SANTIAGO - Latin America’s largest airline LATAM has filed for Chapter 11 bankruptcy in the US due to the coronavirus (COVID-19) crisis.
As reported by Reuters, the airline group is the world’s largest airline so far to file for bankruptcy during the pandemic. Headquartered in Chile’s capital Santiago, LATAM also operates subsidiaries in Argentina, Brazil, Colombia, Ecuador, Paraguay, and Peru.
In an official statement, LATAM said it would continue operating flights through the restructuring process, using US$900 million raised from major shareholders such as Qatar Airways. Prior to the bankruptcy filing, the company terminated 1,800 employees out of over 40,000.
While the Chilean government said it would “consider” contributing to LATAM’s restructuring, it did not offer a bailout much like other Latin American countries that have been reluctant to bail out airlines due to severe budget constraints.
As previously reported by IDNFinancials.com, earlier this month Colombian flag carrier and the world’s second-oldest airline Avianca filed for Chapter 11 bankruptcy in New York after failing to obtain emergency aid from the Colombian government to repay a US$65 million bond. (MS)