Left Menu
Development News Edition

Latam carriers see 'bankruptcy pandemic' risk, Chile opposes bailout

Reuters | Updated: 18-03-2020 03:33 IST | Created: 18-03-2020 03:33 IST
Latam carriers see 'bankruptcy pandemic' risk, Chile opposes bailout

Latin American airlines need prompt government aid or many of them could go out of business as the global coronavirus outbreak forces widespread flight cancellations, the chief of regional airline association ALTA said on Tuesday. However, Chile's economy minister dismissed the idea of providing aid to the country's flagship carrier, the largest in the continent.

ALTA Chief Executive Luis Felipe de Oliveira has been sending letters to governments throughout the region about the "unprecedented" coronavirus crisis, he said in a phone interview, adding to the global pressure from airlines seeking bailouts. "If the governments do not take drastic and immediate action there could be a bankruptcy pandemic in the region," he said.

In the United States, where airlines are much more profitable than in Latin America, carriers are pushing for a $50 billion aid package. Brazil's government has signaled empathy toward the industry, but did not issue a lifeline that airlines had expected on Monday.

A spokesman for Brazil's Infrastructure Ministry said details of the aid for airlines were still being worked out on Tuesday. Chile, home to LATAM Airlines Group, on Tuesday brushed off incoming LATAM CEO Roberto Alvo's comments that airlines worldwide will need government help.

"I have heard through social media ... that the airline LATAM was asking for government aid," Economy Minister Lucas Palacio said, according to local outlet Emol. "I want to be super clear about this," he said. "We are prioritizing people, and I think it's rushed. I think it's wishful thinking, for one company to be asking something of that nature."

LATAM is appealing to governments, the carrier said on Monday, without elaborating. "We're in conversations with the governments where we operate to evaluate how we can confront this crisis." De Oliveira said the stakes were high and more than 50% of flights in Latin America could be canceled.

LATAM has already said it would cancel 90% of its international flights. Brazil's largest airline, Gol Linhas Aereas Inteligentes , said on Tuesday it would cancel all international flights starting next week through the end of June, a day after announcing cancellations of up to 95%.


TRENDING

OPINION / BLOG / INTERVIEW

Tracking Cybersecurity: Laying the groundwork for tougher regulations post-COVID 19

The changes indicate that the tech industry is moving towards a paradigm shift over how it operates and, more importantly, how it is regulated....

Tax dodging in rich and poor countries alike, wealthy taxpayers often outwit the taxman

... ...

COVID-19 threatens to widen the digital gender divide

In a world that, all of sudden, has turned virtual, it has become absolutely essential to providing equal digital access and opportunities to the unconnected population, primarily dominated by women. ...

Gender Equality Post-COVID-19: Rising inequalities ask for gender-sensitive policies

However, the death rate of women due to COVID 19 infection is less than men, the repercussions of worldwide lockdown have adversely affected women across communities and economic sectors throughout the globe. The experts fear that the pande...

Videos

Latest News

Cop suspended after he crushed vegetables with his jeep in UP's Prayagraj

A Police Sub Inspector Sumit Anand has been suspended and departmental action is being taken against him after he crushed vegetables of sellers with his jeep, at a bi-weekly market here in Ghoorpur, when they did not comply with his order o...

Tourism Minister's 'Mission 30 per cent Commission' finished Tourism Business in Goa: Vithu Morajkar

Congress spokesperson Vithu Morajkar attacked Goa Tourism Minister Manohar Babu Ajagonkar said that the Mission 30 per cent Commission of the most corrupt tourism minister has resulted in complete downfall of tourism business in State. Whil...

G20 pledges more than $21 bln to fight coronavirus

The Group of 20 rich and emerging economies has pledged more than 21 billion to fight the coronavirus, the group said early on Saturday.The G20, with invited countries, has coordinated the global efforts to support the fight against the COV...

'We were wrong': NFL commissioner regrets stance on player protests, condemns racism

National Football League NFL Commissioner Roger Goodell said the league made mistakes in not listening to players, in a video on Friday denouncing racism in the United States amid widespread protests over police brutality against black peop...

Give Feedback