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LATAM Airlines Group files for Chapter 11 reorganization

LATAM Airlines Group S.A. has made this announcement:

LATAM Airlines Group S.A. and its affiliates in Chile, Peru, Colombia, Ecuador and the United States today (May 26) initiated a voluntary reorganization and restructuring of their debt under Chapter 11 protection in the United States with the support of the Cueto and Amaro families and Qatar Airways, two of the largest shareholders of LATAM.

In light of the effects of COVID-19 on the worldwide aviation industry, this reorganization process provides LATAM with an opportunity to work with the group’s creditors and other stakeholders to reduce its debt, access new sources of financing and continue operating, while enabling the group to transform its business to this new reality.

The Chapter 11 financial reorganization process is a proven legal framework under which LATAM and said affiliates will have the opportunity to resize their operations to the new demand environment and reorganize their balance sheets, enabling them to emerge more agile, resilient and sustainable. LATAM and its affiliates will continue flying as conditions permit throughout the process.

“LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future,” said Roberto Alvo, Chief Executive Officer of LATAM. “We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group. We are looking ahead to a post-COVID-19 future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of ourpassengers and employees being paramount.”

The group has secured the financial support of shareholders, including the Cueto and Amaro families, which have lasting ties to LATAM, and Qatar Airways, to provide up to $900 million in debtor-in-possession (DIP) financing. These partners have a profound understanding of the industry, the group and its operational challenges. Their support demonstrates a belief in LATAM and its affiliates and their long-term sustainability. To the extent permitted by law, the group would welcome other shareholders interested in participating in this process to provide additional financing. In addition, as of the filing, the group had approximately USD $1.3 billion in cash on hand.

LATAM and its affiliates are also in discussions with their respective governments of Chile, Brazil, Colombia and Peru to assist in sourcing additional financing, protect jobs where possible and minimize disruption to its operations. LATAM and its affiliates would like to thank its shareholders, employees, creditors and the communities it serves for their support to help secure the group’s long-term future. The group is confident that this process will bring together these diverse stakeholders to build a new LATAM that is better placed to succeed for years to come.

“Faced with the biggest crisis in the history of aviation, the Board has approved this path forward having analyzed all the available alternatives to ensure the sustainability of the group. As we have adapted to new realities in the past, we are confident that LATAM will be able to succeed in the post-COVID-19 context and continue to serve Latin America, connecting the region with the world,” said Ignacio Cueto, Chairman of LATAM’s Board of Directors.

The group is continuing to adapt and respond to the COVID-19 pandemic and is actively preparing to welcome customers back once travel prohibitions are lifted and demand increases, guaranteeing the highest safety standards for passengers and crew for which LATAM is highly recognized.

Continuing to serve Latin America

LATAM group is committed to preserving business continuity as it reorganizes – especially with respect to employees, customers, suppliers, commercial partners and local communities.

LATAM Airlines Group S.A. and its affiliates will continue to operate passenger and cargo flights, subject to demand and travel restrictions.
All current and future tickets, travel vouchers and frequent flyer miles and benefits, as well as flexibility policies, will be honored.
The group’s employees will continue to be paid and receive benefits as provided in their employment agreements.
Suppliers will be paid in a timely fashion for goods and services delivered from May 26, 2020 forward and throughout this process.
Travel agencies and other commercial partners will experience no disruption in their interactions with the LATAM group.

The right option to strengthen the group

The LATAM group has shared its journey with the people of Latin America, thriving in times of growth and pulling together to overcome times of adversity, and like many, LATAM and its affiliates began 2020 with hopes of progress that COVID-19 has brought to a virtual standstill. In 2019, the group launched 26 new routes and transported a record 74 million passengers, 5.4 million more than in 2018. The group’s plans for 2020 included further enhancing its passenger experience through cabin transformations and strengthening its strategic partnerships to further connect Latin America with the world. While the group will change through the Chapter 11 process, its culture, commitment to customers, shared history and Latin American identity will not.

After careful consideration, LATAM is confident that the Chapter 11 reorganization process is the best path forward to achieve the group’s objectives and meet its obligations while comprehensively managing its fleet and addressing its debts, most of which are held in the United States. Importantly, this process is markedly different from the concept of “quiebra“, “bancarrota“, or liquidation. LATAM intends to rely on specific relief that will allow it to pay its employees, meet benefit obligations, pay critical suppliers and conduct other day-to-day business operations as the group works with the court and creditors to resolve its case. With Chapter 11 protection, the group’s management team will remain in place and will continue to lead LATAM through the reorganization and transformation process.

These unique provisions of the Chapter 11 reorganization process will enable the group to minimize disruptions to the business and protect the interests of stakeholders while it restructures its balance sheet to emerge as a more agile, resilient and sustainable airline group.

While most of LATAM’s affiliates are included in the reorganization process, several entities are not, due to the nature of their debt structure and current financial status. A full list of filing entities is available at cases.primeclerk.com/LATAM. The list below summarizes the inclusion of these entities in the Chapter 11 financial reorganization and other proceedings.

