Latam says it is prepared to face a new variant of the coronavirus

The president of Latam Airlines, Roberto Alvo, said this Saturday (27), that the company is financially prepared for possible government restrictions to prevent the spread of the omicron variant, identified in South Africa.

At a press conference after the announcement of the recovery plan of more than US$ 8 billion (R$ 44.6 billion), Alvo said that demand from Latam has recovered in the last three or four months, not only in Brazil but in other countries in which they operate. And that the company has the flexibility to stop if there is a new wave in the pandemic.

“We are aware of the possibility of new restrictions on mobility, and the group is prepared to have a very variable cost structure. We are very reassured today that we will have the financial strength and operational capacity to react to very strong changes.”

However, the president did not provide details on the strategies to be adopted. He just said that shareholders and creditors are committed to raising funds, but, as there is still no clear effect of the new strain, “there is no room for speculation”.

Creditor support for plan approval

Regarding Latam’s recovery plan, Roberto Alvo stated that he already has the support of the majority of creditors for approval. “The company, today, already has the support of 71% of creditors, and, to be approved by American law, it needs two-thirds.”

The company presented a bankruptcy reorganization plan on Friday night (26), which provides for an injection of US$ 8.19 billion, to the United States Bankruptcy Court, in New York — a relief to Chile’s main shareholders and managers . It is estimated that the plan will be approved around January 27, 2022, the date of the next hearing.

According to the executive, the airline Azul expressed interest in buying the business, however, he claims that the proposal was “insufficient and inapplicable” and that, therefore, it was discarded.