Avianca Is Back: Reorganization Plan Approved!

Avianca is one of the oldest airlines in the world, founded in December 1919, 101 years ago. The airline is the national carrier of Columbia and is in the Star Alliance. Sadly, due to the COVID-19 pandemic, the airline was forced to file for Chapter 11 bankruptcy on May 10, 2020 and began forming a reorganization plan. Flights still operated regularly during this period.

Yesterday, the US Court approved their new plan and will begin enforcement shortly, so they can get out of debt and bankruptcy. The airline will do so by cutting around 15% of their fleet and other methods in order to reduce operating costs.

“During the Confirmation Hearing, the Court requested that the Avianca (AVHOQ) debtors, as well as certain other parties, produce additional documentation. After reviewing the additional documentation, the Court announced today the confirmation of the Plan. The effective date of the Plan is expected to take place during Q4 2021,” the company stated.

Image: © Pexels

© 2021 Planeopedia
Written by: Sohail Sawlani
No copyright infringement intended.