Gol Airlines has accused Latam Airlines of trying to capitalize on its financial issues by targeting its Boeing planes and pilots, according to the airline’s claims.
This accusation was lodged in a U.S. court document last Thursday. Gol alleges Latam contacted its partners about leasing Boeings and posted online for pilots.
Latam usually uses Airbus planes but showed interest in Gol’s Boeing model.
The day after Gol sought Chapter 11 protection on January 25, Latam inquired about Boeing 737s, a time when Gol was vulnerable.
Gol seeks to subpoena Latam’s documents to explore these claims further. On January 26, Latam told partners it was looking for aircraft amid industry shifts.
The letter, part of the court filing, also mentions Latam’s plans to expand in Brazil and the region.
Gol suspects Latam aims to disrupt its operations, possibly breaching Chapter 11’s automatic stay rule. This rule protects companies from certain creditor actions.
Latam refutes Gol’s claims, stating it’s searching for narrow-body aircraft due to supply chain issues affecting Airbus and Boeing availability.
Latam, which flew Boeing 737s until 2014, says it’s a minor player in the market for these planes.
Latam’s lawyer calls Gol’s accusations baseless and frivolous. He suggests Gol is the one interfering with Latam’s business.
Judge Martin Glenn approved Gol’s request for a $950 million emergency loan under Chapter 11, involving creditors like Elliott Investment Management.
Gol, a leading airline in South America, struggles with the pandemic’s impact, debt, and Brazil’s high interest rates, amassing R$19.5 ($4) billion in gross debt by last September’s end.
This case highlights the competitive tensions and strategic maneuvers within the airline industry, especially in times of financial distress.