PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

Property, plant and equipment [abstract]

Schedule of composition of property, plant and equipment

The composition by category of Property, plant and equipment is as follows:

	Gross Book Value				Acumulated depreciation						Net Book Value
	As of		As of		As of			As of			As of		As of
	December 31,		December 31,		December 31,			December 31,			December 31,		December 31,
	2018		2017		2018			2017			2018		2017
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$
Construction in progress (1)		630,320		556,822		-			-			630,320		556,822
Land		45,424		49,780		-			-			45,424		49,780
Buildings		179,907		190,552		(67,342	)		(66,004	)		112,565		124,548
Plant and equipment		8,371,990		9,222,540		(2,727,539	)		(2,390,142	)		5,644,451		6,832,398
Own aircraft (2)		7,732,238		8,544,185		(2,492,940	)		(2,138,612	)		5,239,298		6,405,573
Other (3)		639,752		678,355		(234,599	)		(251,530	)		405,153		426,825
Machinery		34,253		39,084		(27,659	)		(29,296	)		6,594		9,788
Information technology equipment		160,936		166,713		(138,372	)		(136,557	)		22,564		30,156
Fixed installations and accessories		182,629		186,989		(111,620	)		(106,212	)		71,009		80,777
Motor vehicles		69,653		70,290		(60,531	)		(58,812	)		9,122		11,478
Leasehold improvements		211,322		186,679		(128,055	)		(102,454	)		83,267		84,225
Other property, plants and equipment		4,961,847		3,640,838		(1,633,798	)		(1,355,475	)		3,328,049		2,285,363
Financial leasing aircraft (2)		4,862,985		3,551,041		(1,604,035	)		(1,328,421	)		3,258,950		2,222,620
Other		98,862		89,797		(29,763	)		(27,054	)		69,099		62,743
Total		14,848,281		14,310,287		(4,894,916	)		(4,244,952	)		9,953,365		10,065,335

(1) As of December 31, 2018, includes advances paid to aircraft manufacturers for ThUS$ 612,236 (ThUS$ 543,720 as of December 31, 2017)

(2) In the period ended December 31, 2018, the Company sold its participation in twenty special-purpose entities. As a result of this, 50 aircraft were reclassified from the category Plants and equipment to the category Other properties, plants and equipment.

(3) Consider mainly rotables and tools.

Schedule of movement of property, plant and equipment

Movement in the different categories of Property, plant and equipment:

