAM Airlines Group and its affiliates will continue to operate passenger and cargo flights, subject to demand and travel restrictions.
  • All current and future tickets, travel vouchers and frequent flyer miles and benefits, as well as flexibility policies, will be honored.
  • The group’s employees will continue to be paid and receive benefits as provided in their employment agreements.

These actions will allow LATAM to ensure long-term sustainability and continue flying.

This Chapter 11 Bankruptcy filing covers all LATAM subsidaries except for LATAM Argentina, Brazil and Paraguay.

Additionally, LATAM plans to return these aircraft to their lessors as part of restructuring:

  • 1 Airbus A319
  • 1 Airbus A320
  • 11 Airbus A321s
  • 2 A350-900s
  • 4 Boeing 787-9s.

LATAM CEO Roberto Alvo:

LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future. We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group. We are looking ahead to a post-COVID-19 future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of our passengers and employees being paramount.”

LATAM has an infographic explaining the process. Notably, they use the US3’s previous bankruptcies as examples of sucessful restructuring.

image

So far, LATAM has already secured $900 million in funding from its largest shareholders, the Cueto and Amaro families and Qatar Airways. LATAM has approximately $1.3 billion at hand.

Sources/Image

Image: https://www.flickr.com/photos/coatsaerospace/47146730261/in/photostream/

Announcement: https://www.latam.com/en_us/press-room/releases/LATAM-announces-reorganization-to-ensure-long-term-sustainability/
Bloomberg: https://www.bloomberg.com/news/articles/2020-05-26/latam-airlines-files-chapter-11-bankruptcy-stymied-by-lockdowns?sref=Yg3sQEZ2&utm_source=twitter&utm_content=markets&utm_medium=social&cmpid=socialflow-twitter-business&utm_campaign=socialflow-organic&cmpid%3D=socialflow-twitter-markets&__twitter_impression=true&__twitter_impression=true

Infographic: https://www.latam.com/en_us/press-room/releases/LATAM-announces-reorganization-to-ensure-long-term-sustainability/

If it isn’t clear, no, LATAM did not “bite the dust".

They will continue flying and hopefully re-emerge as a stronger carrier.

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I was literally about to link the song then I saw this. Meh.

I still nominate this as the Aviation Song of 2020.
Another One Bites The Dust - Music Video


Sad news for LATAM, hopefully they do come back good, since I have wanted to fly them before.

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Was booked to fly them in July. Lucky I got my money out of them before this! Bad to see them in this state though.

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What… no :(


Not LATAM, aviation is not doing well at all during COVID-19

They are doing perfectly fine. It’s all a money and power game.

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This sucks. I hope they can recover.

LATAM is my favorite Livery to fly on its so sad seeing it collapse.

AnOtHeR oNe bItEs tHe dUsT

Omg
This COVID-19 thing is really crippling the Aviation industry 🥺

2020 just didn’t get enough of us yet

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I wouldn’t feel sorry for them, they’ll come out of this fine and they’ve practically got a near monopoly over South America

Oh no :( but I’m glad they’re able to restructure though & come out of this better & stronger than before I have faith in them

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Delta has decided to cancel orders for 4 of LATAM’s A350s they were supposed to receive. Delta has to pay $62 million for this cancellation 💀

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I hope they do recover from this blow. It seems that they have thought it out very nicely though, thanks for the great article!

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Please please nobody say it “bit the dust.” Chapter 11 is for restructuring, not liquidation. And to be honest that quote is getting old fast.

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I’m gonna be brutally honest here and say what worked for American Airlines may not work for LATAM. Keep in mind, American first went through C11BP in '11. They merged with then-US Airways, so they could stay alive. This time is different. There’s a global pandemic going around, and we don’t have a clue as to when it will end. If LATAM cannot return to profitability soon because of the pandemic, there is no reason to keep it on life support. It’s all a part of the cycle of business. There will be some casualties, and we may have to accept the fact LATAM could become one of them. Now, if we all band together, practice social distancing, and follow cautionary measures that our government health agencies have provided, we can confine this pandemic to its rightful place in the history books, and LATAM will survive. which I hope it does, bc their livery is pretty cool.

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Those are likely going to be the 4 A350-1000s that LATAM had on order.

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First it was Avianca, now them. Oooh booy… Don’t cease don’t cease DON’T. BLOODY. CEASE.

Wow this really sucks there a big company my goodness.

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No this is not real! I really love their livery! Every time I went to Orlando Florida! I really hope they come back!