Issued on 14 May 20
One more airline filing for Chapter 11, a Latin American operator Avianca is voluntarily filing for Chapter 11 bankruptcy protection with a New York court, to give the company time to re-organize its business. Avianca Holdings said the filing request, with the Southern District of New York bankruptcy court, is “necessary” given the “unpredictable impact” of the coronavirus crisis on its operations.
As part of its recover plan shut down its Peruvian division, and cut
back the fleet of other carriers. Closing the Peruvian operation will allow Avianca to “renew its focus on core markets” once the restructuring is complete. Avianca had been operating a 156-jet fleet — including 143 passengers and 13 cargo aircraft — plus 15 turboprops at the end of 2019. The company said it had started a comprehensive review of the fleet including the suitability of individual aircraft to the Bogota hub which, while still underway, is likely to result in its returning excess aircraft to lessors and lenders. 14 aircraft — none of which are freighters – are listed as excess in its initial filing, including a Boeing 787-8 and two Airbus A330-300s operated by Avianca. The other 11 aircraft are single-aisle jets — seven A320s, two A321s, and two A319s – from the fleets of Avianca, Avianca Ecuador, and Taca.