Latin American Economy & Business Report

06/2020 - Airlines try to fly out of trouble

The coronavirus (Covid-19) pandemic, and resultant quarantine measures and travel bans, has hit Latin America’s airlines particularly hard. This emerging crisis in Latin American air travel has been highlighted by three separate events taking place within the space of a month. On 28 April US aircraft company, Boeing, pulled out of a long-negotiated US$4.2bn deal to buy the civil aviation business of Brazilian aerospace manufacturer Embraer. Then, on 10 May, Colombia-based Avianca, Latin America’s second largest airline, filed for Chapter 11 bankruptcy in a US court. This was followed on 28 May by a similar filing from Latam Airlines Group, the largest Latin American passenger carrier.

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