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OTHER PROVISIONS (Tables)

12 Months Ended

Dec. 31, 2021

OTHER PROVISIONS [Abstract]

Schedule of other provisions

		Current liabilities								Non-current liabilities								Total Liabilities
		As of December 31,				As of December 31,				As of December 31,				As of December 31,				As of December 31,				As of December 31,
		2021				2020				2021				2020				2021				2020
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Provision for contingencies (1)
Tax contingencies			24,330				21,188				490,217				364,342				514,547				385,530
Civil contingencies			3,154				2,266				92,955				103,984				96,109				106,250
Labor contingencies			388				320				98,254				48,115				98,642				48,435
Other			-				-				21,855				17,821				21,855				17,821
Provision for European
Commission investigation (2)			-				-				9,300				10,097				9,300				10,097
Provisions for onerous contracts (3)			-				-				-				44,000				-				44,000
Total other provisions (4)			27,872				23,774				712,581				588,359				740,453				612,133

(1)	Provisions for contingencies:

The tax contingencies correspond to litigation and tax criteria related to the tax treatment applicable to direct and indirect taxes, which are found in both administrative and judicial stage.

The civil contingencies correspond to different demands of civil order filed against the Company.

The labor contingencies correspond to different demands of labor order filed against the Company.

The Provisions are recognized in the consolidated income statement in administrative expenses or tax expenses, as appropriate.

(2)	Provision made for proceedings brought by the European Commission for possible breaches of free competition in the freight market.

(3)	Based on market information on the drop in the price of some assets, a provision was made for onerous contracts associated with the purchase commitments of aircraft.

(4)

Total other provision as of December 31, 2021, and December 31, 2020, include the fair value correspond to those contingencies from the business combination with TAM S.A and subsidiaries, with a probability of loss under 50%, which are not provided for the normal application of IFRS enforcement and that only must be recognized in the context of a business combination in accordance with IFRS 3.

Schedule of movement of provisions

						European
		Legal				Commission				Onerous
		claims (1)				Investigation (2)				Contracts				Total
		ThUS$				ThUS$				ThUS$				ThUS$

Opening balance as of January 1, 2019			298,886				9,403				-				308,289
Increase in provisions			134,847				-				-				134,847
Provision used			(82,212	)			-				-				(82,212	)
Difference by subsidiaries conversion			(10,764	)			-				-				(10,764	)
Reversal of provision			(58,063	)			-				-				(58,063	)
Exchange difference			(302	)			(186	)			-				(488	)
Closing balance as of December 31, 2019			282,392				9,217				-				291,609
Opening balance as of January 1, 2020			282,392				9,217				-				291,609
Increase in provisions			408,078				-				44,000				452,078
Provision used			(47,238	)			-				-				(47,238	)
Difference by subsidiaries conversion			(58,654	)			-				-				(58,654	)
Reversal of provision			(25,563	)			-				-				(25,563	)
Exchange difference			(979	)			880				-				(99	)
Closing balance as of December 31, 2020			558,036				10,097				44,000				612,133
Opening balance as of January 1, 2021			558,036				10,097				44,000				612,133
Increase in provisions			403,229				-				-				403,229
Provision used			(84,497	)			-				-				(84,497	)
Difference by subsidiaries conversion			(25,531	)			-				-				(25,531	)
Reversal of provision			(119,029	)			-				(44,000	)			(163,029	)
Exchange difference			(1,055	)			(797	)			-				(1,852	)
Closing balance as of December 31, 2021			731,153				9,300				-				740,453

(1)

Accumulated balances include a judicial deposit delivered in guarantee, with respect to the “Fundo Aeroviario” (FA), for MUS$ 65, made in order to suspend the collection and the application of a fine. The Company is discussing in Court the constitutionality of the requirement made by FA calculated at the ratio of 2.5% on the payroll in a legal claim. Initially the payment of said contribution was suspended by a preliminary judicial decision and about 10 years later, this same decision was reversed. As the decision is not final, the Company has deposited the securities open until that date, in order to avoid collection processing and the application of the fine.

(2)	European Commission Provision