Material filing entities:

Chile: LATAM Airlines Group S.A. and certain other entities incorporated in Chile are included in the Chapter 11 filing and will also file recognition proceedings in Chilean Courts in order to ensure that the Chapter 11 process is given full credit and effect, providing even greater protection to LATAM’s businesses.
Colombia: LATAM Airlines Colombia and other entities incorporated in Colombia are included in the Chapter 11 filing and will also file recognition proceedings in the Superintendencia de Sociedades in order to ensure that the Chapter 11 process is given full credit and effect, providing even greater protection to LATAM’s businesses.
Peru: LATAM Airlines Perú and other entities incorporated in Peru are included in the Chapter 11 filing and are also filing a “Preventative Reorganization Process” with INDECOPI in order to ensure to these businesses are further protected from adverse actions of creditors.
Ecuador: LATAM Airlines Ecuador is included in the Chapter 11 filing.
United States: All of the group’s operating entities, other than special purpose vehicles, in the United States are included in the Chapter 11 filing.

Non-filing entities

Argentina, Brazil and Paraguay: LATAM’s affiliates in Argentina, Brazil and Paraguay are not included in the Chapter 11 filing. LATAM’s affiliates in Brazil are in discussions with the Brazilian government about the next steps and financial support for their Brazilian operations.

Importantly, whether included in the filing or not, all of the companies in the group will continue to operate as travel restrictions and demand permit.

Additional Information

LATAM Airlines Group and its affiliates understand that their employees around the world, their families, their suppliers and customers will have many questions. While LATAM may not have all the answers at this point, the group will be guided by transparency in all its interactions.

Previously the group made this announcement about the upcoming schedule:

LATAM Airlines Group and its affiliates, Latin America’s leading airline group with one of the largest route networks in the world, announced today it will gradually increase its international and domestic operations during June and July, offering passengers more flexible options, lower fares and increased sanitation measures.

In June the LATAM group expects to increase its total pre-crisis capacity from 5% to 9%, while preparing to reach 18% in July. The LATAM group understands that decision-making in these uncertain times is complex, reason why it is granting passengers greater flexibility to purchase and schedule trips with rates that on average can be up to 20% less expensive. Additional sanitation measures will also being implemented on all flights.

“With these measures, the LATAM group is responding to the connectivity needs of the countries where it operates and adapting its offerings to the requirements of customers in this complex scenario,” said Michael Rutter, Senior Commercial Vice President of LATAM Airlines Group. “The group is increasing flights, destinations and frequencies, and taking concrete measures that respond to the new economic reality that clients and their families are facing. Those measures include more accessible and flexible flight options, new sanitation measures and customer assistance services for passengers during their trips.”

During June, LATAM Airlines Brazil will operate four international routes from São Paulo to Frankfurt, London, Madrid and Miami, while LATAM Airlines Group will operate from Santiago, Chile to Miami and São Paulo, a connection center through which customers can access these three destinations in Europe. By July, the LATAM group intends to increase international destinations to 13.

Domestically, LATAM Airlines Brazil will operate 74 routes, while LATAM Airlines Chile will reach 12 destinations that include La Serena, Copiapó, Temuco and Easter Island. Similarly, the affiliate in Ecuador is working to resume their domestic flights in June, with the Colombian and Peruvian affiliates expecting to reestablish their service in July, as permitted by local authorities.

MORE AFFORDABLE FARES

Given the new economic environment, the LATAM group further reduced costs and increased efficiency in order to offer tickets that on average can be up to 20% more affordable.

FLEXIBILITY TO TRAVEL

Given the uncertainty caused by the current health crisis, passengers will have more flexibility to buy tickets and schedule their trips, subject to applicable local regulations.

Until July 31, 2020, passengers can voluntarily reschedule their tickets on Latam.com before the departure of their flight. The first change will be without penalty or fare change (same destination, subject to cabin availability and validity of the ticket). The destination can change subject to a fare differential, if applicable.

If the passenger is not certain of the date of travel, they can leave their ticket open for 12 months, as long as they notify the airline through their website at least 7 days in advance. (My Trips section of LATAM.com)

In the event that a flight is canceled or rescheduled, passengers may reschedule their tickets without penalty or fare difference (subject to cabin availability, same destination and validity of the ticket). If they wish to change their destination, a rate difference will apply if one exists.

ASSISTANCE DURING YOUR TRIP

This new platform on the LATAM website contains detailed information on the chosen destination and provides travel solutions for passengers, who will also be able to connect with third-party providers on passenger responsibilities of securing entry, exit and any re-entry criteria for the destination they are visiting.

GLOBAL CATEGORY CLEANING STANDARDS

LATAM Airlines Group and its affiliates have adopted the best sanitation practices in the world, following the recommendations of the WHO and the industry.

The measures:

During check in:

Attention to the passenger

The cleaning and disinfection of the passenger service area increased, including counters and all self-service kiosks.

Self-service terminals

The LATAM group has self-service kiosks at all the airports where it operates, guaranteeing an autonomous service without face-to-face counters.

