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Avianca, Latin American’s Second Largest Airline, Files For Chapter 11 Bankruptcy Protection

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Avianca, together with its subsidiaries and affiliated companies has filed a voluntary petition today under Chapter 11 of the United States Bankruptcy Law to seek protection and reorganization to Avianca ’s business. The pandemic caused a 90% drop in global passenger traffic and is expected to reduce global aviation industry revenue by $ 314 billion. Avianca ’s loyalty program LifeMiles ™ is managed by another company and is not part of the submission in Chapter 11. The Chapter 11 process is a well-established legal process in the United States of America that is recognized by other countries around the world. The process is a temporary one that, according to U.S. law, allows a company to reorganize and complete a financial restructuring under the supervision of the U.S. court system, while continuing its operations under the oversight of its board of directors and management team.
Avianca ATR-72
Avianca ATR-72

According to the International Air Transport Association, the COVID-19 pandemic has unforeseen effects, so it is necessary for Avianca to submit this document. Since mid-March, Avianca ’s scheduled passenger business has been grounded, which has reduced its consolidated revenue by more than 80% and has put tremendous pressure on cash reserves.

Avianca A320 Takeoff
Avianca A320 Takeoff

Through this reorganisation process, Avianca stated in a press release that it intends to:

  • Protect and preserve operations so Avianca can continue to operate and serve customers with safe and reliable air travel, under the strictest biosafety protocols, as COVID-19 travel restrictions are gradually lifted; 
  • Ensure connectivity and drive investment and tourism by continuing as Colombia’s flagship airline, serving over 50% of the domestic market in Colombia and providing essential non-stop service across South America, North America and European markets as well as continuing cargo operations, playing a key role in the economic recovery of Colombia and the Company’s other core markets following the COVID-19 pandemic; 
  • Preserve jobs in Colombia and other markets where the Company operates, with Avianca directly responsible for more than 21,000 jobs throughout Latin America, including more than 14,000 in Colombia, and working with more than 3,000 vendors; and 
  • Restructure the Company’s balance sheet and obligations to enable Avianca to navigate the effects of the COVID-19 pandemic as well as comprehensively address liabilities, leases, aircraft orders and other commitments.

“Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic,” said Anko van der Werff, Chief Executive Officer of Avianca. “Despite the positive results yielded by our ‘Avianca 2021’ plan, we believe that, in the face of a complete grounding of our passenger fleet and a recovery that will be gradual, entering into this process is a necessary step to address our financial challenges.”

“When government-mandated air travel restrictions are lifted and we are able to gradually resume our passenger flights, we look forward to welcoming back our furloughed employees and playing a leading role in restarting the economy in Colombia and our other key markets. We greatly appreciate the dedication of our employees to Avianca and to serving the more than 30 million passengers that fly our airline each year. We remain committed to our purpose to connect people, families and businesses. Our customers can be confident that they can continue to depend on Avianca for safe, reliable and high-quality service, and our valued LifeMiles™ members can expect to accrue and redeem miles as normal, ”

Mr. Van der Werff

Avianca Airlines is seeking financial support from governments that provide basic essential services just like many other airlines in the world right now. Avianca continues discussions with the Colombian government as well as those from its ket markets, discussing that the financing structure will provide more liquidity through the Chapter 11 process and play an important role in ensuring that the company stands out from the courts-supervising restructuring, and continue to be a competitive and successful carrier in Americas. During the interim period, the company intends to use the cash on hand and capital generated from its ongoing business such as cargo to support the business during the court-supervised reorganization process.

Avianca A330-f Cargo
Avianca A330-F Cargo

“We believe that a reorganization under Chapter 11 is the best path forward to protect the essential air travel and air transport services that we provide across Colombia and other markets throughout Latin America. Avianca has operated for more than 100 years – only the second airline in the world to achieve this milestone. We are confident that through this process we can continue to execute our ‘Avianca 2021’ plan, optimize our capital structure and fleet of aircraft and – with government support – emerge as a better, more efficient airline that operates for many more years.”

