Colombian Avianca Files for Bankruptcy due to Covid-19

Colombian airline Avianca has voluntarily filed for the bankruptcy code of the United States, in the bankruptcy court of the southern district of New York, due to the “unforeseeable” impact of the Covid-19 pandemic, as reported in a statement. . It is the second largest airline in Latin America.

“Taking advantage of this process was necessary due to the unpredictable impact of the Covid-19 pandemic, which has caused a 90% decrease in global passenger traffic and is expected to reduce worldwide industry revenues by $ 314 billion. (289,863 million euros), according to the International Air Transport Association (Iata), “the company explained.

The airline notes that regular passenger operations have been on the ground since mid-March, which has reduced its revenue by more than 80% and has put “significant pressure on its liquidity.”

Avianca highlights that through this action it intends to preserve jobs in Colombia and other markets in which it operates, since the airline is responsible for more than 21,000 direct and indirect jobs in Latin America, including more than 14,000 in Colombia. He also notes that this is how he intends to restructure the company’s balance sheet and obligations to face the effects of the Covid-19 pandemic, as well as “manage its responsibilities, leases, aircraft orders and other commitments.”

It also aims to ensure connectivity and boost investment and tourism, providing services to more than 50% of the internal market in Colombia and an “essential non-stop” service throughout South America, North America and European markets, in addition to continue loading operations.

“We greatly appreciate the commitment of our collaborators who have been serving the more than 30 million passengers who fly with us each year. Our purpose continues to be to connect individuals, families and companies”

The CEO of the company, Anko Van der Werff, stressed that despite the positive results of the ‘Avianca 2021’ plan, given the total suspension of passenger operations and a gradual recovery, entering this process is “one step necessary “to meet financial challenges.

Along these lines, Van der Werff has affirmed that when the restrictions by governments for air travel are lifted and passenger flights can be gradually resumed, they hope “to contribute to the revival of the economy in Colombia and in other key markets”, in addition to reinstating its employees.

“We greatly appreciate the commitment of our collaborators who have been at the service of the more than 30 million passengers who fly with us every year. Our purpose continues to be to connect individuals, families and companies,” he added. The company has also stated that it is continuing talks with governments seeking financial support to successfully complete the process.

 

 

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Colombian Avianca Files for Bankruptcy due to Covid-19 - /10

Summary

Colombian airline Avianca has voluntarily filed for the bankruptcy code of the United States, in the bankruptcy court of the southern district of New York, due to the "unforeseeable" impact of the Covid-19 pandemic, as reported in a statement. . It is the second largest airline in Latin America.

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