Use of mandatory masks

From the moment of arrival at check-in and while boarding, as well as during flight and disembarkation, the use of masks will be mandatory for all passengers. This measure extends to cabin crew in all phases of the flight.

On board:

Continuous sanitation
- Proactive disinfection procedures in all aircraft after each arrival on all flights and of the entire cabin with quaternary ammonium spray and additional manual cleaning.
- Alcohol gel available onboard all aircraft.
- Cleaning of frequent passenger contact points (e.g., handles, toilets, armrests, belts, screens, light and call switches, seat pockets, windows and trays) during all phases of flight.

Air Filtration
- All of the L group’s fleet has air recirculation systems that renews the air every 3 minutes with HEPA (High Efficiency Particulate Air) filters, removing 99.97% of the particles.

More space on board
- Boarding will include social distancing requirements between passengers, avoiding crowds. Front restrooms will remain for the exclusive use of the crew, to minimize contact with passengers.

Blankets and Beds
- All blankets, downs, and pillows are laundered after each flight. In the case of pillows, they can also be discarded depending on the material.

LATAM Airlines (Chile) aircraft photo gallery:

Delta and LATAM accelerate their partnership with a loyalty agreement, launch of first codeshare flights

Delta Air Lines has made this announcement:

Delta frequent flyers benefit from reciprocal mileage earn and redemption for flights flown on/after April 1
Delta code now added on flights operated by LATAM’s affiliates in Colombia, Ecuador and Peru, giving customers more travel options
Additional codeshare agreement reached for flights operated by LATAM Airlines Brazil
Delta to co-locate at LATAM’s São Paulo/GRU hub

Delta and LATAM Airlines Group have reached agreement to launch frequent flyer reciprocity across the carriers’ broad networks, offering customer benefits across more than 435 destinations worldwide. Additionally, the carriers continue to expand codesharing across more flights throughout the region, adding expanded connectivity for customers.

Frequent flyer benefits, including reciprocal mileage earn and redemption, will be effective for Delta SkyMiles Members traveling on LATAM flights on or after April 1, 2020. Reciprocal mileage earn and redemption will be applicable for all flights in the Delta and LATAM networks. Elite reciprocal benefits, including lounge access and priority boarding, bags and seats are expected to launch later in 2020.

Carriers continue to expand codesharing

Additionally, the carriers continue to expand codesharing across their networks. As a next step, the airline groups have reached agreement to launch codesharing between Delta and LATAM’s affiliate in Brazil beginning in the first half of 2020, subject to governmental and regulatory approvals. The agreement will create improved opportunities for customers to connect on up to 65 routes throughout Delta’s U.S. and Canada network and up to 37 LATAM routes in Brazil.

Codesharing has now launched between Delta and LATAM’s affiliates in Colombia, Ecuador and Peru. When fully implemented, these codesharing agreements would provide customers increased connectivity on up to 74 onward routes in the United States and up to 51 onward routes in South America. Codesharing for flights operated by LATAM’s Colombia and Ecuador affiliates are visible on delta.com for flights effective now, and codesharing for Peru is effective for flights beginning March 29, 2020, pending final Peruvian government approval.

Additionally, select interline routings connecting Delta and LATAM flights are now available for booking on direct Delta channels, including delta.com.

Co-location, complementary networks expand options and convenience

Delta will co-locate its operations with LATAM in São Paulo–Guarulhos International Airport Terminal 3 on March 29, 2020, to facilitate swifter connections for customers. In New York-JFK, LATAM has already relocated its operations to Terminal 4, improving the connecting experience for customers traveling onward on Delta flights.

Delta has also announced plans to broaden its footprint in south Florida with 13 new daily nonstop flights* to Miami International Airport (MIA) from hubs and top corporate travel destinations around the U.S., including new service from Orlando, Raleigh-Durham, Salt Lake City and Tampa. Delta’s new flight schedule will be timed to maximize connectivity with LATAM. The two airlines are already conveniently co-located at MIA, allowing swift connecting times for customers.

In September 2019, Delta and LATAM announced an agreement that would bring together the leading airlines in North and South America. In December 2019, Delta announced the completion of its previously announced tender offer to acquire a 20 percent equity stake in LATAM, an investment that continues Delta’s strategy of making equity investments in key airline partners around the globe. When fully implemented, the Delta and LATAM partnership will hold the leading position in five of the top six South American markets from the U.S.

* The new flights are now available for sale and will operate beginning May 4, 2020 (MIA-MCO and MIA-TPA); May 22, 2020 (RDU-MIA); July 28, 2020 (SLC-MIA);

Delta, LATAM to launch codesharing as carriers build leading partnership in Latin America

Delta Air Lines and LATAM Airlines will launch codesharing for flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru beginning in the first quarter of 2020, pending receipt of applicable government approvals.

The codeshare will offer customers increased connectivity between up to 74 onward destinations in the United States and up to 51 onward destinations in South America.

