COVID 19: LATAM Airlines Group makes bold moves in restructuring
LATAM Airlines Group is making significant moves as it formally restructures under Chapter 11 bankruptcy protection in order to withstand the severe downturn in demand spurred by the COVID-19 pandemic, which continues to escalate in many regions of Latin America.
The company has partnered with its Brazilian rival Azul in a codesharing deal that will give both airlines an expanded domestic presence, and ultimately an opportunity to shore up revenue when demand starts to rebound. It is a somewhat surprising move, but the crisis created by COVID-19's spread has forced airlines worldwide to make unprecedented moves to remain viable.
Perhaps unsurprisingly, LATAM has opted to pull out of Argentina's domestic market, which is essentially closed down until Sep-2020. Prospects for airlines in Argentina remain dim, and government-owned Aerolineas Argentinas could be the last airline standing.
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