MOSCOW (Pakistan Point News / Sputnik - 26th May, 2020) The LATAM Airlines Group, one of the largest carriers in South America, has filed for Chapter 11 bankruptcy protection in the United States amid an unprecedented fall in demand during the ongoing COVID-19 pandemic, the airline said in a statement on Tuesday.
According to the statement, the airline group and its affiliates in Chile, Peru, Colombia, Ecuador, and the United States have filed for bankruptcy protection in the hope of reorganizing and restructuring their debt.
"We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group. We are looking ahead to a post-COVID-19 future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of our passengers and employees being paramount," LATAM CEO Roberto Alvo said in the statement.
The airline has blamed the COVID-19 outbreak for a significant fall in revenues that could have long-lasting impacts.
"LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future," Alvo stated.
The airline was initially founded in Chile in 1929. Before the COVID-19 outbreak, LATAM and its subsidiaries operated a fleet of more than 300 aircraft to both short- and long-haul destinations.
The global passenger air travel industry has been one of the most severely impacted by the ongoing COVID-19 pandemic. According to the International Air Transport Association, the global industry losses incurred as a result of the outbreak will range from $63 billion to $113 billion.
On Monday, the German government agreed on a nine-billion-euro ($9.8 billion) bailout for flag carrier Lufthansa.