																									Other
													Information			Fixed									property,			Property,
										Plant and			technology			installations			Motor			Leasehold			plant and			Plant and
	Construction						Buildings			equipment			equipment			& accessories			vehicles			improvements			equipment			equipment
	in progress			Land			net			net			net			net			net			net			net			net
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance as of January 1, 2016		1,142,812			45,313			91,491			7,341,075			43,889			88,958			1,525			54,088			2,129,506			10,938,657
Additions		14,481			-			272			1,301,093			7,392			292			6			54,181			13,013			1,390,730
Disposals		-			-			-			(16,918	)		(59	)		-			(32	)		-			(2,972	)		(19,981	)
Retirements		(284	)		-			(68	)		(39,816	)		(55	)		(1,258	)		-			-			(2,604	)		(44,085	)
Depreciation expenses		-			-			(6,234	)		(562,131	)		(14,909	)		(13,664	)		(293	)		(23,283	)		(124,038	)		(744,552	)
Foreing exchange		5,081			4,835			2,538			51,770			2,924			9,384			223			2,849			93,383			172,987
Other increases (decreases)		(692,025	)		-			42,220			(285,198	)		532			200			(384	)		16,706			(277,658	)		(1,195,607	)
Changes, total		(672,747	)		4,835			38,728			448,800			(4,175	)		(5,046	)		(480	)		50,453			(300,876	)		(440,508	)
Closing balance as of December 31, 2016		470,065			50,148			130,219			7,789,875			39,714			83,912			1,045			104,541			1,828,630			10,498,149
Opening balance as of January 1, 2017		470,065			50,148			130,219			7,789,875			39,714			83,912			1,045			104,541			1,828,630			10,498,149
Additions		11,145			-			-			258,615			5,708			329			77			8,156			41,483			325,513
Disposals		-			-			-			(16,004	)		(6	)		(10	)		(43	)		-			(27	)		(16,090	)
Retirements		(127	)		-			(6	)		(24,341	)		(473	)		(497	)		-			-			(1,610	)		(27,054	)
Depreciation expenses		-			-			(7,946	)		(496,857	)		(14,587	)		(14,124	)		(187	)		(27,266	)		(204,237	)		(765,204	)
		107			(368	)		(275	)		(4,603	)		(183	)		(820	)		(8	)		(243	)		(5,113	)		(11,506	)
Other increases (decreases)		75,632			-			2,556			(653,457	)		(17	)		11,987			(448	)		(963	)		626,237			61,527
Changes, total		86,757			(368	)		(5,671	)		(936,647	)		(9,558	)		(3,135	)		(609	)		(20,316	)		456,733			(432,814	)
Closing balance as of December 31, 2017		556,822			49,780			124,548			6,853,228			30,156			80,777			436			84,225			2,285,363			10,065,335
Opening balance as of January 1, 2018		556,822			49,780			124,548			6,853,228			30,156			80,777			436			84,225			2,285,363			10,065,335
Additions		7,927			-			-			593,210			4,995			64			24			20,410			42,156			668,786
Disposals		-			(8	)		(1,413	)		(4,747	)		(30	)		(73	)		(14	)		-			-			(6,285	)
Retirements		(80	)		-			(19	)		(63,711	)		(94	)		(27	)		-			(4	)		(62	)		(63,997	)
Depreciation expenses		-			-			(6,219	)		(406,714	)		(11,677	)		(12,538	)		(146	)		(27,766	)		(298,863	)		(763,923	)
Foreing exchange		(713	)		(4,348	)		(4,244	)		(42,077	)		(1,818	)		(8,499	)		(28	)		(2,351	)		(52,410	)		(116,488	)
Other increases (decreases)		65,991			-			(88	)		(1,273,218	)		733			10,194			273			8,753			1,351,559			164,197
Adjustment application IAS 29		265			-			-			3,053			264			1,018			65			-			275			4,940
Hyperinflation Argentina		108			-			-			509			35			93			24			-			31			800
Changes, total		73,498			(4,356	)		(11,983	)		(1,193,695	)		(7,592	)		(9,768	)		198			(958	)		1,042,686			(111,970	)
Closing balance as of December 31, 2018		630,320			45,424			112,565			5,659,533			22,564			71,009			634			83,267			3,328,049			9,953,365

Schedule of composition of the fleet

Composition of the fleet:

		Aircraft included
		in Property,						Operating						Total
		plant and equipment						leases						fleet
		As of			As of			As of			As of			As of			As of
		December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
Aircraft	Model	2018			2017			2018			2017			2018			2017
Boeing 767	300ER		33			34			2			2			35			36
Boeing 767	300F		9	(4)		8	(1)		1			2			10	(4)		10	(1)
Boeing 777	300ER		4			4			6			6			10			10
Boeing 777	200ER		-			-			2			-			2			-
Boeing 787	800		6			6			4			4			10			10
Boeing 787	900		4			4			10			10			14			14
Airbus A319	100		37			37			9			9			46			46
Airbus A320	200		97	(2)		93	(2)		34			38			131	(2)		131	(2)
Airbus A320	NEO		1			1			3			3			4			4
Airbus A321	200		30			30			19			17			49			47
Airbus A350	900		5	(3)		5	(3)		4	(3)		2	(3)		9	(3)		7	(3)
Total			226			222			94			93			320			315

(1) One aircraft leased to FEDEX as of December 2017; three aircraft as of December 2016.

(2) Three aircraft leased to Salam Air and two to Sundair

(3) Two aircraft leased to Qatar Air. One in operating lease and one in Properties, plant and equipment.

(4) One aircraft leased to Aerotransportes Mas de Carga S.A. de C.V. as of December 2018

Schedule of method used for the depreciation of property, plant and equipment

Method used for the depreciation of Property, plant and equipment:

		Useful life (years)
	Method	minimum		maximum
Buildings	Straight line without residual value		20		50
Plant and equipment	Straight line with residual value of 20% in the short-haul fleet and 36% in the long-haul fleet. (*)		5		23
Information technology equipment	Straight line without residual value		5		10
Fixed installations and accessories	Straight line without residual value		10		10
Motor vehicle	Straight line without residual value		10		10
Leasehold improvements	Straight line without residual value		5		5
Other property, plant and equipment	Straight line with residual value of 20% in the short-haul fleet and 36% in the long-haul fleet. (*)		10		23

(*) Except in the case of the Boeing 767 300ER and Boeing 767 300F fleets that consider a lower residual value due to the extension of their useful life to 22 and 30 years respectively. Additionally, certain technical components are depreciated based on cycles and hours flown.

