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LATAM scraps plan to acquire Boeing B737s after talks end with bankrupt Gol
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LATAM scraps plan to acquire Boeing B737s after talks end with bankrupt Gol
Apr 24, 2024 4:54 PM

NEW YORK, April 24 (Reuters) - LATAM Airlines said on

Wednesday that it was no longer seeking to acquire Boeing B737

planes either from bankrupt Brazilian carrier Gol or other

sources, opting to look for alternative narrowbody aircraft

after talks failed.

The two airlines clashed shortly after Gol filed for

bankruptcy protection in the U.S. in January, with Gol accusing

LATAM of trying to poach its planes and pilots. LATAM then

offered to acquire any B737s that Gol no longer wished to

operate after its bankruptcy restructuring.

Gol is trying to renegotiate terms on 90 aircraft leases by

the end of May, and LATAM did not say how many planes it hoped

to acquire during Gol's bankruptcy.

LATAM blamed Gol's "lack of meaningful engagement" for the

deal's failure, in a letter filed on Wednesday in Gol's

bankruptcy case.

Gol declined to comment on LATAM's letter.

LATAM said that the "scarcity of available B737 aircraft, as

well as the debtors' refusal to cooperate" had forced LATAM to

pursue alternative narrowbody aircraft to bolster its fleet and

meet rising consumer demand.

"LATAM has been unable over the last several months -

despite its extensive efforts - to obtain B737 aircraft from

other sources unrelated to the debtors," LATAM's attorneys

wrote. "Accordingly, LATAM is unlikely to continue pursuing any

transactions involving the B737."

Airlines have needed to adjust their business plans as

safety concerns have forced Boeing ( BA ) to slow production of its

best-selling 737 Max.

The U.S. Federal Aviation Administration (FAA) stopped

Boeing ( BA ) from expanding its 737 MAX production after a mid-flight

cabin blowout on an Alaska Airlines flight. The FAA gave Boeing ( BA )

90 days to address systemic quality-control issues revealed by

the incident, and Boeing ( BA ) is about halfway through that period.

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