Mr. Van der Wilf

Avianca has presented various motions in court to request authority to introduce measures in protecting its employees and suppliers, Avianca is also planning to maintain its network and customer programs throughout this process and customers can expect to continue to arrange travel and fly with Avianca in the same way they always have. Avianca also expects to continue to issue ticket refunds and honour travel coupons and payments or credits associated with baggage or service claims in adherence with its current policies. Given the impact COVID-19 has had on travel plans, Avianca will continue to waive change fees and other penalties associated with changes to customers’ travel plans for tickets purchased until October 31, 2020. When COVID-19 travel restrictions are lifted, Avianca plans to resume passenger flights with the strictest biosafety protocols.

Avianca B787
Avianca B787

Albert K. Field Albert is my name, and travel the world is my game. I began my passion for travel at a very young age, I started this website as a strong means to further explore the world of frequent flyers programs (FFP). The relationship between customers and service providers in the aviation and hospitality industry always seems to be in opposition, however, since the introduction of United Airlines’ Frequent Flyers Programm since 1972*. This has significantly eased the middle spectrum between 2 parties. While the aim of airlines is still to generate more revenue; but for us,as consumers, are also given the opportunity to participate in the bargaining and exploiting from service providers. Living in a world of globalization where big data becomes vital for simulating successful economical activities, most of us will have to travel to other locations whether willingly or unwillingly, while you hearing all this fascinating stories about others, In fact, you too, can blend into the trend. It may not sound like how media illustrates, but indeed there are possibilities for us to have more spontaneous travel without getting held back by financial situation. My website consists of reviews of airline premium cabin products,airport lounges and stay reports of 5-star hotels and their executive lounges across the globe. In addition to all of that, I care the most about their frequent flyers program and loyalty program, which also includes banking partners. Plus, I spontaneously put up reviews and news update regarding premium water brands and restaurants. The purpose of this website is to share all of this information with my audience as well as inviting you to be part of my journey.

1 Comment

1 Comment

  1. BRASILIAN GOD

    May 11, 2020 at 9:17 am

    COVID-19 takes another one down

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Route Network

SAS To Double Its Capacity In June

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Parked SAS Fleet
As more and more countries are easing travel restrictions, SAS, the flag carrier of 3 nordic countries which has cancelled nearly all flights since March, has released a statement in which it will join a growing number of its European counterparts to resume flights to several destinations from June onwards. These routes are primarily domestic flights within and between the Scandinavian countries, with flights to New York, Chicago and Amsterdam from Copenhagen are also set to resume. Scandinavian Airlines’ decision on resuming flights and adding existing service frequencies in all three countries means that SAS is set to double its capacity in June, increasing from having the equivalent of 15 aircraft in service to 30.

SAS has taken a number of measures to ensure your safety and well-being on board.
SAS has taken a number of measures to ensure your safety and well-being on board.

From Copenhagen, SAS is resuming international flights to Amsterdam, New York and Chicago.

SAS has already restored all of its domestic destinations in Norway, it will now add two more Norwegian destinations to Copenhagen from Bergen and Stavanger and one of its strategic oil route from Stavanger to Aberdeen.

In Sweden, SAS is adding four domestic destinations from Arlanda; Malmö, Ängelholm, Kalmar and Skellefteå. SAS is also resuming 2 international routes from Stockholm to Helsinki and Turku, in Finland.



