Largest Latin Airline Files For Bankruptcy

[Economy 52,861]

https://www.bnnbloomberg.ca/latam-airlines-files-chapter-11-bankruptcy-stymied-by-lockdowns-1.1440946

 

"Latam Airlines" the largest Latin air carrier is filing for bankruptcy under chapter 11

 

Chapter 11 is a legal filing that allows companies facing bankruptcy to continue operating as they try to arrange deals with creditors and restructure debt to see if they can stay afloat

[Dramatica 13,698]

It's raining on them Tsunami

[Economy 52,861]

3 minutes ago, Dramatica said:

It's raining on them Tsunami

I feel bad for airlines. They have one of the toughest profit margins out there of all the Industries and now their demand drops nearly 90%

 

They don't have to pay for fuel for flights they don't do but they still have to pay mortgaged planes and storage of planes

 

If too many companies fail the ones that survive will monopolize and prices will go up long term

[Fernster7 7,976]

This is so sad for the people that will lose their jobs. At the same time this airline was expensive as hell and sometimes kinda rude so I've seen a lot of comments on Social Media of people laughing at this.

[Dramatica 13,698]

1 minute ago, Economy said:

I feel bad for airlines. They have one of the toughest profit margins out there of all the Industries and now their demand drops nearly 90%

 

They don't have to pay for fuel for flights they don't do but they still have to pay mortgaged planes and storage of planes

 

If too many companies fail the ones that survive will monopolize and prices will go up long term

I don't know if that's bad or good news for the environment. That means less air travelers which isn't that bad, is it?

[Rbr 421]

Sad news, LATAM is one of the 3 biggest airlines in Brazil, the biggest in Chile and other latin american markets.

Without LATAM the region will lose much of its connectivity to Europe, North America and Oceania.

 

[Economy 52,861]

Just now, Dramatica said:

I don't know if that's bad or good news for the environment. That means less air travelers which isn't that bad, is it?

I suppose that's true

 

But u could say the same about almost any economic pain it's not exclusive to airlines

 

This pandemic has also kept cars off the road and in that sense reduced emissions this year too from that

[Economy 52,861]

Just now, Rbr said:

Sad news, LATAM is one of the 3 biggest airlines in Brazil, the biggest in Chile and other latin american markets.

Without LATAM the region will lose much of its connectivity to Europe, North America and Oceania.

 

There's a chance the company can pull thru if it's chapter 11 restructuring is successful 

 

But many companies that file for chapter 11 end of failing anyway

 

Guess we will see

[Rbr 421]

Just now, Economy said:

There's a chance the company can pull thru if it's chapter 11 restructuring is successful 

 

But many companies that file for chapter 11 end of failing anyway

 

Guess we will see

I hope they will survive. Their fleet is quite new and huge, the amount of jobs lost would be impressive.

Also, if LATAM is over, the ticket prices will increase very much, due to the natural decrease of flights because of the crisis and less one big airline in the continent.

Most latin american governments will not help their recovery I guess. At least in my country, we lost like 4 important airlines the last 20 years, all struggling with profits because of government rules.

[Allan 3,944]

I'm honestly shook. I traveled with them last year 

The amount of people who will lose their jobs, omg 

[Economy 52,861]

1 hour ago, Allan said:

I'm honestly shook. I traveled with them last year 

The amount of people who will lose their jobs, omg 

It sucks cuz if a company survives they can always hire back when things stabalize and demand recovers but when businesses are gone they are just gone they can't hire back. That's one of the reasons (among others) why severe recessions that destroy a lot of companies have a slow recovery like the 2008 crisis

 

Capacity is permanently damaged when too many businesses fail and then it takes time for surviving ones to expand or new startups as well to compensate

 

1 hour ago, Rbr said:

I hope they will survive. Their fleet is quite new and huge, the amount of jobs lost would be impressive.

Also, if LATAM is over, the ticket prices will increase very much, due to the natural decrease of flights because of the crisis and less one big airline in the continent.

Most latin american governments will not help their recovery I guess. At least in my country, we lost like 4 important airlines the last 20 years, all struggling with profits because of government rules.

If most of their fleet is new they could have a lot of planes still mortgaged

 

That's one of the big issue many airlines have. Cuz they've reduced their workforce and obviously they don't use fuel for flights they aren't doing so flight expenses are down why planes aren't being used

 

But they gotta pay their loans whether or not they are making money

 

I wish companies put more emphasis on saving money during good times so that that can whether crashes better especially large companies that have the ability to do so. However to he fair a situation this extreme was hard to invision

 

I think we need laws on executive pay limits and share buyback limits so companies don't feel pressured to compete with one another among shareholders for performance

 

Although something like that would work better if lots of countries (ideally all) did it otherwise international companies just move headquarters. I don't see that happening tho

[Bt1 5,213]

4 hours ago, Fernster7 said:

This is so sad for the people that will lose their jobs. At the same time this airline was expensive as hell and sometimes kinda rude so I've seen a lot of comments on Social Media of people laughing at this.

Almost all airlines in Latin America have similar problems. It has more to do with the fact that most countries in Latin America have a lot of restrictions and taxes for foreign airlines. 

[POPARTHD 7,053]

4 hours ago, Economy said:

https://www.bnnbloomberg.ca/latam-airlines-files-chapter-11-bankruptcy-stymied-by-lockdowns-1.1440946

 

"Latam Airlines" the largest Latin air carrier is filing for bankruptcy under chapter 11

 

Chapter 11 is a legal filing that allows companies facing bankruptcy to continue operating as they try to arrange deals with creditors and restructure debt to see if they can stay afloat

Things went downhill after TAM became LATAM. I wonder if Delta will still go ahead with its purchase of 20% of LATAM.

[Baepsae 5,084]

This is so sad 

LATAM is gigantic. Very important in Latin America (I'm from Argentina). I travelled last year with LATAM and their service was really good