Avianca Filing For Bankruptcy
Following the news and updates around the COVID-19 pandemic, many airlines were forced to suspend or reduce their daily operations. We have the latest information from airlines and hotels all around the world. Unfortunately, many airlines are struggling to stay afloat during the pandemic, even though travel restrictions are being eased all over the world. Virgin Australia was the first large airline to fall under the pressure of the COVID-19 pandemic. We also saw airlines like South African Airlines, SAS, British Airways, and many more being forced to fire a big number of employees due to lack in demand. Even the world's second-oldest airline, Avianca was forced to file for bankruptcy protection. Now, LATAM Argentina announced they will cease all passenger and cargo traffic for an indefinite period.
LATAM Filed For Chapter 11 Bankruptcy Protection In The US
On May 26, LATAM Airlines Group filed to reorganize under Chapter 11 protection in the US. LATAM was forced to cancel 95% of its flights as the coronavirus pandemic started to spread. They are the largest airline in Latin America with its competitor Avianca suffering the same fate.
From the official press release:
“Our group has shared our journey with the people of Latin America, thriving in times of growth and pulling together to overcome times of adversity. LATAM will emerge from this process a more efficient, resilient, and ultimately strengthened airline group that is better placed to serve Latin America.”
Affiliates of LATAM in Argentina, Brazil, and Paraguay were not included in Chapter 11, and now LATAM Argentina announced that they will cease all operations indefinitely.
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LATAM Argentina Ceases All Operations
Only three weeks after LATAM filed for Chapter 11 Bankruptcy protection its subsidiary LATAM Argentina announced that they will cease passenger and cargo operations for an indefinite period of time because of the current situation. The carrier was hit hard with the lack of demand caused by the coronavirus pandemic and travel restrictions.
From the official press release:
“This is regrettable but inevitable news. Today, LATAM must focus on transforming the group to adapt to post-COVID-19 aviation,” said Roberto Alvo, CEO of LATAM Airlines Group. “Argentina has always been a fundamental country for the group and will remain so, with LATAM's other affiliates continuing to connect passengers from Argentina with Latin America and the world.”
LATAM Argentina will cease flights to 12 domestic destinations. However, international destinations in the United States, Brazil, Chile, and Peru will continue to be served by other LATAM affiliates, once COVID-19-related travel restrictions are lifted.