LATAM Airlines Group has determined that the likelihood of entering into transactions with GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) to acquire any outstanding B737 leases is remote, following the Brazilian carrier’s “lack of meaningful engagement in entering into commercial discussions,” the group said in a filing to the United States Bankruptcy Court of the Southern District of New York.
Additionally, “LATAM has been unable, over the last several months, to obtain B737 aircraft from other sources unrelated to [GOL]. Accordingly, it is unlikely to continue pursuing any transactions involving the B737,” it added in the filing seen by ch-aviation.
LATAM Airlines Brasil (JJ, São Paulo Congonhas) sent a letter to GOL on March 1, in connection to the group’s Chapter 11 bankruptcy process, in which it formally expressed its interest in acquiring B737 aircraft, helping GOL to “avoid potentially sizeable rejection damages claims,” while assisting LATAM source second-hand airframes in a tight market.
However, GOL’s lawyers told Judge Martin Glenn that LATAM was illegally interfering with its restructuring and asked him to apply Rule 2004 of the US Bankruptcy Procedure on LATAM. Furthermore, GOL’s restructuring advisor, Seabury Securities LLC, told LATAM that the Chapter 11 carrier could not assume and assign leases and that it should “keep an eye” on rejection motions so it could engage with the relevant lessors.
GOL has been in talks with different lessors and is reportedly looking to return between eight and 16 aircraft.
While LATAM Airlines (LA, Santiago de Chile) and its subsidiaries across South America do operate Boeing aircraft, they are all widebodies. Rather than B737s, the group employs an Airbus A320 Family narrowbody fleet.
