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LATAM Airlines Group S.A. is an airline holding company headquartered in Santiago, Chile. It is considered the largest airline company in Latin America with subsidiaries in Brazil, Colombia, Ecuador, Paraguay and Peru. The company filed for
Chapter 11 Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
bankruptcy in the United States on 26 May 2020, due to economic problems attributed to the
impact of the COVID-19 pandemic on aviation The COVID-19 pandemic has had a significant impact on the airline industry due to travel restrictions and a decimation in demand among travelers. Significant reductions in passenger numbers have resulted in flights being cancelled or planes ...
. Although LATAM Airlines' headquarters are located in Chile, the carrier is an
American depositary receipt An American depositary receipt (ADR, and sometimes spelled ''depository'') is a negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets. Shares of many non-U.S ...
and traded on both the
Santiago Stock Exchange The Santiago Stock Exchange (SSE) ( es, Bolsa de Comercio de Santiago), founded on November 27, 1893, is Chile's dominant stock exchange, and the third largest stock exchange in Latin America, behind Brazil's BM&F Bovespa, and the Bolsa Mexicana ...
and New York Stock Exchange at the time of bankruptcy. The company's stock ticker (LTMAQ) was unlisted from the NYSE and later moved to the unregulated OTC Markets Pink on 12 June 2020.


History


Merger

Chile's LAN-Chile and Brazil's TAM Linhas Aéreas signed a non-binding agreement to merge on 13 August 2010, followed by a binding agreement on 19 January 2011 and papers to close the merger on 22 June 2012, with TAM Linhas Aéreas' shareholders agreeing to the takeover by LAN Airlines. Enrique Cueto, former CEO of LAN, became the CEO of LATAM; Mauricio Rolim Amaro, formerly vice-chairman of TAM, became LATAM chairman.


Government approvals

The agreement to establish LATAM was approved by Chilean authorities on 21 September 2011, with 11 restrictions. These included transferring four
landing slot __NOTOC__ A landing slot, takeoff slot, or airport slot is a permission granted by the owner of an airport designated as Level 3 (Coordinated Airport), which allows the grantee to schedule a landing or departure at that airport during a specific t ...
s at São Paulo-Guarulhos International Airport to competitors interested in operating flights to Santiago de Chile's Comodoro Arturo Merino Benítez International Airport, renouncing membership to either the Oneworld or
Star Alliance Star Alliance is the world's largest global airline alliance. Founded on 14 May 1997, its CEO is Jeffrey Goh and its headquarters is located in Frankfurt am Main, Germany. , Star Alliance is the largest of the three global alliances by passenge ...
airline alliance, restricting the increase in capacity on flights between Brazil and Chile, and opening code-share possibilities and fidelity program membership to interested competitors. On 14 December 2011, Brazilian authorities approved the agreement, imposing similar restrictions as Chilean authorities: LATAM would have to choose an alliance by August 2012 and frequencies between São Paulo and Santiago de Chile would have to be reduced. At the time, TAM had two pairs of slots while LAN had four. LAN had to relinquish two pairs to competitors interested in using them. On 7 March 2013, LATAM announced its final decision to choose Oneworld as its global airline alliance. As a result, TAM left Star Alliance during the second quarter of 2014 to join Oneworld.


Rebranding

In August 2015, it was announced that all LATAM Airlines Group
airline An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in wh ...
s would fully rebrand as LATAM, with one unified livery to be applied on all aircraft by 2018. The rebranding included all aspects of the business, such as staff uniforms and airport check in facilities. The first of the aircraft were repainted (or delivered new) in the new LATAM livery in April 2016.


2019–2020: Delta stake, Oneworld departure, and Enrique Cueto steps down

On 26 September 2019,
Delta Air Lines Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
announced its plans to buy 20% of LATAM for $1.9 billion, to expand Delta's access to the Latin American market. Additionally, Delta undertook to pay LATAM's exit fee from Oneworld and to take delivery of all Airbus A350 XWB aircraft that LATAM had on order. On 1 January 2020, it was reported that Delta Air Lines' acquisition of the 20% stake in LATAM group was completed. Group CEO Enrique Cueto stepped down on 31 March 2020, and was succeeded by Roberto Alvo, the group's then-current Chief Commercial Officer. On 31 January 2020, LATAM announced that it would leave Oneworld three months later on 1 May.


2020: COVID-19 related bankruptcy

On 26 May 2020, LATAM filed for
Chapter 11 Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
bankruptcy in the United States due to economic problems attributed to the
impact of the COVID-19 pandemic on aviation The COVID-19 pandemic has had a significant impact on the airline industry due to travel restrictions and a decimation in demand among travelers. Significant reductions in passenger numbers have resulted in flights being cancelled or planes ...
, although they are currently operating and have been negotiating terms. In August, the company announced its second-quarter results, projecting improved operational prospects. To assist with the COVID-19 pandemic in Peru, the company announced that its subsidiary LATAM Perú would help distribute vaccines to fifteen provinces in Peru for free.


Corporate affairs


Ownership

The company's shareholders, as of March 2021, are:


Operations

As of 31 December 2017, LATAM Airlines Group is one of the largest airline groups in the world in terms of network connections, with its subsidiaries operating a combined fleet of 315 aircraft providing passenger transport services to 137 destinations in 24 countries; and 18 aircraft providing cargo services to 144 destinations in 29 countries. LATAM's main hubs are Santiago de Chile's Comodoro Arturo Merino Benítez International Airport;
Jorge Chávez International Airport Jorge Chávez International Airport (Aeropuerto Internacional Jorge Chávez) is Peru's main international and domestic airport. It is located in Callao, northwest from Lima Center, the nation's capital city and from the district of Miraf ...
in Lima; São Paulo–Guarulhos International Airport; and
El Dorado International Airport El Dorado International Airport is an international airport serving Bogotá, Colombia and its surrounding areas. The airport is located mostly in the Fontibón district of Bogotá, although it partially extends into the Engativá district and ...
in Bogotá. The company is exploring the creation of a new hub in northeastern Brazil with the objective of expanding operations between Europe and South America. Bogotá is the hub for the Caribbean. LATAM Airlines Argentina has announced that it will cease domestic cargo operations for an indefinite period.


Subsidiary airlines


Current

The airlines majority- and minority-owned by LATAM Airlines Group through the primary airlines' various subsidiaries are as follows:


Former


Fleet

As of December 2022, LATAM Airlines Group owns and operates the following aircraft:


See also

* List of airline holding companies


References


External links


LATAM Airlines
{{DEFAULTSORT:Latam Airlines Group Airline holding companies Airlines of Brazil Airlines of Chile Companies based in Santiago Companies that filed for Chapter 11 bankruptcy in 2020 Holding companies established in 2012 Holding companies of Chile Holding companies of Brazil Companies listed on the Santiago Stock Exchange Companies listed on B3 (stock exchange) Companies formerly listed on the New York Stock Exchange Companies traded over-the-counter in the United States Latin American and Caribbean Air Transport Association Multinational companies headquartered in Chile TAM Airlines LAN Airlines Brazilian companies established in 2012 Chilean companies established in 2012