Date of resumptionRoutes
From 1 JuneARN-SFTStockholm – Skellefteå
From 2 JuneCPH-AARCopenhagen – Aarhus
From 8 JuneCPH-AMSCopenhagen – Amsterdam
CPH-BGOCopenhagen –  Bergen
CPH-SVGCopenhagen – Stavanger
SVG-ABZStavanger – Aberdeen
ARN-HELStockholm – Helsinki
ARN-TKUStockholm – Turku
ARN-MMXStockholm – Malmö
ARN-KLRStockholm – Kalmar
From 10 JuneCPH-EWRCopenhagen – New York
CPH-ORDCopenhagen – Chicago
From 15 JuneARN-AGHStockholm – Ängelholm

Updates To SAS Traffic Operation, June 2020

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Route Network

Aegean Airlines Gradually Resumes Flights With Limited International Frequencies

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Aegean Airlines A320 Fleet
Greece has entered the third phase of “unlocking” this week, and domestic and international flights have gradually returned. Aegean Airlines issued a statement on May 18, announcing a series of measures and flexible ticketing policies. Aegean Airlines’ president said in an interview that the company suffered serious losses due to the COVID-19 pandemic. This year may be the worst year in the company’s history. At present, Aegean Airlines has resumed flights between the main mainland and Crete, and other islands will resume flights in the next few weeks. In terms of international flights, Aegean Airlines will first resume round-trip flights between Athens and Munich, Frankfurt, Geneva and Zurich, and increased frequencies for their only non-suspended route to Brussels.

Aegean Airlines A320
Aegean Airlines A320

AEGEAN, a Star Alliance member airline, has been maintaining all domestic destinations with limited frequency flight service since 26 March, in an effort to facilitate minimum essential for the island’s needs and a small number of weekly flights from Athens to Brussels in order to maintain the country’s connectivity with the EU’s administrative centre.

Aegean Airlines also operated numerous humanitarian cargo flights for medical and pharmaceutical supplies transportation from China to Greece and Cyprus, in cooperation with the relevant authorities, the airline has operated repatriation flights from various international destinations. 


AEGEAN gradually adds frequencies on domestic network

Following the gradual ease of travel restrictions within Greece and entry regulations to other European countries gradually to be announced, AEGEAN will be enhancing connectivity in its domestic network.

As of May 18th, AEGEAN will be gradually increasing capacity to Heraklion, Chania, Thessaloniki and Alexandroupolis, while additional frequencies will be added to Rhodes, Corfu, Mytilene, Chios, Samos and other domestic destinations, as of May 25th.   


AEGEAN will gradually restore international operations

By the end of May, AEGEAN will gradually restore international operations to some major European destinations. In particular, AEGEAN plans to restart operations from its Athens hub to Munich, Zurich, Frankfurt and Geneva, initially within a limited frequency. At the same time, more flights will be operated to Brussels, which is the only international destination that hasn’t been suspended. 



AEGEAN is willing to gradually restore its network with extreme cautiousness, as stated in the airline’s press statement. While fully respecting the tremendous national effort to control the COVID-19 outbreak within the country, Aegean Airlines’ utmost priority is still to assist authorities in developing relevant health protocols for both passengers and crews.

AEGEAN has already enhanced the increased precautionary measures while boarding and during a flight in preparation for the resumption of flight services, including the mandatory use of a mask during flight, alongside the aircraft cleaning and disinfection processes, and is in close cooperation with the relevant authorities in order to implement additional safety measures with respect to social distancing and sanitation, upon official announcements.


An Aegean Airlines Airbus A320neo in its brand new livery, Greece, May 11, 2020.
An Aegean Airlines Airbus A320neo in its brand new livery, Greece, May 11, 2020. Image Rights: REUTERS/Alkis Konstantinidis

Board Chairman of Aegean Airlines Eftychios Vassilakis told Reuters during an interview stated that Aegean Airlines “burns” 40 million euros every month, and the fixed expenses only cost 25 million euros per month. “The company” burns money “in order to continue flying. Vasilakis said that during the crisis, the Greek government provided financial support to Aegean Airlines. As “You cannot afford to be one of the very few airlines in Europe that have not been helped.” But he did not specify the form and details of the funding.

By the end of the year, AEGEAN will be operating its whole fleet with 65 planes, including the first 6 Airbus A320/321neo aircraft, making it one of the youngest fleet in Europe. Vasilyakis also said that Aegean will be resuming 25% before July and 50% before September, under a best-case scenario,

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