Aviation
Commercial /
Americas
revitalized
Avianca announces its departure from Chapter 11, the equivalent of Brazilian judicial reorganization
Rafael Ramos
12/2/2021
After 18 months, Colombian Avianca announced that it is leaving Chapter 11 of the United States, the equivalent of Brazilian judicial recovery. The company has undergone a thorough restructuring, reduced its debt and has more than $1 billion in liquidity.
The company should have 200 routes in America by 2024, almost double its network. Most of these routes must be point-to-point. The company still hopes to have a fleet of more than 130 aircraft by the end of 2025, which should be more efficient aircraft, helping to reduce its carbon footprint and improve sustainability.
The process that took place in 2019 was one of the most turbulent it has gone through, but it reached agreements with its creditors and raised more than 1.7 billion dollars in investment. The company's restructuring plan includes the renegotiation of aircraft lease contracts and the dismissal of employees.
"We look forward to the Company's future success as we continue to build on Avianca's rich history in Latin America and internationally. (...) I am confident that we are well positioned to be a highly competitive and successful carrier," according to the CEO, Adrian Neuhauser.
Avianca will invest more than 200 million dollars to renew the seats of its Airbus A320 fleet in three new classes, Premium, Plus and Economy. The aircraft of choice for long-haul routes is the Boeing 787 Dreamliner.
“This is an important day for Avianca. We are pleased to emerge from this process successfully, with a company in a stronger financial position that will continue to serve all of its customers and fly for many years to come,” said Rohit Philip, Chief Financial Officer of Avianca.
Airbus A320
Avianca
Stevenhe1997, CC BY-SA 4.0, via Wikimedia Commons
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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