The Logistician
  • Tiếng ViệtTiếng Việt
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Login
  • Register
No Result
View All Result
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
VIẾT BLOG
  • Tiếng ViệtTiếng Việt
  • Login
  • Register
No Result
View All Result
The Logistician
No Result
View All Result

Avianca Declares Bankruptcy – What’s Next For The Colombian Airline?

On May 10th, Avianca filed for Chapter 11 Bankruptcy in the United States. This is the second time in Avianca’s history that the Colombian airline files for Chapter 11. But now, what does it mean for the airline? What does it mean for the passengers? What does it mean for Colombia, and how did we come to this? Let’s investigate further.

Dandelion by Dandelion
14/05/2020
in Blog
Hãng hàng không Avianca đệ đơn xin “bảo hộ phá sản”

The airline has not gone bust

First and foremost: Avianca will continue to fly. As Anko van der Werff, Avianca’s CEO, said “this is not an insolvency proceeding. Avianca operations will continue during and after [Chapter 11].”  The airline launched a new website called aviancawillkeeponflying.com

The procedure is one of the most used by airlines in the US. American Airlines did it in 2011; Air Canada filed for it in 2003. Delta Air Lines and United Airlines also used Chapter 11 during the current century. All of these airlines have come back stronger than ever after filing for it.

And what is Chapter 11?

It is a legal procedure that allows a company to reorganize and complete a financial restructuring under the supervision of the justice system in the US. At the same time, the company continues its operation.

“We are sure that Chapter 11 will allow us to execute our “Avianca 2021” plan. We will optimize our capital structure and our fleet, and, with the Government support, we will emerge as a better and more efficient airline that will operate for many more years,” said Anko van der Werff.

If you’re a passenger, what now?

Don’t fall into panic. Avianca will continue flying, once the airspaces in South America are open again. As of 10 May, 88% of the countries were Avianca flies had partial o total restrictions to commercial aviation.

Although Avianca will cancel some routes in the near future, it is too soon to know which ones. Van der Werff added that the second phase of this Chapter 11 includes the redesign of the company and its route map.

What we know for sure is that the airline will reduce its operation in Peru. Avianca had already decided this previous to yesterday’s announcement. It will allow focusing on its main markets, Avianca said.

Meanwhile, Avianca will continue its operations in Colombia, mainly from its hub in Bogota. It has a share of over 50% of the domestic market in Colombia. Additionally, it provides jobs to over 14,000 people in the country.

How did we get here?

In 2019, Avianca got new management. Consequently, the carrier got rid of its former owner, German Efromovich, and brought a new light under the support of United Airlines. Avianca presented its “Avianca 2021” plan and let go of some of its older aircraft.

At the same time, it launched a new regional carrier, increased its frequencies to several destinations including Brazil, and signed a new codeshare with TAP Air Portugal.

But all this movement had a cost. In 2019, Avianca had one-off costs of $894 million. It saw a 5.50% decrease in its earnings, and the number of investors came to an all-decade low. According to La Republica, in December 2010, the number of stakeholders was 47,554, while in December 2019, it was 9,373.

As the carrier stated, the plan was going well. But then the current crisis hit and shook Avianca to its core. As the oldest airline in Latin America and the second most important after LATAM, the region cannot lose Avianca. It would be the most significant blow to commercial aviation in Latin America.

What do you think will happen with Avianca? Let us know in the comments.

Source: SimpleFlying
Tags: Airlineaviancabankruptcycolombiacovid19

Related Posts

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

​​Shell and CMA CGM signed an agreement to supply LNG fuel in Singapore

01/07/2022
0
Private: TP Hồ Chí Minh xem xét chuyển đổi mục đích sử dụng một số khu công nghiệp sang logistics

Ho Chi Minh City considers converting some industrial parks into logistics

29/06/2022
0
Image: Thu Trang

DB Schenker’s agreement to acquire USA Truck

28/06/2022
0
Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

Finding new suppliers after the unprecedented “Chicken-rice crisis” in Singapore

22/06/2022
0
FedEx invests in FourKites to build intelligent supply chain platform

FedEx invests in FourKites to build intelligent supply chain platform

22/06/2022
0
LG Electronics “shake hand” with CJ Logistics to develop logistics robots

LG Electronics “shake hand” with CJ Logistics to develop logistics robots

19/06/2022
0

ĐỀ XUẤT NÊN ĐỌC

SEKO Logistics and plans to become a priority partner of Amazon

SEKO Logistics and plans to become a priority partner of Amazon

10 months ago
0
Valencia to build a new container terminal in the next 10 years

Valencia to build a new container terminal in the next 10 years

3 years ago
0
Bamboo Airways được cấp slot bay thẳng đến London

Bamboo Airways has been given permission to operate direct flight to London Heathrow airport (LHR)

2 years ago
0
Thị trường vận tải hàng không sắp sửa bước vào đợt cao điểm mới

Air cargo market ‘going crazy’ as carriers prepare for a tight peak season

3 years ago
0
ADVERTISEMENT

THẺ NỔI BẬT

ACQUISITIONaircraftAirlineairlinesamazonAppleblockchainBoeingchinaCMA CGMcontainerContainer shortageCovid-19covid19crisisDHLe-commerceEVFTAexportfedexgoodsinfrastructureInvestmentLNGlogisticsLogistics centerM&Amaerskportport congestionRAILWAYRussiaRussia-Ukraineseasupply chainSupply chain disruptiontechnologyThai AirwaysthailandtransportusvietnamVietnam AirlineswalmartWarehouse
ADVERTISEMENT

TIN TỨC PHỔ BIẾN

  • Uniqlo Supply Chain Management

    Uniqlo Supply Chain Management

    0 shares
    Share 0 Tweet 0
  • Certificates that advance your career in Logistics and supply chain management

    0 shares
    Share 0 Tweet 0
  • How Aviation Fuel Differs From Regular Fuel

    0 shares
    Share 0 Tweet 0
  • Cross-docking: The key to Walmart’s great success

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube RSS
The Logistician

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

  • Login
  • Sign Up
  • What to read today?
  • Knowledge
  • Insight
  • Podcast
  • Blog
  • Document
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

-
00:00
00:00

Danh sách

Update Required Flash plugin
-
00:00
00:00