In filing for bankruptcy, the airline hopes to continue operations as COVID-19 restrictions are gradually lifted. The airline — the second-largest in Latin America — says it is responsible for more than 21,000 jobs throughout the region, including more than 14,000 in Colombia.
2020-05-11T05:55:36Z
Travel News Flights: Airline Avianca files for bankruptcy over pandemic COLUMBIAN airline Avianca is the second-largest carrier in Latin America, … Avianca shows how airlines should respond Plane Talk: EU carriers are required to provide care during disruption, but all too often fail to deliver Simon Calder Travel Correspondent as well as other partner offers and accept our Avianca Costa Rica, a subsidiary operated by Avianca Holdings, is the last remaining vestige of LACSA (Líneas Aéreas Costarricenses, S.A), Costa Rica’s national airline.
Data from flight-data firm Cirium In Latin America, passenger traffic fell nearly 40% year-over-year in March, according to the latest data from trade group the International Air Transport Association (IATA).
Avianca is optimistic about its future after the coronavirus pandemic. The airline plans to shrink its fleet that consisted of 158 passenger aircraft and 13 freighters at the end of 2019. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. The company said the filing was spurred by the COVID-19 pandemic, which grounded Avianca's flight operations since mid-March and has reduced the company's income by over 80%. The carriers have been working on a United could take a larger equity stake in Avianca — or have its financial position wiped out entirely — through the bankruptcy process.Avianca’s restructuring comes just months after it marked its 100th anniversary in December. A leading-edge research firm focused on digital transformation.Avianca Holdings filed for bankruptcy on Sunday as the airline industry continues to take a hit under coronavirus travel restrictions. Several airlines around the world have faced new financial hardships, with some "Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic," Anko van der Werff, Chief Executive Officer of Avianca, said in the statement. The airline filed for bankruptcy in 2003 and underwent a major reorganization process after it was bought out by Bolivian-born entrepreneur German Efromovich, who still owns a majority stake in the carrier.According to Reuters, Avianca had $7.3 billion in debts in 2019. In 1998, LACSA became a member airline of TACA (Transportes Aéreos del Continente Americano). Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.Kodak shares drop 40 percent after government deal halted due to probe into 'wrongdoing'Dollar Tree, Family Dollar reverse decision to require masks at all stores, but 'request' customers wear them The Santiago, Chile-based carrier had a 64% share of seats in the Peruvian domestic market in 2019, according to Cirium schedule data.
Instead, the already financially weak airline plans to “right size” through the courts with the outlook for its core business — air travel in Colombia and Latin America — positive.“In the medium to long term, airline travel is expected to continue to play a key part in the global economy… [Avianca’s] core businesses remain strong, and the challenges negatively impacting their industry will likely abate,” the carrier said in a court filing on Monday.LifeMiles had 9.7 million members at the end of 2019.However, Avianca itself has struggled as air travel has all but ground to a halt around the world. The second-largest carrier in Latin America plans to restructure through bankruptcy and emerge a … Avianca Holdings SA, one of the biggest carriers in Latin America, filed for Chapter 11 bankruptcy after travel bans across the region forced the Colombian airline to ground its fleet. Don't miss industry news. The novel coronavirus has led countries around the world to impose strict travel restrictions, causing demand for air travel to plummet. LATAM, a Avianca and it’s partner United on the ramp at Washington Dulles A post shared by Ned Russell (@airbus777) on May 11, 2020 at 6:11am PDTWhen Avianca restarts flights, it plans to focus on its operations in Colombia and Central America. Bogotá-based Avianca became the largest airline to restructure under court protection since the outbreak of the coronavirus. It plans to negotiate further fleet reductions with leasing companies and lenders.The move will consolidate LATAM Airlines’ dominance in Peru. The company filed for But Avianca’s bankruptcy should not be read as a sign that the airline industry has no future. The numbers include 10 Embraer E190s that it parked at the end of December.Initially, the carrier is seeking court authority to reject leases on 14 jets: two Airbus A319s, seven Airbus A320s, two Airbus A321s, two Airbus A330-300s and one Boeing 787-8, a filing on Monday shows. “The situation is extremely fragile as the recession starts to take its toll.”Other airline restructurings include Virgin Australia and Avianca’s restructuring plan is multi-fold. Avianca Holdings filed for bankruptcy on Sunday as the airline industry continues to take a hit under coronavirus travel restrictions.
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