LATAM group received delivery of a new Boeing 787-9, and is the only group in South America operating this model.
Directly from Charleston (United States) to Santiago (Chile)
Santiago, Chile – WEBWIRE – Sunday, September 10, 2023
LATAM group has received delivery of a new Boeing 787-9 directly from Charleston (United States) to Santiago (Chile), and is the only group of airlines in South America operating this model.
The Boeing 787-9 is equipped with advanced technology that allows it to reduce fuel consumption and CO2 emissions by 20-30% (compared to the previous technology and according to data from its manufacturer) thanks to its lightweight materials, state-of-the-art engines, and modern aerodynamics.
Its arrival is part of LATAM groups fleet renewal and modernization strategy, which will enable it to have 37 Dreamliners – including the 787-8 variant – by the end of this year, becoming one of the most modern and efficient fleets in South America.
With this, the LATAM group aims to finish 2023 with a fleet of 332 aircraft, of which 78 are Wide Body and 254 are Narrow Body.
Our renewal and modernization strategy for the fleet is fully aligned with our commitment to sustainability and brings us closer to the goal of becoming a carbon-neutral group by 2050, said LATAM Airlines Group S.A., CFO, Ramiro Alfonsn.We will continue to work on complementing the current fleet with next-generation aircraft to further improve our connectivity while caring for the environment.
The Dreamliner supports LATAMs group sustainability strategy by offering unmatched fuel efficiency and performance, while providing the group with exceptional route capabilities and passenger comfort, said Mike Wilson, Vice President of Sales and Marketing for Latin America and the Caribbean at Boeing Commercial Airplanes. We are proud to continue our long-standing partnership with the LATAM group, which connects South America to the world and makes all the difference in the communities it serves”
LATAM groups new aircraft will feature 300 seats and has the capacity to cover an approximate distance of 14,010 km. Additionally, it boasts larger windows, spacious overhead compartments, technology that detects and counteracts turbulence for a smoother flight, and onboard diagnostic systems that allow the aircraft to self-monitor and automatically report maintenance requirements to ground systems.
Santiago, Chile – WEBWIRE – Monday, April 25, 2022 LATAM Airlines Group S.A. informs that, in the context of its Chapter 11 reorganization process before the U.S. Bankruptcy Court, it submitted before such Court, an amended Plan of Reorganization (the Plan), and entered into an amendment to the Restructuring Support Agreement (the RSA) executed in furtherance of the Plan.
The purpose of these amendments to the Plan and the RSA is to modify the treatment afforded to the claims (the RCF Claims) related to that certain credit and guaranty agreement dated as of March 29, 2016 (the RCF Credit Agreement). Prior versions of the Plan provided that the RCF Claims were unimpaired, and therefore were presumed to accept the Plan (thus it was not necessary to solicit their votes). The foregoing treatment was proposed with the understanding that the RCF Claims would be either refinanced pursuant to a revised RCF Credit Agreement (the Revised RCF Credit Agreement), or otherwise under the Plan. No other class of claims under the Plan are impacted by the amendment to the Plan.
Since certain few holders of the RCF Claims and other potential sources of financing are not currently in a position to provide the required funding in the amount and structure that was contemplated under the Revised RCF Credit Agreement, LATAM is required to modify the treatment of the RCF Claims under the Plan in order to provide that the RCF Claims are now impaired under the Plan, and therefore entitled to vote to accept or reject the Plan. The amendment further provides that each holder of the RCF Claims will be entitled to elect between two different treatments depending on whether each holder is willing to provide financing commitments for the Revised RCF Credit Agreement. While holders of the RCF Claims that provide financing commitments will receive Class 1a Treatment, holders of the RCF Claims that do not provide financing commitments, as well as those who make no election, will receive Class 1bTreatment.
Under this construct, the aggregate amount of the Revised RCF Credit Agreement would be U.S.$600 million consisting of a combination of a Tranche A Facility and a Tranche B Facility in a proportion that will be determined depending on elections by holders of the RCF Claims. The Tranche B Facility will be subordinated in right of payment to borrowings under the Tranche A Facility.
