Gol wins court approval to probe alleged Latam plane poaching

Bankrupt Brazilian airline Gol Linhas Aereas Inteligentes SA won court permission to investigate whether its rival Latam Airlines Group SA sought to take unfair advantage of its recent Chapter 11 filing by improperly soliciting major Boeing Co. aircraft suppliers.

Judge Martin Glenn said Monday there is merit in investigating allegations Latam tried to either poach or interfere with Boeing 737 aircraft lessors doing business with Gol after the Brazilian budget airline filed bankruptcy last month.

Glenn cited a letter Latam sent to aircraft lessors the day after Gol filed bankruptcy. A Latam lawyer said the Jan. 26 letter was the fist time in recent years the company had inquired about a type of narrowbody Boeing 737 aircraft flown by Gol. Latam has historically flown a fleet of Airbus aircraft, according to court documents.

It would be “preposterous” to assume it was merely a coincidence Latam sent the letter immediately after Gol filed Chapter 11, Glenn said. In the letter, Latam said it was seeking more aircraft, which the airline said might be of interest to lessors “given the recent events in the industry.”

Glenn granted the Sao Paulo-based airline’s request to get documents and conduct depositions of Latam officials in order to gather evidence, should any exist, substantiating claims that Latam sought to interfere with Gol’s business or violate its Chapter 11 stay, which protects companies in bankruptcy.

Latam has denied the allegations and argued Gol is seeking such information to gain an unfair edge on its rival.

Latam lawyer Kyle Ortiz said the recent events mentioned in the letter were a reference to Gol but also industry news that’s impacted the supply of aircraft, including the accident involving a Boeing 737 flown by Alaska Airlines. Latam is merely seeking a popular type of Boeing aircraft to bolster its fleet and the letter was sent to major airplane lessors that the company, like Gol, already does business with, Ortiz said.

Glenn declined a related request by Gol to obtain information about a Latam job posting that sought Brazilian pilots experienced in flying Boeing aircraft. Gol’s competitors shouldn’t be restricted from their ability to hire pilots, Glenn said, adding he could reconsider the decision based on what information is produced by the bankrupt airline’s inquiry.

The judge also declined to consider a new allegation Gol’s lawyers made Monday alleging Latam may have made improper contact with travel agents. Latam has denied Gol’s allegations.

Gol has already won approval from Glenn to start drawing on a $950 million Chapter 11 loan provided by lenders including Elliott Investment Management LP. The airline is one of the largest in South America but has struggled with financial liabilities it incurred by the drop in travel during the pandemic, substantial debt and Brazil’s high interest rates.

The case is GOL Linhas Aereas Inteligentes SA, 24-10118, US Bankruptcy Court, Southern District of New York (Manhattan).