LATAM files for Chapter 11 bankrupcy

Old May 25, 20, 10:40 pm
  #1  
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LATAM files for Chapter 11 bankrupcy

https://www.bloomberg.com/news/artic...d-by-lockdowns
Passmethesickbag is offline  
Old May 25, 20, 11:12 pm
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Sad but somewhat expected given the current status of affairs, specially since the Chilean government wasn't willing to give them a bailout. Harsh for the employees too, since they have been enduring a 50% cut in their paychecks and a lot of uncertainty with a couple of waves of layoffs.

Interestingly Argentina, the lowest performer, is not among the countries in this filling. Also I wonder if this is going to change the milestones set for the joint venture with Delta.

As Avianca also filed for bankruptcy, anything can happen in the LatAm industry now. Is Copa going to stay strong in this crisis and stay as the leader in the region? Or maybe the low-cost carriers like Sky and Jetsmart are going to get a bigger share?
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Old May 26, 20, 12:10 am
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Originally Posted by Semphyra View Post
Sad but somewhat expected given the current status of affairs, specially since the Chilean government wasn't willing to give them a bailout. Harsh for the employees too, since they have been enduring a 50% cut in their paychecks and a lot of uncertainty with a couple of waves of layoffs.

Interestingly Argentina, the lowest performer, is not among the countries in this filling. Also I wonder if this is going to change the milestones set for the joint venture with Delta.

As Avianca also filed for bankruptcy, anything can happen in the LatAm industry now. Is Copa going to stay strong in this crisis and stay as the leader in the region? Or maybe the low-cost carriers like Sky and Jetsmart are going to get a bigger share?
Considering how poorly they handled things I am not sad. Agents had no empathy, had no motive to work to help get us home. Flat out told us your on your own its not our problem. (in spanish too it's not like there was any sort of language barrier) They are a disgrace! At least Avianca got people home without outrageous fares it was something like $150 to change flights no fare difference asked. If it was a staple across LATAM I would've understood but COPA and AVIANCA stood by their customers.

It costed me $5,600 (2,000 for a flight to Colombia that never went and am still trying to get a refund for from LATAM and $3,600 which cost us to go from LIM-PUJ-EWR to get back to the US) out of pocket to get home and I've yet to see a dollar from LATAM in terms of a refund for my original flight ($2300 for 2) which was cancelled. They wanted to the TUNE of $6,000 PER PERSON to change our tickets from LIM-GYE-JFK to just LIM-JFK. What happened to OW getting you home? honoring agreements?

I hope they lose everything. The only thing I regret is not shorting the stock. ( i didn't think they were in as much trouble as they were) They took or tried to take advantage of us, I would've LOVED to return the favor. I give people the UTMOST respect but when you screw me believe me it's not going to be pretty.

The good workers will find new jobs with other airlines that rise out of the ashes but LATAM's management needs to learn a hard lesson I have no heart for them AT all... I wish Avianca and COPA well. SKY Chile also seems to be gaining serious ground in South America.

Last edited by theboss7593; May 26, 20 at 12:21 am
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Old May 26, 20, 3:46 pm
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I am currently waiting for a Travel
voucher to be changed into cash.

Does this mean that if they do go bankrupt, that I won’t see my money again?
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Old May 26, 20, 6:52 pm
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Originally Posted by watsonville View Post
I am currently waiting for a Travel
voucher to be changed into cash.

Does this mean that if they do go bankrupt, that I won’t see my money again?
You would normally be lumped into the non-secured creditor group.

That is the same group as equity (stock) holders. This group is at the bottom of the barrel when money is allotted to pay off creditors.

So, a simple answer to your question is....no, highly unlikely that you will see any of your money.
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Old May 27, 20, 1:37 am
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Originally Posted by radonc1 View Post
You would normally be lumped into the non-secured creditor group.

That is the same group as equity (stock) holders. This group is at the bottom of the barrel when money is allotted to pay off creditors.

So, a simple answer to your question is....no, highly unlikely that you will see any of your money.
That's what I feared - also waiting for a voucher exchange (demanded cash on May 3).
One question: this was for a fully flexible fare for a flight within Brazil, which I cancelled.
Since the entity in Brazil is excluded from the bankruptcy filing, would that mean that there is a chance to get the money ? Or are tickets / reimbursements done centrally?
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Old May 28, 20, 11:37 am
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I genuinely feel for the staff, but LATAM have done little to make themselves popular in the last few years.

The service on domestic flights (well shorthaul flights generally) is atrocious. Last year a simple request for a glass of water on a SCL - MDZ flight was met with a scowl, and while in business they have done some plane refurbishments, I still find their product (both service and hard product) inferior to the majority of their competitors.
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Old May 28, 20, 3:29 pm
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I had two domestic flights scheduled for June and July. I requested the cancellation on April 11. They said voucher was for the full amount because they had changed the flights. As it winds up, the flights have been cancelled, per an email they sent me this week. This morning, my voucher arrived for 9 dollars. Flight was either 75 dollars or 120 dollars, which you cannot deduce which ticket the voucher is even being applied to. Expect to be screwed.
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Old May 29, 20, 9:35 am
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Originally Posted by theboss7593 View Post
Considering how poorly they handled things I am not sad. Agents had no empathy, had no motive to work to help get us home. Flat out told us your on your own its not our problem. (in spanish too it's not like there was any sort of language barrier) They are a disgrace! At least Avianca got people home without outrageous fares it was something like $150 to change flights no fare difference asked. If it was a staple across LATAM I would've understood but COPA and AVIANCA stood by their customers.

It costed me $5,600 (2,000 for a flight to Colombia that never went and am still trying to get a refund for from LATAM and $3,600 which cost us to go from LIM-PUJ-EWR to get back to the US) out of pocket to get home and I've yet to see a dollar from LATAM in terms of a refund for my original flight ($2300 for 2) which was cancelled. They wanted to the TUNE of $6,000 PER PERSON to change our tickets from LIM-GYE-JFK to just LIM-JFK. What happened to OW getting you home? honoring agreements?

I hope they lose everything. The only thing I regret is not shorting the stock. ( i didn't think they were in as much trouble as they were) They took or tried to take advantage of us, I would've LOVED to return the favor. I give people the UTMOST respect but when you screw me believe me it's not going to be pretty.

The good workers will find new jobs with other airlines that rise out of the ashes but LATAM's management needs to learn a hard lesson I have no heart for them AT all... I wish Avianca and COPA well. SKY Chile also seems to be gaining serious ground in South America.
wow, what a story. the only thing i hope for is for them to stay afloat, only because my wife and I enjoyed the lie flat seats, direct from jfk-gye...jetblue is not lie flat, and AA I hate to have to connect via Miami..

when was this that you were trying to get home? in march and april when things were at their worst?

I understand your situation though about wanting them to fall apart....
michael1023 is offline  

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