Delta expects to expand codeshare opportunities to include more destinations in the near future. The airlines are also working toward introducing frequent flyer program reciprocity and reciprocal lounge access.

In September, Delta and LATAM announced an agreement that would bring together the leading airlines in North and South America, which once fully implemented will offer significantly expanded travel options for customers with access to 435 destinations worldwide. The enhanced cooperation is subject to governmental and regulatory approvals.

LATAM also made this announcement:

LATAM Airlines Group has announced that its affiliates LATAM Airlines Peru, LATAM Airlines Colombia and LATAM Airlines Ecuador have signed codeshare agreements with Delta to provide greater connectivity with the United States starting the first quarter of 2020, subject to applicable regulatory approval.

The new codeshares follow the announcement of LATAM’s and Delta’s framework agreement on September 26, 2019, which will combine the carriers’ highly complementary route networks to provide customers with a seamless travel experience and greater connectivity to destinations worldwide.

The carriers are working to provide a smooth transition through the strengthening of their existing interline agreement, establishing reciprocal lounge access and mutual frequent flyer benefits as well as developing bilateral codeshare agreements.

The three codeshare agreements signed with Delta today (December 2, 2019) will offer LATAM customers the possibility to connect to up to 74 onward destinations in the United States and Canada and will open up to 51 onward destinations for Delta passengers in South America*. Starting the first quarter of 2020:

LATAM Airlines Peru’s ‘LA’ code will be added to Delta flights from New York/JFK, Miami, Los Angeles and Orlando to up to 74 onward destinations in the United States and Canada. Likewise, Delta’s ‘DL’ code will be added to LATAM Airlines Peru flights between Lima and up to 34 onward destinations in Peru and South America.
Delta’s ‘DL’ code will be added to LATAM Airlines Colombia flights from Bogota and Cartagena to up to 13 onward destinations in Colombia.
LATAM Airlines Ecuador’s ‘LA’ code will be added to Delta flights between New York/JFK and up to 55 onward destinations in the US and Canada. Similarly, Delta’s ‘DL’ code will be added to LATAM Airlines Ecuador flights between Quito and up to four onward destinations in Ecuador.

LATAM also plans to establish codeshare agreements between Delta and its affiliates in Chile and Brazil in 2020*, offering even greater connectivity between South America and the U.S.

End of codeshare agreements with American Airlines

LATAM will formally end all its codeshare agreements with American Airlines on January 31, 2020. Customers who have purchased American Airlines flights via LATAM prior to this date for flights from February 1, 2020 onwards will be entitled to the same services, with no change to flight or ticket conditions.

LATAM’s frequent flyer and reciprocal lounge access agreements with American Airlines will remain in place until LATAM leaves oneworld.

oneworld departure

LATAM advised oneworld and its alliance partners in September 2019 that it would leave oneworld within one year, in line with the standard notice period. The company is evaluating an earlier departure date with any change to be communicated in due course.

Following LATAM’s departure from oneworld, it will maintain its bilateral agreements with the majority of the alliance members.

Background on the framework agreement announced on September 26, 2019:
• Delta will invest USD$1.9 billion for a 20% stake in LATAM through a public tender offer at USD$16 per share. The tender offer was launched on November 27, 2019 and will last 30 days.
• Delta will also invest USD$350 million to support the establishment of the strategic alliance contemplated in the framework agreement.
• Delta will acquire four Airbus A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered between 2020 and 2025.
• Delta will be represented on LATAM’s Board of Directors.
• The strategic alliance is subject to all required governmental and regulatory approvals.

*Subject to applicable regulatory approval.

Delta’s routes to Latin America:

LAN and TAM to operate as LATAM with a new livery

LAN Airlines (Santiago) and TAM Linhas Aereas (Sao Paulo) (LATAM Airlines Group) have just announced it will move towards one brand – LATAM. The makeover will involve a new livery for both airlines.

The airline announced this new look with the video above and these short statements:

TAM and LAN built a story in common and left behind a legacy. Both succeeded in their markets and opened themselves to the world, bringing developments to the whole region. For years, they were recognised for their punctuality, services, and network. This allowed us to gain our customers’ preference and to take part in their stories.

Now, we begin together a whole new chapter, which starts off with a brand that will take our best to the entire world. Our new identity represents the strength of a region that never stops moving, a pioneer and contemporary spirit, which inspires us to take Latin America to the world and to bring the world to Latin America.

The group describes the new logo above:

Our symbol adopts an ascendant form, which represents our strength, dynamics, and will to always go further. It takes shape through the harmony between different elements, since we were born exactly from the beauty of diversity.

On the colors:

Our colours, Indigo and Coral, represent our complementary and unique way of being: elegant on the outside, warm on the inside. Our secondary colours contribute to making our expression more diverse, without falling into stereotypes, and symbolising a region that is born from and that stands out for its rich diversity.

