Argentine low-cost carrier Flybondi has filed for creditor protection in Argentina after nearly two months without operating commercial flights, turning to a local restructuring process rather than seeking Chapter 11 protection in the United States.
FB Líneas Aéreas S.A., Flybondi's legal entity, filed for a concurso preventivo de acreedores on October 2. The case was assigned on October 5 to National Commercial Court No. 24 in Buenos Aires, presided over by Judge Guillermo Mario Pesaresi. The court had not yet formally opened the restructuring proceedings when the filing became public.
The distinction is important. Flybondi has requested protection from its creditors but has not been declared bankrupt. Argentina's concurso preventivo allows a company to negotiate its debts under court supervision in an attempt to continue operating.
The airline's operational position has deteriorated sharply. Flybondi has gone 57 days without flights and only three of the 13 aircraft previously in its fleet remain in Argentina, all grounded. The other 10 have been returned or are undergoing redelivery to leasing companies. Since July 1, the carrier has operated only 17.7% of its scheduled flights.
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Passenger numbers show the scale of the collapse. Flybondi carried just 1,865 domestic passengers in August, compared with 254,533 in the same month of 2025.
Local court instead of Chapter 11
Flybondi's decision to restructure in Argentina differs from a route increasingly used by Latin American airlines with significant international creditors and aircraft leasing obligations.
LATAM Airlines, Avianca and Aeromexico all used Chapter 11 proceedings in the United States during the pandemic. Brazilian carrier Azul followed the same route in 2025. Chapter 11 can be available to foreign companies with sufficient connections to the United States and has become particularly useful to airlines because it provides a framework for renegotiating aircraft leases, financing and other contracts while maintaining operations.
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Flybondi instead filed under Argentine insolvency law at a point when its flying activity has already stopped and most of its aircraft have left the fleet.
Its financial problems extend beyond aircraft lessors. Argentine tax authority ARCA and aviation regulator ANAC have imposed attachments exceeding ARS 1.5 billion each. A hotel creditor also sought Flybondi's bankruptcy over an alleged ARS 660.7 million debt, although that petition was rejected over documentation issues rather than a ruling that the debt did not exist.
The concurso preventivo had been under consideration for months. In August, reports in Argentina indicated that the airline was already working on the structure and timing of a possible filing, including discussions over whether Flybondi and logistics company OCA could be treated as an economic group in restructuring proceedings.
Flybondi's ownership situation adds another complication. Cartesian Capital Group continues to appear formally as the airline's controlling shareholder, despite COC Global Enterprise, led by Leonardo Scatturice, taking over management in 2025. The planned transfer of the shareholding was not completed.
The immediate question is whether the Argentine court will formally open the concurso and whether Flybondi can obtain the aircraft and financing needed to resume operations. With 10 aircraft already returned or being returned to lessors, any attempt to rebuild its network would require considerably more than an agreement with existing creditors.
