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Significance
LATAM is seeking to raise an estimated USD2.15bn to stay afloat while it resizes its operations and restructures its balance sheet to adjust to COVID-19's implications for the airline industry.
Impacts
With Aeromexico, LATAM and Colombia’s Avianca in bankruptcy proceedings, regional airline competition will be greatly reduced.
LATAM’s downsizing will have an important local economic impact through its numerous suppliers, many of which are small businesses.
In Chile, LATAM faces a class action suit which claims it owes customers some 200 million dollars, mostly for cancelled flights.
Keywords:
Latin America,
LA/C,
Chile,
Argentina,
Brazil,
Colombia,
Mexico,
economy,
industry,
social,
airlines,
corporate,
finance,
health,
regulation,
transport,
tourism,
Transport & logistics,
Travel & Tourism
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2020
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