More news from our South American partner ModoCharlie:

“LATAM Airlines Group presents today LATAM, the new brand under which the main airline group in South America will progressively move on to become a single airline in the near future. Its website will be, properly named Latam.com

The announcement and its implementation plan are presented after being postponed several times since the last quarter of 2014. Such postponings fed industry expectations and helped spread rumors on what the new airline name and corporate image would be. Months ago, a semi-official statement was made public to reveal that the unified name would be a new one, thus discarding both LAN and TAM. Rumors on what the final choice would be snowballed ever since.

The announcement, which was not expected until the end of 2015 or the first quarter of 2016, does not produce many immediate effects aside of the public availability of an informational website hosted under the new airline name’s domain name, which should become in the future the transactional website for the unified airline. The first unified experiences for passengers are expected on April 2016, with the presentation of the first aircraft with the new paint schemes, names and logos.”

Read more on ModoCharlie: CLICK HERE

Later the group issued this statement:

The new brand represents the creation of the largest airline group in Latin America and one of the largest in the world.
“Connecting LATAM to the world, and bringing the world to LATAM. The airline group has grown up alongside each country in the region and has consolidated to offer clients the best network of connections and most modern fleet in Latin America. The passenger experience will improve with access to a single product and service within one network, more powerful online presence and integrated channels of communication, in addition to faster development of innovation and technology in the countries where the Group operates. LATAM will be a brand that builds a culture that is dedicated to taking care of its clients,” said Enrique Cueto , CEO of LATAM Airlines Group.
The choice of the name LATAM, part of the consolidation of LAN and TAM, is the result of an extensive study conducted in 10 countries following the association of both airlines and their affiliates.
LATAM Airlines Group is currently working on the gradual roll-out of the new corporate brand image over the next three years for airports, aircraft, commercial offices, web pages, and uniforms. The first changes will be visible starting in the first half of 2016 with specific dates to be announced in a timely manner.

After an extensive integration process following the association of LAN Airlines and TAM Airlines – during which the Group made great advances in achieving synergies for internal processes, network optimization, and fleet restructuring and modernization – LATAM Airlines Group has decided to adopt a single name and identity and announces that the new brand for the largest airline group in Latin America and its affiliates will be LATAM. The new LATAM branded airline group will unite all the passenger and cargo airlines for LATAM Airlines Group: LAN Airlines and its affiliates in Peru , Argentina , Colombia and Ecuador ; in addition to TAM Linhas Aereas S.A., and its subsidiary TAM Air Transport Mercosur S.A. (TAM Airlines ( Paraguay ), and the cargo carriers comprised of LAN CARGO , LAN CARGO Colombia, ABSA (TAM Cargo) and Mas Air.

The decision to create a new brand is a historic milestone in the airline industry not only because this is the first time an airline group has chosen to consolidate under a single brand, but because this is the first time a Latin America based airline group aspires to become one of the best in the world.

For that reason, the new brand will incorporate the most valued strengths and characteristics of both LAN and TAM, in addition to the important histories of both carriers, 86 and 39 years respectively, during which they became part of the history of the region by contributing to its growth, development and increased connectivity.

“Out of all of the options that we were considering, the name LATAM always seemed to us to be the most natural evolution of both the LAN and TAM brands, but a period of mutual understanding and maturation was necessary to make the decision. We knew that having a single brand was essential to consolidate the connection between LAN and TAM, and the name LATAM creates a strong identity for the airlines that form the largest airline group in Latin America. The new brand is born from the desire to capture the best of both identities and legacies and consolidate them to create an even stronger one that preserves the essence of each brand – an essence that is truly Latin American,” said Mauricio Amaro , President of the Board of Directors, LATAM Airlines Group.

“With LATAM we will continue on the path of leadership that LAN and TAM started in parallel, working closely together over the past three years to implement an ambitious agenda of innovative projects for our passengers to have a better experience with us before, during and after their flight. The passenger experience will improve with access to a single product and service within one network, more powerful online presence and integrated channels of communication, in addition to faster development of innovation and technology in the countries where the Group operates. LATAM will increase optimization of our fleet, provide easier access for passengers and clients to the best network of destinations in the region while offering a new in-flight experience, updates in service and in-flight entertainment, and innovative technology that gives passengers more control over their travel experience. Our passengers have high expectations and we want to offer them service that meets those expectations. LATAM will be a brand that builds a culture that is dedicated to taking care of its clients,” said Enrique Cueto , CEO of LATAM Airlines Group.

Cueto went on to explain in his own words the choice of the name LATAM: “LATAM Airlines Group was created by two large Latin American companies that started from zero and prospered thanks to their shared passion for flying, vision, dedication and innovation. Both companies and their respective affiliates conquered their markets and connected them with the world, promoting prosperity in the region and becoming known for their on-time performance, service and networks that won them the preference of their clients and become a part of their history. LATAM Airlines Group created a unique partnership in the industry that resulted in the largest airline group in the region. That is why we chose the name LATAM, because it honors who we were and who we want to continue to be, working together with our affiliates to be the ambassadors of a Latin America that grows and prospers, loyal to its natural and human roots – a region that never stops moving.”

