The largest airline group in South America is bankrupt and wants to reposition itself with Chapter 11 bankruptcy proceedings in the USA.

The corona crisis does not stop in South America either. Now, of all things, the largest airline on the double continent is hit: Latam Airlines can no longer meet its obligations and files for bankruptcy. This applies to both the corporate group and the subsidiaries in Chile, Peru, Colombia, Ecuador and the United States.

It was already known a few weeks ago that the situation was serious. The carrier announced that it wanted to lay off at least 1400 employees in the subsidiary branches in order to reduce the cost structure. The order for ten Airbus A350s was also canceled. However, these measures are not sufficient. Now you go into bankruptcy protection. "In view of the greatest crisis in the history of aviation, the Supervisory Board approved this path after analyzing all available alternatives to ensure the sustainability of the group," said Ignacio Cueto, President of the Board.

It is no secret that this is not a goodbye forever, but merely a temporary procedure to reposition yourself financially. The management is confident that Latam will be successful again afterwards, as is the case aerotelegraph.com reported. Right now, the publicly traded company would still have $ 1,3 billion in liquidity. Regardless of this, the Latam daughters in Argentina, Brazil and Paraguay are not affected.