The aircraft with remarketing clause (**) under modality of financial leasing, which are depreciated according to the duration of their contracts, between 12 and 18 years. Its residual values ​​are estimated according to market value at the end of such contracts.

(**) Aircraft with remarketing clause are those that are required to sell at the end of the contract.

Schedule of property, plant and equipment pledged as guarantee

Description of Property, plant and equipment pledged as guarantee:

			As of				As of
			December 31,				December 31,
			2018				2017
Guarantee	Assets		Existing		Book		Existing		Book
agent  (1)	committed	Fleet	Debt		Value		Debt		Value
			ThUS$		ThUS$		ThUS$		ThUS$
Wilmington	Aircraft and engines	Airbus A319		96,057		234,329		-		-
		Airbus A320		98,903		220,390		-		-
		Airbus A321 / A350		587,382		682,639		637,934		721,602
Trust Company		Boeing 767		82,793		206,868		593,655		888,948
		Boeing 787		672,065		736,858		720,267		842,127
Banco Santander S.A.	Aircraft and engines	Airbus A320		172,474		275,511		199,165		291,649
		Airbus A321		25,661		41,957		29,296		40,584
BNP Paribas	Aircraft and engines	Airbus A319		26,702		45,520		84,767		136,407
		Airbus A320		-		-		110,267		175,650
Credit Agricole	Aircraft and engines	Airbus A319		11,154		31,865		20,874		38,826
		Airbus A320		134,328		132,301		46,895		98,098
		Airbus A321		-		-		30,322		85,463
		Airbus A350		22,439		24,939		-		-
		Boeing 767		21,830		43,568		-		-
		Boeing 787		74,023		42,228		-		-
Wells Fargo	Aircraft and engines	Airbus A320		196,540		285,877		224,786		306,660
Bank of Utah	Aircraft and engines	Airbus A320 / A350		556,019		630,065		614,632		666,665
Natixis	Aircraft and engines	Airbus A320		-		-		34,592		72,388
		Airbus A321		324,524		410,771		378,418		481,397
Citibank N. A.	Aircraft and engines	Airbus A320		78,049		132,296		94,882		141,817
		Airbus A321		28,938		70,333		36,026		72,741
KfW IPEX-Bank	Aircraft and engines	Airbus A319		-		-		5,592		5,505
		Airbus A320		-		-		21,296		30,513
Airbus Financial Services	Aircraft and engines	Airbus A319		-		-		22,927		26,973
				-		-		-		-
PK AirFinance US, Inc.	Aircraft and engines	Airbus A320		37,615		52,435		46,500		56,539
JP Morgan	Aircraft and engines	Boeing 777 (2)		-		-		169,674		216,000
Banco BBVA	Land and buildings (3)			50,785		64,500		55,801		66,876
Total direct guarantee				3,298,281		4,365,250		4,178,568		5,463,428

(1) For syndicated loans, is the Guarantee Agent that, represent different creditors.

(2) At December 31, 2017 these assets were classified on Non-current assets and groups in expropriation held for sale.

(3) Corresponds to a debt classified in item loans to exporters (see Note 19).

Schedule of fully depreciated assets and commitments for future purchases

Fully depreciated assets and commitments for future purchases are as follows:

	As of		As of
	December 31,		December 31,
	2018		2017
	ThUS$		ThUS$
Gross book value of fully depreciated property, plant and equipment still in use		192,606		136,811
Commitments for the acquisition of aircraft (*)		14,400,000		15,400,000

(*) Acording to the manufacturer’s price list.

Schedule of purchase commitment

Purchase commitment of aircraft

	Year of delivery
Manufacturer	2019		2020		2021		2022		2023-2026		Total
Airbus S.A.S.		13		9		13		11		21		67
A320-NEO		9		5		6		5		7		32
A321-NEO		-		4		5		4		6		19
A350-1000		-		-		-		-		8		8
A350-900		4		-		2		2		-		8
The Boeing Company		2		2		2		-		4		10
Boeing 777-F		-		-		-		-		2		2
Boeing 787-9		2		2		2		-		2		8
Total		15		11		15		11		25		77

Schedule of capitalized interest costs

Capitalized interest costs with respect to Property, plant and equipment.

