Daily Management Review

South American Latam says it needs $2B to survive


Latam, one of South America’s largest airlines, needs $ 2 billion to deal with the crisis because of the novel coronavirus pandemic, the company’s CEO Roberto Alvo told The Clinic.

Oliver Holzbauer via flickr
Oliver Holzbauer via flickr
"According to our estimates, we need $ 2 billion in aid or financing," Alvo said.

He explained that the company has already managed to get $ 900 million thanks to shareholders, but, according to him, they also expect financial assistance from the Ministry of Finance of Chile.

"We were negotiating with the government, Finance Minister Ignacio Briones said last week that he was considering (possible) aid in the amount of 500 to 750 million dollars, I hope less if we can get more help," Alvo added.

He commented on the process that the airline had previously begun in the United States when it decided to use Chapter 11 of the U.S. Enterprise Restructuring Act to avoid bankruptcy. According to Alvo, it did not occur to him to liquidate the company. "I think that it will manage, I have no doubt, although I still do not know exactly which way (the company will choose)," he said.

As Alvo noted, at the time of the pandemic, Latam had sold 12 million tickets. "There is not a single structure or organization that would be ready to resolve such a problem overnight, but these people must be sure that at some point this money will not be lost," he said.

source: theclinic.cl