New York court approves reorganization of Avianca

Avianca announced its confirmation of the airline’s reorganization plan by the Southern District Court in New York, through which the airline hopes to complete its Chapter 11 exit before the end of the year, Reported to our partner Aviacionline.

In this regard, Rohit Philip, Chief Financial Officer of Avianca said: “We are pleased to have reached this important milestone that will allow us to emerge as a stronger aviation organization for many years to come. The financial and operational progress we have made to date demonstrate the perseverance and commitment of the entire Avianca team, of which I am proud of the great effort”.

As a result, the company will have a strong balance sheet, lower debt and more than $1 billion in liquidity, which will allow it to continue positioning itself and streamline its business, as well as develop long-term aircraft refinancing.

“On behalf of all of us, we are part of Avianca, we thank our customers, partners, and financiers for their continued support. We thank Judge for his careful and responsible work throughout this process. Looking ahead, with a stronger financial base, Avianca will be in a better position to capture demand for recovery flights, With a value proposition that meets the needs of today’s customers in Latin America and around the world. Today we are a company that combines a legacy spanning over 100 years, with the best attributes that a low-cost world has to offer, while maintaining our focus on safety and service”said Adrian Neuhauser, President and CEO of Avianca.

Action Plan

The airline’s business plan includes all axes of its work, including the destinations it will serve, the aircraft it will operate on, and how it will serve its customers.

In this way, the business plan will allow Avianca to be a stable and economically viable airline, have a more robust air network with a passenger fleet of over 130 aircraft, strengthen its low cost structure to offer better fares and foster continued growth of the freight and loyalty business.

Seeing Avianca’s new

Throughout 2021, the company has significantly developed its new vision in three main areas: strengthening the road network, redesigning products and improving service.

More robust road network: Announcing 23 new point-to-point routes in strategic markets by 2022, including Colombia, El Salvador, Guatemala and Costa Rica. Consequently, Avianca plans to run over 100 new tracks over the next three years.

Reconfigure your fleet: Adding more seats to offer more competitive rates and increase the number of customers will increase the capacity of each aircraft by up to 20%.

“Fly your scale”: More flexibility for customers to plan their trips so they only pay for what they really need.

LifeMiles is more attractive: Launch of a new mileage accrual model with many additional benefits for travelers who are part of the Avianca loyalty programme.

Best Self-Service Alternatives: service enhancement OnlineChat service and digital channels so that the customer can manage their journey more easily from the mobile app and Avianca website.