Colombia’s Avianca airline files for bankruptcy over pandemic

Colombia’s Avianca filed for Chapter 11 bankruptcy in the US Sunday, saying coronavirus has presented it with the biggest challenge in its century-long history. In a filing to a bankruptcy court in New York, it said the measure was needed to ensure Avianca can “emerge as a better, more efficient airline that operates for many more years". “Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the Covid-19 pandemic,” said CE Anko van der Werff. “Entering into this process is a necessary step to address our financial challenges.” Avianca is second in size only to Chile’s Latam in Latin America and is the second-oldest airline in the world behind Dutch carrier KLM. It began life in the Colombian city of Barranquilla in 1919, just 16 years after the Wright brothers’ historic first flight. It carried over 30m passengers last year to 76 destinations in 27 countries in the Americas and Europe. It generated revenue of $4.6b in 2019 and employed 21,000 people, most of whom have been furloughed due to coronavirus. Avianca said its consolidated revenue has fallen by over 80% since its flights were grounded in mid-March. Since the pandemic hit, van der Werff has been campaigning for government help, saying the airline needs a state loan — not a full bailout — but that has not been forthcoming. Avianca had faced a $65m debt repayment this weekend.<br/>