		For the year ended
		December 31,
		2018		2017		2016
Average rate of capitalization of capitalized interest costs	%		4.62		4,12		3.54
Costs of capitalized  interest	ThUS$		15,398		8,210		(696	)

Schedule of financial leases

The detail of the main financial leases is as follows:

			As of		As of
	Aircraft		December 31,		December 31,
Lessor	engines and rotables	Model	2018		2017
777 Components Leasing. LLC	Boeing 777	Rotables		1		-
Amendoeira Leasing Limited	Airbus A319	100		1		-
Angelim Leasing Limited	Airbus A319	100		1		-
Angelim Leasing Limited	Airbus A320	200		2		-
Angelim Leasing Limited	Airbus A321	200		2		-
Araucaria Leasing Limited	Airbus A320	200		1		-
Azalea Leasing Limited	Airbus A320	200		1		-
Bandurria Leasing Limited	Airbus A319	100		3		3
Bandurria Leasing Limited	Airbus A320	200		4		4
Becacina Leasing LLC	Boeing 767	300ER		1		1
Chucao Leasing Limited	Airbus A319	100		2		-
Caiquen Leasing LLC	Boeing 767	300F		-		1
Cisne Leasing LLC	Boeing 767	300ER		2		2
Conure Leasing Limited	Airbus A320	200		2		2
Figueira Leasing Limited	Airbus A320	200		1		-
Flamenco Leasing LLC	Boeing 767	300ER		1		1
FLYAFI 1 S.R.L.	Boeing 777	300ER		1		1
FLYAFI 2 S.R.L.	Boeing 777	300ER		1		1
FLYAFI 3 S.R.L.	Boeing 777	300ER		1		1
Fragata Leasing LLC	Boeing 787	800		1		-
Garza Leasing LLC	Boeing 767	300ER		1		1
Golondrina Leasing LLC	Boeing 767	300ER		4		-
Imbuia Leasing Limited	Airbus A320	200		1		-
Jacarandá Leasing Limited	Airbus A320	200		1		-
Jatobá Leasing Limited	Airbus A319	100		1		-
Jilguero Leasing LLC	Boeing 767	300ER		3		3
Loica Leasing Limited	Airbus A319	100		2		2
Loica Leasing Limited	Airbus A320	200		2		2
Massaranduba Leasing Limited	Airbus A320	200		2		-
Massaranduba Leasing Limited	Airbus A321	200		3		-
Mirlo Leasing LLC	Boeing 767	300ER		1		1
Mogno Leasing Limited	Airbus A319	100		1		-
NBB Rio de Janeiro Lease CO and Brasilia Lease LLC (BBAM)	Airbus A320	200		1		1
NBB São Paulo Lease CO. Limited (BBAM)	Airbus A321	200		1		1
Osprey Leasing Limited	Airbus A319	100		-		8
Patagon Leasing Limited	Airbus A319	100		3		3
Petrel Leasing LLC	Boeing 767	300ER		-		1
Pau Brasil Leasing Limited	Airbus A319	100		1		-
Pochard Leasing LLC	Boeing 767	300ER		2		2
Quetro Leasing LLC	Boeing 767	300ER		-		3
Rolls Royce Leasing Limited	Motor	TRENTXWB		1		-
SG Infraestructure Italia S.R.L.	Boeing 777	300ER		1		1
Sibipiruna Leasing Limited	Airbus A320	200		2		-
SL Alcyone LTD (Showa)	Airbus A320	200		1		1
Tagua Leasing LLC	Boeing 767	300ER		9		-
Tiuque Leasing Limited	Airbus A319	100		1		-
Tiuque Leasing Limited	Airbus A320	200		5		-
Torcaza Leasing Limited	Airbus A320	200		8		8
Tricahue Leasing LLC	Boeing 767	300ER		3		3
Wacapou Leasing S.A	Airbus A320	200		1		1
Wells Fargo Trust Company, N.A.	Airbus A319	100		-		1
Ype Leasing Limited	Airbus A319	100		1		-
Total				92		60

Schedule of minimum payments under financial leases

The minimum payments under financial leases are as follows:

	As of December  31, 2018							As of December  31, 2017							As of December  31, 2016
	Gross					Present		Gross					Present		Gross					Present
	Value		Interest			Value		Value		Interest			Value		Value		Interest			Value
	ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$
No later than one year		442,030		(43,871	)		398,159		303,863		(32,447	)		271,416		285,168		(32,365	)		252,803
Between one and five years		1,188,032		(50,610	)		1,137,422		835,696		(30,050	)		805,646		704,822		(43,146	)		661,676
Over five years		116,955		(5,830	)		111,125		36,788		(816	)		35,972		43,713		(120	)		43,593
Total		1,747,017		(100,311	)		1,646,706		1,176,347		(63,313	)		1,113,034		1,033,703		(75,631	)		958,072