The new LATAM logo

When describing the new logo, Jerome Cadier , VP of Marketing for LATAM Airlines Group said, “The logo was inspired by the identity and heritage of the region, incorporating the best of LAN and TAM. For this reason, we selected indigo and coral as the main colors for LATAM. The first represents the best of both worlds as it falls between red and blue which are the main brand colors for TAM and LAN. And the second, symbolizes energy and passion, essential attributes of the new brand. These two colors are supported by secondary colors that bring to life the diversity that is found in Latin America .”

“The implementation of rebranding in our industry is a gradual process and requires a long period of development. It will require a lot of time and effort, but as we work on the implementation of the new brand, we will continue to work in parallel to unify the in-flight experience offered by the LATAM Airlines Group airlines,” explained Cadier.

LATAM Airlines Group is currently working on the new corporate brand, a process that will take approximately three years to complete and will begin to be visible in the first half of 2016 with a gradual roll-out for airports, aircraft, commercial offices, web pages, and uniforms. Some of these change are already visible and can be observed principally in the in flight experience with new redesigned aircraft cabins, the new VIP lounges in Sao Paulo and Santiago – the largest in the region – that are open to the public and form part of the best network of lounges for frequent flyers in the region as well as digital platforms like the option to access onboard entertainment via mobile devices.

The LATAM Airlines Group carriers will be consolidated with the objective of offering unified service in alignment with the new brand. These changes will be announced to passengers and clients in a timely manner.

The Frequent Flyer Programs for LAN, TAM and its affiliates will continue making improvements to the existing programs with any changes also communicated in a timely manner.

LATAM: Consolidating Leadership in Latin America

After the association of LAN and TAM, the Group consolidated its operations in seven domestic markets in the region as well as regional networks within South America , international flights and cargo operations.

Together, both airlines have continued to operate as pioneers in the aviation industry with important achievements such as the unification of their network of passenger and cargo destinations and the renewal of their fleets, incorporating some of the most modern and efficient aircraft in the industry. LAN was the first airline to take delivery of the Boeing 787 in the Americas and TAM will be the delivery client for the Americas for the Airbus A350-900 XWB.

In addition, both companies have unified the interior design of aircraft cabins and onboard service. For the past seven consecutive years, LAN and TAM have alternated between first and second place in the Skytrax World Airlines Survey “Best Airlines in South America ” award category, considered to be one of the leading authorities for levels of satisfaction for the global airline industry.

Both airlines have made investing in a sustainable operation a priority which resulted in LATAM Airlines Group becoming the first airline group in the Americas to join the Dow Jones Sustainability index in 2014.

Choosing the name LATAM

Throughout the integration process the importance of a single brand for the Group was clear. The process through which the brand was defined consisted of several stages where all possible brand scenarios were reviewed. For this process, LATAM Airlines Group hired the brand consultant Interbrand to conduct a study in 10 countries, five of them where LATAM Airlines Group has domestic passenger operations in addition to important long-haul destinations including Brazil , Chile , Peru , Argentina , Colombia, the United States , Spain , England , France and Italy. The study also incorporated input from partners and the needs of clients across the markets where the Group operates, all collected in a thorough study that resulted in the creation of the new value proposition.

Among the various options, the name LATAM always stood out as the best choice for a variety of reasons:

The best option to, from and within Latin America : LAN, TAM and their respective affiliates have a complimentary network and fleet which presents one of the largest advantages for consolidating under a single brand.
LATAM is the group of airlines with the largest presence in the region with more than 1,500 flights per day, domestic passenger operations in seven countries, more than 140 passenger destinations in 24 countries with daily flights to Europe , the United States , Australia , the Caribbean and 144 cargo destinations in 26 countries.
No other airline group has as powerful a presence in the region as LATAM. The LATAM brand will maintain and strengthen the leadership in connectivity to and from the region for passengers as well as cargo.
A single travel experience with world class standards: One of the objectives of the Group is to provide a single in-flight travel experience with a world class standard of service for passengers that reflects the best that Latin America has to offer and is identified with a single brand name.
Greater Efficiencies: LATAM Airlines Group is currently one of the 12 largest passenger and cargo airlines in the world. In the three years since the association of LAN and TAM important synergies have been achieved across different areas of the business and the transition to a single brand like LATAM will further facilitate the consolidation of advantages and benefits for customers, employees and shareholders and move the group towards the goal of being among the top three airlines in the world.
A new culture with the best of both worlds: Before the association, LAN and TAM shared a long history and several similarities in their corporate vision in addition to a great workforce. LATAM Airlines Group has a robust team of 53,000 people around the world dedicated and passionate about achieving the goal of being one of the top three airlines in the world.

LAN-TAM History: CLICK HERE

LAN Airlines (Chile) aircraft slide show:

TAM Airlines aircraft slide show:

TAM to reduce its domestic operations in Brazil

LATAM Airlines Group S.A. and TAM S.A. (TAM Linhas Aereas) (Sao Paulo), announced that TAM will adjust its domestic network in Brazil. The group issued this statement:

In order to allow TAM Airlines to remain committed with its long term sustainable development and growth plans for Brazil, the Company has decided to implement an adjustment to its domestic network at this time.

