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GOODWILL (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about intangible assets [abstract]

Schedule of movement of goodwill

						Coalition
Movement of Goodwill, separated by CGU:						and loyalty
		Air				program
		Transport				Multiplus				Total
		ThUS$				ThUS$				ThUS$

Opening balance as of January 1, 2015			2,658,503				654,898				3,313,401
Increase (decrease) due to exchange rate differences			(823,415	)			(209,411	)			(1,032,826	)
Closing balance as of December 31, 2015			1,835,088				445,487				2,280,575
Opening balance as of January 1, 2016			1,835,088				445,487				2,280,575
Increase (decrease) due to exchange rate differences			341,813				88,261				430,074
Others			(267	)			-				(267	)
Closing balance as of December 31, 2016			2,176,634				533,748				2,710,382
Opening balance as of January 1, 2017			2,176,634				533,748				2,710,382
Increase (decrease) due to exchange rate differences			(29,942	)			(7,890	)			(37,832	)
Others			-				-				-
Closing balance as of December 31, 2017			2,146,692				525,858				2,672,550

Schedule of recoverable values categories by CGU

As of December 31, 2017 the recoverable values were determined using the following assumptions presented below:

				Air transportation		Coalition and loyalty
				CGU		program Multiplus CGU (2)
Annual growth rate (Terminal)		%		1.0 - 2.0		4.0 - 5.0
Exchange rate (1)		R$/US$		3.3 - 3.9		3.3 - 3.9
Discount rate based on the weighted average cost of capital (WACC)		%		7.55 - 8.55		-
Discount rate based on cost of equity (Ke)		%		-		12.4 - 13.4
Fuel Price from futures price curves commodities markets		US$/barrel		73-78		-

(1) In line with the expectations of the Central Bank of Brazil

(2) The flow, as well as annual growth rte and discount, are denominated in real.

Schedule of sensitivity analysis of goodwill by CGU

The sensitivity analysis included the individual impact of changes in estimates critical in determining the recoverable amounts, namely:

										Decrease
		Increase				Increase				Minimum
		Maximum				Maximum				terminal
		WACC				CoE				growth rate
		%				%				%
Air transportation CGU			8.55				-				1.0
Coalition and loyalty program Multiplus CGU			-				13.4				4.0