The Logistician
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt
No Result
View All Result
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt
No Result
View All Result
The Logistician
No Result
View All Result
Home Mode Air

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.

14/05/2020
in Air, Technology
Hãng hàng không Avianca đệ đơn xin “bảo hộ phá sản”
0
SHARES
38
VIEWS
Share on FacebookShare on Twitter

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
Previous Post

Hai Phong-the container center is struggling

Next Post

Qatar sets airbridge connecting Vietnam, France

Related Posts

Thai Airways dự định cắt giảm 50% nhân sự trong 4 năm tới
Air

Thai Airways To Lay Off Half Its Staff In Next Four Years

03/03/2021
Korean Air sẽ sở hữu hạm đội máy bay A380 lớn thứ hai thế giới sau khi mua lại Asiana Airlines
Air

Korean Air’s Asiana Merger Will Create The Second Largest A380 Fleet

25/02/2021
VietJet Air sinh lời trong năm 2020 bất chấp dịch bệnh
Air

How VietJet Air Turned A Profit In 2020 Despite The Global Pandemic

03/02/2021
Nga khôi phục đường bay với Ấn Độ, Qatar, Phần Lan và Việt Nam
Air

Russia Reopens To India, Qatar, Finland, and Vietnam

29/01/2021
Các hãng hàng không Canada tập trung đầu tư vào vận tải hàng hóa
Air

Canadian airlines invest in more freighter capacity as demand for space rises

19/01/2021
Mức cước hàng không giảm vào đầu năm 2021 do kỳ vọng vào một mùa cao điểm không có thật
Air

Airfreight rates start 2021 on a decline following mediocre peak

17/01/2021

PHỔ BIẾN

Tại sao container rơi xuống biển và ai sẽ là người chịu trách nhiệm? Phần 2: Truy cứu trách nhiệm

Why do containership stacks collapse and who is liable?- Part 2: Legal liability

20/06/2020
Tình trạng khan hiếm container đang trở nên nghiêm trọng ở khu vực châu Á

Container Availability drops across Asia prior to Shipping Peak

17/09/2020
A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

22/05/2020
Vietnam Airlines sẽ bay quốc tế từ 1/7

Vietnam Airlines plans to re-operate international flights from July 1st

12/06/2020

NỔI BẬT

HMM Names World’s Largest Container Vessel, ‘HMM Algeciras’

HMM Names World’s Largest Container Vessel, ‘HMM Algeciras’

27/04/2020
Tình trạng thiếu nguồn cung thịt ở Hoa Kỳ có thể kéo dài và thực trạng thị trường thịt tại Việt Nam

COVID-19 Meat Shortages In The U.S. Could Last For Months and the situation of Vietnam meat market

20/05/2020
Máy bay thương mại có vô lăng tay lái không?

Do Commercial Passenger Planes Have A Steering Wheel?

01/06/2020
Thai Airways hứng chịu khoản nợ gần 3 tỉ đô và không có khả năng chi trả

Thai Airways Has Defaulted On Nearly $3 Billion Worth Of Debt

27/07/2020
  • Home
  • Mode
  • Industry
  • Technology
  • Library
  • Contact us
  • Tiếng ViệtTiếng Việt
Email: info@logistician.org

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

No Result
View All Result
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt

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