- Jul 23, 2003
One of the oldest names left in the industry. I did a lot of work with them about 12 years ago... sad to see their situation get to this point, but they won't be the last one we see go into our bankruptcy equivalency before the end of the year.
BOGOTA, Colombia, May 10, 2020 /PRNewswire/ -- Avianca Holdings S.A. (NYSE: AVH, BVC: PFAVH) (the "Company" or "Avianca") and certain of its subsidiaries and affiliates today filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York to preserve and reorganize Avianca's businesses. LifeMiles™, Avianca's loyalty program, is administered by a separate company and is not part of the Chapter 11 filing.
The filing was necessitated by the unforeseeable impact of the COVID-19 pandemic, which has resulted in a 90% decline in global passenger traffic and is expected to reduce industry revenues worldwide by $314 billion, according to the International Air Transport Association. Avianca's scheduled passenger operations have been grounded since mid-March, reducing its consolidated revenue by over 80% and placing significant pressure on its cash reserves.