Avianca Files For Bankruptcy - Avianca Peru Ceases Operations

Avianca has filed for Chapter 11 Bankruptcy Reorginization



By filing for Chapter 11 Bankruptcy, Avianca will plans to:

  • Protect and preserve operations
  • Ensure connectivity and boost investment and tourism
  • Preserve jobs in Colombia
  • Restructure the company’s balance sheet and obligations

The airline has an estimated debt of $1 billion to $10 billion in a filing with the U.S. Bankruptcy Court.

Avianca CEO Anko van der Werf:

“Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic. Despite the positive results yielded by our ‘Avianca 2021’ plan, we believe that, in the face of a complete grounding of our passenger fleet and a recovery that will be gradual, entering into this process is a necessary step to address our financial challenges.”

As part of this announcement, Avianca Peru, a subsidiary of the Avianca, will liquidate and cease operations.

Latin America’s second-largest airline is continuing to discuss with the government of Columbia, as well as planning to increase its liquidity through Chapter 11 Reorginization.

Details on their restructuring plan:

  • Ending leases on two Airbus A319s, seven Airbus A320s, two Airbus A321s, two Airbus A330-300s and one Boeing 787-8
  • Once flights resume, plans to focus on Colombia and Central America
  • Initially start with domestic Colombian flights, followed by Central America, followed by intercontinental flights to North America/Europe

Avianca has created a site called “aviancawillkeeponflying.com

Sources/Images

https://www.prnewswire.com/news-releases/avianca-holdings-initiates-voluntary-reorganization-proceedings-301056305.html
https://www.reuters.com/article/us-avianca-holding-bankruptcy/colombias-avianca-airline-files-for-bankruptcy-over-coronavirus-impact-idUSKBN22M0N1
https://gestion.pe/economia/empresas/coronavirus-avianca-cierra-operaciones-en-peru-cual-sera-el-futuro-de-sus-trabajadores-tras-proceso-de-quiebra-nndc-noticia/

https://thepointsguy.com/news/avianca-bankruptcy-will-fly-again/

Image: https://www.airliners.net/photo/Avianca/Airbus-A320-251N/5295545/L

Unfortunately, this crisis will continue to cause airlines to wind down their operations and potentially go bankrupt.

Avianca recenty celebrated 100 years of flying late last year. Thankfully, this isn’t the end of Avianca.

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Avianca of which country? Or all of the Aviancas?

@Altaria55 omg

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Uh oh, @Altaria55 won’t like this

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The number of airlines that have filed for bankruptcy because of this pandemic makes me sad :(

I really hope all the airlines could pull through this difficult time

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All airline subsidaries, Peru, Costa Rica, El Salvador, etc.

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It is really sad…, this means other major airlines will take over and flying will only be for the rich ones again :(

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wow… it a tough time… on the bright side they are trying to reconstruct and strengthen the airline through these times. They are not liquidating, they are reconstructing. Lets hope someone funds them!!!

Oh boy, the grim reaper of the aviation world strikes again… is that twice in the same week? Because of Miami Air? This sucks, I always liked Avianca’s livery.

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it does not mean you will not see them flying agian… they just need help reconstructing ( at least I think)

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They would probably need to be bailed out by the government, and they will probably cease operations if they can’t get a loan.

Oh no…

And my condolences @Altaria55

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😬 I don’t like where this is going at all.

Uhh oh.

@Altaria55 won’t like this.

Credit to @anon79257371

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@Altaria55 I’m so sorry

In all seriousness, Avianca is a huge airline in South America and too see them go is another loss to the already fragile aviation industry. I hope they will survive otherwise it will make hundreds of thousands unemployed throughout South America.

No this can’t be real! 😢😢 I’m really sad for you @Altaria55! I was going to join Avianca Virtual! Like I’m so sad!

Man I’ve flown this airline over 10+ times man. It’s hard to take in.

How that you were. If a real Airline flies for bankruptcy, good thing that his IF Counterpart will not do the same, right @Altaria55?


Una gran aerolínea reconocida por su gran calidad en vuelo, espero que resurjan como el ave Fénix!
#aviancawillkeeponflying!

No no no no no no no no no no no no NOOOOOOOOOOOOO

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Avianca Virtual Group will not be shutting down regardless of the outcome

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