Brazilian airline Azul SA has approached Chile’s bankrupt LATAM Airlines Group with the aim of buying its Brazilian operation, Reuters reported. Azul’s shares rose more than 9% in Sao Paulo on the news, while LATAM’s shares in Santiago, where the airline is listed, were down 20%. LATAM filed for bankruptcy protection a year ago and, while it has secured new liquidity in that process, it has yet to present a formal restructuring plan.
As LATAM Airlines Group reshuffles its operations and cleans up its financial situation as a part of its chapter 11 bankruptcy process, the group’s branches continue their streamlining and cost-cutting measures. The latest agreement — and one of the most relevant with respect to labour relations so far — was announced this week at LATAM Brasil. In an internal announcement, the company announced it would be outsourcing its ground agent jobs at almost all Brazilian airports.
Brazilian bus company Itapemirim is launching a new airline in June, betting it can dodge the financial ruin that has grounded many rival carriers even though the land transport company just spent five years reorganizing under bankruptcy protection, Reuters reported. The carrier expects to have a fleet of 50 Airbus A320 planes by next year, all painted in Itapemirim’s signature bright yellow color, trying to beat the odds that have led 11 airlines to fail in Brazil so far this century.