Brazil’s Voepass seeks bankruptcy protection amid LATAM dispute and safety setbacks

Brazilian regional airline Voepass has filed for bankruptcy protection, citing financial distress and an unresolved dispute with LATAM Airlines.

The filing, cited by Reuters in a report, reveals Voepass is carrying debts of 209.2 million reais (approximately $36.78 million).

This represents a drastic turn for the regional carrier, which has been struggling since the crash of one of its ATRS near São Paulo in August 2024 that killed all 62 passengers and crew on board.

The accident triggered heightened regulatory scrutiny and culminated in the suspension of its operations by Brazil's aviation regulator ANAC in March 2025, citing safety and maintenance concerns.

In its court challenge, Voepass contends that LATAM Airlines, with whom it had an ongoing codeshare agreement, played a significant part in its financial downfall.

Allegations of interference and withheld payments

The airline claims LATAM breached contractual obligations and withheld payments related to four ATR aircraft operated under a codeshare agreement.

Voepass also accuses LATAM of exerting excessive administrative control over its operations. The dispute is currently under arbitration.

"Despite this dispute already being the subject of arbitration, the fact is that LATAM has always exercised enormous administrative interference in the management of Voepass' business," the airline said in its filing.

The disagreement is over four ATR aircraft operated by Voepass in the codeshare agreement with LATAM.

After the fatal accident, the aircraft operations covered by the contract were reportedly suspended by LATAM, and payments due to Voepass were withheld.

A troubled history resurfaces

Voepass had previously undergone bankruptcy proceedings from 2012 to 2017, after which it restructured and expanded its regional network, including a partnership with LATAM.

Voepass rebuilt its regional network and formed strategic alliances, including a codeshare deal with the LATAM group.

The 2024 disaster not only shattered public trust but also led to regulatory and operational challenges.

In March 2025, Brazil's National Civil Aviation Agency (ANAC) halted all Voepass flights, citing safety and maintenance concerns.

Voepass has been working to re-establish certification and resume operations.

In a statement issued that month, the airline stated that it was "committed to resuming operations as soon as possible" and would work with authorities to address safety concerns.

On August 9, Voepass' regional flight 2283, an ATR-72 flying from Cascavel to Sao Paulo, crashed in Vinhedo.

A preliminary assessment showed evidence of ice buildup on the plane, but no definitive cause.

The ANAC had been closely watching Voepass since the accident and stated that there had been a "breach of trust" in the firm's internal systems, which resulted in the interim suspension.

"ANAC's decision stems from Voepass' inability to solve irregularities identified during the supervision, as well as the violation of previously established conditions for operations to continue within the required safety standards," said the agency last month.