COVID-19 - Bankruptcy Declared by Avianca the World’s Second Oldest Airline

- May 14, 2020

COVID-19 - Bankruptcy Declared by Avianca
the World’s Second Oldest Airline:

The future of the second oldest airline and the flag bearer of Columbia since 5 December 1919 files for bankruptcy after the hit from the pandemic.

The rich history of Avianca dates back to the 20th century when it was founded by the merger between SCADTA (Sociedad Colombo Alemana de Transportes Aéreos)and SACO (Servicio Aéreo Colombiano). Soon the influence of Avianca became global, with the joint ventures with the Grace Shipping Company in 1928 to frame Panagra; this joint endeavor began to order nearnessinside Latin America with routes in key cross-continent cities. By the midway point of the last century the aircraft got things started in Europe with various new courses. Lisbon, Paris and Rome were adjusted by 1950, giving Avianca a significantly more prominent worldwide presence.

Aviancas global reach made it a proud member of the leading alliance of airlines, Star Alliance. Avianca stood strong with 106 aircrafts serving 114 destinations with its headquarters at El Dorado International Airport in Bogota. After 100 successful years of flying, Avianca was hit with the worst losses it had faced in those 100 years of successful operations. Avianca, one of Miami International Airport’s busiest carriers filed for Chapter 11 bankruptcy (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) in the US Southern District of New York on the 10th of May, 2020. To protect 21,000 jobs throughout the Latin America, Avianca filed for bankruptcy, the pandemic had cut more than 80% of its income and it was struggling with the high fixed costs.

Covid-19 shook Avianca to its core. It will be a major hit to commercial aviation in Latin America. As the most established carrier in Latin America and the second generally significant after LATAM, the region can't lose Avianca.

Will Avianca be the major unfortunate casualty of Covid-19?