ARC NEWS
LATAM pursues relisting on New York Stock Exchange
April 05, 2024
LATAM Airlines Group's board has approved commencement of efforts to reopen and relist American depositary shares (ADRs) on the New York Stock Exchange. The Chile-based group notes that the process involves several procedures and requirements with regard to the US Securities and Exchange Commission and the NYSE. LATAM's board subsequently "will decide whether or not to approve and make effective LATAM's relisting on the NYSE". It adds that the relisting of LATAM's ADR programme can take up to six months. The 4 April disclosure of LATAM's initiation of the relisting process coincides with the resignation of Bouk Van Geloven from the company's board. The group emerged from its US Chapter 11 restructuring process in November 2022. LATAM and its affiliates in Chile, Peru, Colombia and Ecuador had on 11 May 2020 filed for Chapter 11 amid a near-shutdown of global aviation in the early months of the pandemic. The group shuttered its Argentinian affiliate on 17 June, and on 9 July 2020 included its Brazilian affiliate in the Chapter 11 filing. In the fourth quarter of 2023, LATAM made an operating profit of $304 million, more than doubling its $140 million profit made during the same period in 2022. Brazilian carrier Gol – one of two main competitors to LATAM's affiliate in that country – on 25 January 2024 filed for Chapter 11 bankruptcy protection with the US Bankruptcy Court for the Southern District of New York. The Brazilian government during the pandemic provided little support to domestic carriers, which quickly became saddled with mounting debts owed to lessors, in particular. Speaking during an earnings call on 28 March, John Rodgerson, chief executive of third Brazilian rival Azul, noted that lately "there's been a great dialogue with the Brazilian government". Rodgerson adds: "The three airlines are working jointly to kind of show some of the main concerns that the Brazilian industry has faced over the last few years... there's a significant burden on the airlines because the cost of capital has gone up significantly and because the Brazilian industry did not get any government aid at all."


FlyArystan receives its own AOC
April 04, 2024
FlyArystan, the low-cost carrier brand of Air Astana, has been granted its ownair operator certificate (AOC) by the Aviation Administration of Kazakhstan, allowing it to operate independently. This significant milestone allows FlyArystan to align its operations more effectively with its low-cost carrier model and pursue additional growth opportunities, Air Astana says. Additionally, it enables the airline to receive its own IATA code, facilitating global distribution expansion and potential partnerships with other airlines. Chief executive of the Air Astana Group, Peter Foster, says that the budget airline, which launched five years ago, has been able to stimulate the Kazakh market and grown to a fleet of 18 aircraft, with six more to be delivered this year. "This makes it the right time for FlyArystan to obtain its own operator certificate, reflecting the increased size and operational complexity of the airline. It provides the regulatory framework for FlyArystan to continue to grow while pursuing opportunities for international expansion,” he adds


​EasyJet opens new seasonal base in Alicante
April 04, 2024
EasyJet has opened a new seasonal base at Alicante-Elche Miguel Hernandez airport, taking its total in the country to four. It will be operational from March to October with three Airbus A320 family aircraft, pushing EasyJet's Spain-based fleet up to 19. The carrier will serve 10 new destinations from Alicante, bringing its route network from the city to 22 destinations and offering 1.5 million seats this summer, up by around a tenth on 2023. "With more than 30 million passengers carried since 1999, Alicante was one of the most popular destinations in our network that did not yet have a base, until now," states EasyJet's country director for Southern Europe Javier Gandara. "Opening our fourth base in Spain in Alicante confirms our commitment to this region and is an opportunity to further expand and consolidate our operations in the country." EasyJet's new seasonal base in Alicante aligns with the reopening of its other seasonal bases in Palma de Mallorca and Malaga.


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