Given the impact of the challenging economic scenario in the country, caused by an increase in inflation and an appreciation of the U.S. dollar versus the Brazilian real, resulting in a slowdown in the airline industry, TAM is now implementing a gradual reduction of its domestic operations in Brazil of approximately 8% to 10%. As a result, the company has revised its capacity growth (ASK) guidance for this year for the domestic market in Brazil from 0% growth to a contraction of 2 to 4% as compared to 2014.

TAM has been working to adopt several measures to limit the impact of this adjustment on its employees. Nonetheless, the Company estimates it will reduce its staff by less than 2%, considering its normal turnover. Given the Company’s mid-term growth plans, this adjustment will not impact flight crew personnel. TAM will provide support to the affected employees with an outplacement program.

In order to guarantee the best service to its passengers, TAM will continue to serve all domestic destinations that it currently operates.

The Brazilian airline industry has suffered from declining demand, according to National Civil Aviation Agency (ANAC) data. Furthermore, data from the Market Readout of the Brazilian Central Bank released on July 10 indicates that the market projects a further decline of the Brazilian GDP, in 2015, with estimates revised down from a contraction of 1.3% to a 1.5% decline. They also estimate that inflation should end the year at over 9%, while the U.S. dollar is expected to continue to strengthen against the Brazilian real.

“TAM is taking this measure to face the difficult economic scenario of the country. It is necessary to make adjustments to our network while maintaining the connectivity we offer our passengers, and strengthening even further the Company’s competiveness in Brazil ”, said Claudia Sender, CEO of TAM S.A.

“We continue to believe in the country’s recovery and this adjustment in no way affects the Company’s long-term strategy, which include the renewal of the fleet, the feasibility study for the Northeastern hub and the continuous strengthening of our hubs in Brasília and São Paulo/Guarulhos”, she added.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Airbus A321-231 PT-MXM (msn 5987) with Sharklets departs from the Sao Paulo (Guarulhos) hub.

TAM aircraft slide show:

LAN Airlines takes delivery of its first Boeing 787-9 Dreamliner

Boeing (Chicago, Seattle and Charleston) and LAN Airlines (Chile) (Santiago) (LATAM Airlines Group) yesterday (February 5) celebrated the delivery of the airline’s first 787-9 Dreamliner. LATAM Airlines Group is leasing the new airplane from Amsterdam-based lessor AerCap.

LATAM Airlines Group will become Latin America’s first operator of both the 787-8 and 787-9 variants of the Dreamliner family when the airline group launches 787-9 services on South American routes in April.

With this delivery, LATAM Airlines Group will have 11 787s in its fleet, the most in Latin America. The company is building a fleet of 32 787 Dreamliners, including 10 787-9s, over the next several years.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 20 feet (6 meters) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 450 nautical miles (830 kilometers) with the same exceptional environmental performance – 20 percent less fuel use and 20 percent fewer emissions than the airplanes it replaces.

The 787-9 leverages the visionary design of the 787-8, offering passenger-pleasing features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.

Fifty-eight customers from around the world have ordered more than 1,070 787s, with more than 200 airplanes delivered.

Photo: Boeing. Boeing 787-9 CC-BGA (msn 35317) departs from a cloudy Paine Field near Everett, WA.

LAN Airlines (Chile) aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-CSAmerica-2/Airlines-Latin-America2-GZ/LAN-Airlines-Chile

LAN Airlines takes delivery of its first Airbus A321, arrives in Santiago

LAN Airlines (Chile) (Santiago), part of LATAM Airlines Group, celebrated the arrival of its first Airbus A321 today (December 5) at Santiago’s Comodoro Arturo Merino Benítez International Airport.

According to the airline, “This marks a significant milestone as LATAM Airlines affirms its regional and global presence as the largest A320 operator in Latin America. The aircraft, the first of 48 of its kind ordered by the airline, will be operated on domestic routes within Chile and joins LATAM Group’s existing fleet of nearly 230 A320 Family aircraft in operation.”

The A321 aircraft ordered by LAN have a one-class configuration with 220 seats and feature a new LATAM Airlines Group’s cabin, which is a blend of LAN and TAM cabin designs.

The A321 allows for an extended operating range of up to 3,200 nautical miles while carrying a maximum passenger payload; all of which will enhance the efficiency of LAN’s operations within Chile.

Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. The pictured Airbus A321-211 D-AVXO (msn 6364) was officially handed over at Hamburg (Finkenwerder) on November 22 as CC-BEA before its long journey to Chile.

LAN Airlines aircraft slide show:

LAN Airlines continues to expand Boeing 787 operations

LAN Airlines (Santiago) continues to expand its 247-seat Boeing 787 operations. As previously reported, daily Santiago-Miami service was inaugurated on August 9 as well as weekly 787 flights to Cancun and Punta Cana also on August 9.

Santiago-Mexico City 787 service will start now on December 11 (delayed from November 15) on alternating days.

