Bankrupt Brazilian airline Gol investigates rival LATAM’s alleged poaching attempt
Brazilian airline Gol Linhas Aéreas Inteligentes SA (Gol), which recently filed for Chapter 11 bankruptcy protection in the United States, has been granted permission by a U.S. court to investigate rival carrier LATAM Airlines Group SA’s alleged attempts to poach Gol’s Boeing 737 aircraft. Gol has accused LATAM of taking advantage of its bankruptcy status to hinder its operations and recovery.
In a court hearing, Gol’s attorney raised concerns about the potential violation of U.S. bankruptcy law by LATAM’s actions. The judge ordered LATAM to provide documentation and make three company executives available for interviews to shed light on their recent efforts to acquire more aircraft leased to Gol.
The judge expressed skepticism regarding LATAM’s assertion that their outreach was merely a coincidence, as it coincided with Gol’s bankruptcy filing. LATAM admitted that their letter to aircraft owners was part of their strategic attempt to acquire Boeing 737 planes after several years. However, LATAM clarified that their motivation was not solely driven by Gol’s bankruptcy but was also influenced by their need for additional planes to lease to multiple airlines.
While the judge denied Gol’s request to investigate LATAM’s job postings for pilots, Gol has the option to return to court regarding LATAM’s communications with travel agents.
Gol, which has been facing difficulties due to the COVID-19 pandemic and challenges in acquiring Boeing 737 Max aircraft, hopes that the outcome of the investigation will reveal the competitive dynamics within the airline industry and the vulnerability of bankrupt airlines to such actions.
Analyst comment
Neutral news.
As an analyst, the outcome of Gol’s investigation will provide insight into the competitive landscape of the airline industry and the susceptibility of bankrupt airlines to poaching. It will also reveal the impact of LATAM’s actions on Gol’s recovery.
