Brazil’s Voepass Files for Bankruptcy, Blames LATAM for Financial Crisis
Brazilian airline Voepass filed for bankruptcy protection on Tuesday night, according to court documents accessed by Reuters. The company, which operated in the regional segment and had a codeshare agreement with LATAM Airlines, directly blamed LATAM for worsening its financial crisis.
Millions in Debt and Accusations Against LATAM
In its court filing, Voepass revealed a total debt of 209.2 million reais (approximately $36.78 million). The document accuses LATAM of exerting “significant administrative interference” in its operations and failing to meet financial obligations outlined in their commercial agreement.
According to the complaint, LATAM suspended operations of four Voepass ATR aircraft included in the codeshare agreement. Additionally, following the August 2024 plane crash near São Paulo, which resulted in 62 fatalities, LATAM allegedly withheld previously agreed-upon payments.
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History of Conflict and Ongoing Arbitration
Although the dispute between the two companies is currently being addressed through arbitration, Voepass argues that the financial impact of LATAM’s decisions is already irreversible. “The fact is that LATAM always exerted significant administrative interference in Voepass’s business management,” the airline stated in its court filing.
Suspension of Operations and Regulatory Scrutiny
In March, Brazil’s National Civil Aviation Agency (ANAC) suspended all of Voepass’s operations, citing safety concerns. Since then, the airline has issued a statement affirming its priority is to resume operations as soon as possible, though no specific timeline has been provided.
This is not the first time Voepass has faced a severe financial crisis. Between 2012 and 2017, the company underwent bankruptcy proceedings, restructuring its business model and finances. The latest collapse raises questions about the sustainability of its operations in the competitive South American regional market.
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