Santiago-Sao Paulo (Guarulhos) flights start on October 1 (three days a week) and daily starting in November).

Finally daily Santiago-Los Angeles service starts on October 1.

The company continues to operate the 787 to Buenos Aires, Madrid and Frankfurt as well as New York (JFK).

In financial news, the LATAM Airlines Group reported a net loss of $58.9 million for the second quarter, reduced from a net loss of $329.8 million in the same quarter a year ago. According to the group, “results this quarter were negatively affected by reduced passenger and cargo demand during the FIFA World Cup soccer tournament held in Brazil, as well as by very week seed exports in the cargo business.”

Read the full report: CLICK HERE

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 CC-BBB (msn 38466) taxies at Paine Field near Everett before the hand over to the carrier.

LAN Airlines (Chile):

LATAM Airlines Group reports first quarter net income of $80.7 million, will phase out its Airbus A330s, A340s, Boeing 737s and Bombardier Q400s

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $146.7 million (US) for first quarter 2014 excluding non-recurring costs related to fleet restructuring. The increase of 28.5% as compared to the first quarter 2013 was driven by strong improvements in the results of LATAM’s passenger operations in most markets, especially in the Brazilian domestic operations, offset by the 18.5% depreciation of the Brazilian real over this period as well as by weaker results in the cargo business. Operating margin excluding fleet restructuring costs reached 4.6%, an increase of 1.2 points compared to 3.4% in 2013.

LATAM Airlines Group’s net income reached $80.7 million (US) for first quarter 2014, excluding non-recurring costs related to fleet restructuring, compared to net income of $42.7 million (US) for the same period 2013.

The group further stated:

Having concluded a thorough review of its post-merger fleet plan and fleet requirements, and the changes in the competitive environment, the Company is undertaking a broad fleet restructuring plan with the aim of reducing the number of models operated, phasing out less efficient models and allocating aircraft best suited to each one of its markets. As a result, the Company expects to redeliver a significant number of aircraft between 2013 and 2016, and to fully phase out its Airbus A330s, A340s, Boeing 737s and Q400s. During the first quarter of 2014, LATAM has provided for estimated penalties related to anticipated redeliveries and other redelivery expenses expected to be incurred as a result of this process, recognizing non-recurring costs of $147 million (US). Of this total amount, $34 million(US) are recorded as aircraft maintenance operating expenses and $112 million (US) are recognized as Other Non-Operating Costs.

During the first quarter of 2014, LATAM continues to rationalize capacity in both passenger and cargo operations. As a result, passenger ASKs declined by 4.3% and cargo ATKs declined by 6.6% as compared to the first quarter of 2013. In the passenger markets, capacity cuts were mainly driven by reductions on international routes, which decreased by 7.5% as compared to the same period in 2013, and the continued rationalization of our domestic Brazil operations. Load factors continue to increase in all markets, reaching record levels at 82.7%.

On March 31, 2014, TAM celebrated its official entrance into the oneworld alliance. This allows TAM to offer customers an improved network in regions that are most important to them, and represents a significant milestone for LATAM Airlines Group as it continues to develop its international connectivity.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. TAM is phasing out its Airbus A330s and its A340s as the group concentrates around its Boeing 767/777/787 fleet for its long-range flights. Airbus A340-541 PT-MSN (msn 445) in the 1999 color scheme arrives back at TAM’s Sao Paulo (Guarulhos) hub.

LAN Airlines (Chile):

TAM Airlines (TAM Linhas Aereas):

LATAM Airlines Group’s 2013 operating profit increases by 605% to $643.9 million

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $234.9 million (US) for fourth quarter 2013, a 166% increase compared to the $88.3 million (US) operating income in fourth quarter 2012. Operating margin reached 6.9%, an increase of 4.4 points compared to 2.5% in 2012. This strong expansion in margins was driven by significant improvement in the financial results of the domestic Brazil operations and the rationalization of international passenger operations, as well as the continued progress of the integration process, synergy and efficiency initiatives.
During the fourth quarter of the year, and in line with the capacity cuts we had anticipated, we strongly decreased our total capacity as measured in ASKs by 4.5% as compared to the same period in 2012. This capacity rationalization was mainly a result of a strong decrease in capacity in our international network, which decreased by 6.5% as compared to the same period in 2012; and the continued rationalization of our domestic Brazil operations.
For full year 2013, LATAM reported operating income of $643.9 million (US), a 605% increase compared to the $91.4 million (US) in full year 2012 (pro forma). Operating margin reached 4.9% an increase of 4.2 points compared to 0.7% in 2012, in line with the guidance provided by the Company.

Read the full report: CLICK HERE

Top Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-233 CC-CQN (msn 3319) of Lan Airlines (Chile) arrives at Aeroparque (Jorge Newbery) (AEP) in downtown Buenos Aires.

LAN Airlines:

TAM Airlines:

Bottom Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-232 PR-MBH (msn 2904) taxies at Buenos Aires downtown airport, Aeroparque (Jorge Newbery).