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Bankruptcy in Brazil: Now the cat fight between LATAM and GOL begins

Bankruptcy in Brazil: Now the cat fight between LATAM and GOL begins

After bankruptcy, LATAM may have tried to steal planes and crews from its archrival. Gul is now successfully defending himself against this in court.

January 25 is an important date in the history of Brazil's second largest airline. At that time, Gol Linhas Aéreas filed for Chapter 11 bankruptcy protection in New York. This means that the financially distressed airline has different options for reorganization. This move also has the advantage of not being one thing: powerless.

Latam also has to go through this experience. Gul does not allow its competitors to challenge its own fleet. The day after GOL entered bankruptcy protection, LATAM wrote letters to leasing companies asking them to make the struggling airline's planes available to them.

Gul is appealing to the US court

This angered Gul. The airline has asked the court in New York, which is also overseeing the bankruptcy process, to investigate the competitor's conduct. In addition to trying to seize the plane, Latam is also said to have contacted cockpit staff and offered to poach them. It also tried to prevent travel agencies from arranging flights with Gul.

Juul's lawyer, Andrew LeBlanc, said they needed to investigate whether LATAM's tactics violated US bankruptcy law. He also said that Jules had the feeling that it was a very “focused attack”. The responsible judge ordered Latam Gul to submit the relevant documents. In addition, three Latin American executives must also respond to Juul regarding the allegations.

Judge sees connection to Chapter 11

The judge said it was “absurd” to assume it was purely coincidental that LATAM launched the attack on Juul the day after it filed for bankruptcy. Latam's lawyers admitted that the letter dated January 26 “was not a coincidence.” However, the airline was in dire need of planes, so it sent the letters – and this was not motivated by finances.

However, the court rejected Goel's request to closely examine LATAM's latest job advertisement. Goel sees the tender as an attempt to poach pilots. According to the court in New York, there is no evidence of this.