The main airline in Latin America LATAM, was declared Tuesday in bankruptcy in the United States, lack of ability to meet its deadlines financial after the fall of its activity driven by the pandemic of coronavirus, but it will continue to ensure that his rare air links for the moment.
“Given the impact of the crisis generated by the COVID-19 on the aviation industry, LATAM has been forced to take a series of decisions extremely difficult in the last few months,” said its CEO, Roberto Alvo, in a video statement.
“The group LATAM Airlines and its affiliates in Chile, Peru, Ecuador and Colombia have engaged in a reorganization voluntary protection under chapter 11 in the United States,” added Mr. Alvo.
The company, which announced on Wednesday that a recovery is still very much part of its flights in June, said that there would be no immediate effect on its activity of transport of passengers or goods.
In the United States, the use of chapter 11 is a device that allows a business no longer repay its debt restructuring by creditors.
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In April, the company’s Latin american had reduced its flights to 95% and suspended all of its international routes due to the spread of the epidemic, which has struck down the entire airline industry world trade.
LATAM announced in mid-may, the dismissal of 1,400 employees of its subsidiaries in Chile, Colombia, Ecuador and Peru, a decision that adds to a program of voluntary retirement to about 800 people.
The airline, born of the merger of LAN in Chile and TAM in Brazil, dessert usually 145 destinations in 26 countries. She had hitherto more than 42 000 employees and operates in normal times 1400 daily flights, carrying more than 74 million passengers per year.