The Tranche A Facility will be reserved for holders of the RCF Claims who elect Class 1a Treatment. Such facility would consist on a new revolving facility that will remain undrawn throughout the effective date of the Plan. The Tranche A Facility will have a three-year maturity date and will accrue interests at SOFR + 3% per annum, which will be paid on a monthly, quarterly or semiannual basis. Under the amended Plan, each holder of the RCF Claims that elects Class 1a Treatment would also receive a distribution in cash equal to the outstanding principal amount under the RCF Credit Agreement, plus the respective unpaid interest, fees and expenses comprising the allowed amount of such RCF Claim (to the extent not previously paid by LATAM).
In turn, the Tranche B Facility will be reserved for holders of the RCF Claims who elect Class 1b Treatment, as well as to holders who make no election. Such facility will serve the purpose of refinancing (in the form of take-back debt) the outstanding principal amount of their respective RCF Claims. The Tranche B Facility will have a five-year maturity date and will accrue interests at a fixed rate of 4.25% per annum, which will be paid on a quarterly basis. Under the amended Plan, each holder of the RCF Claims that receives Class 1b Treatment would also receive a distribution in cash equal to any unpaid interest, fees, and expenses comprising the allowed amount of their respective RCF Claims (to the extent not previously paid by LATAM). It obtained fourth place worldwide in measurement, receiving 72 points (out of 100) and placing itself in the top decile of the airline industry. It should be remembered that the group launched its sustainability strategy earlier this year, setting the goal to eliminate single-use plastics by 2021, be zero-to-waste landfill by 2027 and achieve carbon neutrality by 2050.
LATAM Airlines Group obtained fourth place worldwide in Standard & Poors (S&P) Global Corporate Sustainability Assessment (CSA), and has positioned itself as the airline with the best sustainability performance in the American and European continents. According to the most recent results published.
Since 1999, the Corporate Sustainability Assessment and its collaboration with S&P Dow Jones Indices have been used to create the leading global sustainability benchmark. This year, more than 10,000 companies were evaluated in three areas: environmental, social and governance.
The result obtained is very positive news that encourages and shows us that we are on the right track, but it is not enough. We cannot think of a LATAM in the future that does not go hand-in-hand with the development of our ecosystems and communities. We are working to become the economic, social and environmental outlet that we aspire to be in the countries where we operate, said Roberto Alvo, CEO at LATAM Airlines Group.
Earlier this year, the group launched its sustainability strategy based on three pillars: Climate Change, Circular Economy and Shared Value, highlighting its commitment to the protection of strategic ecosystems in South America, migration to a zero waste to landfill model, and making its connectivity capacity available for the benefit of the regions communities.
The strategys lines of action were designed collaboratively with experts and environmental organizations throughout the region and seek to make the group carbon neutral by 2050.
Climate Change: The group will seek to reduce its emissions by incorporating sustainable fuels and new aviation technologies that will be available beginning in 2035. In addition, it will promote a program that will allow passengers, corporate and cargo customers the option of offsetting CO2 emissions associated with their trips by supporting iconic projects in the region. As part of its value proposition, LATAM will match the amount of tons of CO2 offset.
In line with its objective to contribute to the protection and recovery of ecosystems, it recently announced the first conservation project to advance carbon neutrality: CO2BIO. CO2BIO is an initiative that will conserve 200 thousand hectares of flooded savanna, a habitat to more than 2,200 species that has the potential to capture up to 2.8 million tons of CO2 by 2025.
Circular Economy: LATAM is also committed to promoting a culture of elimination, reduction, reusing and recycling throughout its operation in order to become a group that generates zero waste to landfill by 2027. Single-use plastics will be eliminated before 2023 and recycling actions, such as the Recycle Your Trip program (segregation of waste generated on board such as aluminum, glass and plastic), are currently in place; in addition to a program that recycles uniforms and allows them to be used as raw materials in new products.
Shared Value: The group will expand its capacity to transport cargo and people for health programs, natural disasters and environmental care. This is in line with the Solidarity Plane program, which collaborates with communities through agreements, offering free expertise, infrastructure, connectivity and speed of transportation through passages and cargo transfers. To date, the program has transported more than 165 million vaccines, more than 1 million tons of medical supplies, 3,233 health professionals, and more than 1,800 organs and tissues free of charge since the start of the pandemic.
LATAM Amends Treatment of RCF Claims under its Plan
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