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Avianca has not scheduled regular passenger flights since the end of March, and laid off most of its 20,000 unpaid employees during the crisis.
“Avianca is facing the biggest crisis in our 100-year history,” said Anko van der Werw, Avianca’s chief executive.
While the company has already been experiencing financial crises, the bankruptcy highlights the challenges facing airlines that cannot rely on government bailouts or upcoming bailouts quickly enough.
“This is not a surprise at all,” said Juan David Palin, chief economist at the Casa de Paulsa Brokerage in Bogotá. “The company was heavily indebted despite trying to restructure its debt last year.”
Avianca is the second oldest continuously operating airline in the world after KLM Netherlands, and suffered $ 7.3 billion debt in 2019.
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The Colombian government did not respond to demands by Avianca, the world’s second-oldest airline, for material aid, to officially declare bankruptcy on Sunday.
If it fails to emerge from bankruptcy, Bogota-based Avianca will be one of the first major airlines in the world to “deteriorate” as a result of the “Covid-19” epidemic, which paralyzed world travel.
Avianca has not scheduled regular passenger flights since the end of March, and laid off most of its 20,000 unpaid employees during the crisis.
“Avianca is facing the biggest crisis in our 100-year history,” said Anko van der Werw, Avianca’s chief executive.
While the company has already been experiencing financial crises, the bankruptcy highlights the challenges facing airlines that cannot rely on government bailouts or upcoming bailouts quickly enough.
“This is not a surprise at all,” said Juan David Palin, chief economist at the Casa de Paulsa Brokerage in Bogotá. “The company was heavily indebted despite trying to restructure its debt last year.”
Avianca is the second oldest continuously operating airline in the world after KLM Netherlands, and suffered $ 7.3 billion debt in 2019.
