August 22, 2014
LAN resumes its flights after suppliers' conflict
LATAM Airlines Group SA resumed all flight operations to, from and within the country this morning, after halting them due to the conflict with the state company Intercargo on Friday.
Intercargo unilaterally decided to stop providing services to the airline, causing total cancellations of LAN's flights.
Intercargo provides Latin America's biggest carrier with ramps at airports, loads suitcases and manages passenger buses to terminals.
Intercargo said LATAM "doesn't want to pay more than what was agreed initially" and said it is owed a debt of nearly AR$ 40 million ($7.6 million).
Intercargo says the tariffs in the current contract with LATAM should be raised to comply with new government rules.
A source in Argentina's airlines industry familiar with the conflict said Intercargo was demanding the equivalent of $18 million a year to resume the provision of services.
But a spokesman for LATAM's Argentina unit told local media that Intercargo was flouting two separate judicial decisions ordering it to get back to work.
LATAM is doing everything it can to resolve the issue, the Santiago-based company said.