LATAM Airlines suspends Argentina operations, blaming COVID-19 and government

LATAM Airlines Group said Wednesday its Argentine subsidiary will cease operations indefinitely, cancelling all domestic flights, its first major cutback since filing for bankruptcy protection. The announcement fell short of saying the company, Latin America's largest airline, will entirely wind down its subsidiary, although it is unclear if it will ever resume operations. A LATAM spokesman said the subsidiary will begin a government process in Argentina before it can lay off 1,715 employees. The airline said it will not fly domestically in Argentina but will maintain international flights, managed by other subsidiaries. LATAM blamed the decision in part on Argentina's government, which has imposed one of the world's toughest travel bans, drawing an outcry from the industry. LATAM said "local industry actors" in Argentina had been difficult to deal with and "made it impossible to foresee a viable and sustainable long-term project." LATAM's competitors have accused Argentina's government of blindsiding them. A source at Argentina's transport ministry, which regulates air traffic, argued nothing had been decided yet. "We have to wait for LATAM to meet with the labor ministry," the source said.<br/>