Avianca submits reorganisation plan to US bankruptcy court

Avianca has submitted a reorganisation plan to a US bankruptcy court. The Bogota-based airline’s plan, submitted to the bankruptcy court for the Southern District of New York on 10 August, outlines its obligations to creditors and the settlement of claims. It says a new strategy will help it simplify operations and position Avianca to thrive in the Latin American market. “Avianca expects to build on its core strengths, including its strong operational performance, increased capacity, brand recognition, its market leadership position in the vibrant Latin American airline market, optionality with more point-to-point routes, its membership in Star Alliance and the strength of its LifeMiles programme, while becoming a more cost-efficient airline, in order to emerge from these Chapter 11 cases as an elite competitor for years to come,” the airline says. Avianca and its Latin American peers Aeromexico and LATAM Airlines declared bankruptcy last year after the coronavirus decimated global air travel demand. Airlines shrunk networks, retired and stored aircraft, and laid off staff in an effort to preserve cash.<br/>