Avianca Gets Court Approval for Reorganization Plan, Plans to Exit Chapter 11 by End of 2021
Avianca has announced the confirmation of the company’s reorganization plan by the New York Southern District court, with which the airline plans to complete its Chapter 11 exit before the end of the year.
Rohit Philip, Chief Financial Officer of Avianca, said: “We are delighted to have reached this important milestone which will allow us to emerge as a stronger organization to fly for many years to come. The financial and operational progress that we have already made so far demonstrates the tenacity and commitment of the entire Avianca team, of which I am very proud for their hard work.
As a result, the Company will have a solid balance sheet, reduced debt and more than $ 1 billion in liquidity that will allow it to continue to position itself and simplify its activity, in addition to developing the refinancing of its planes and its long-term obligations.
“On behalf of all of us at Avianca, we thank our customers, partners and financiers for their continued support. Thanks to the judge for his careful and responsible work during this process. Going forward, with a stronger financial base, Avianca will be better positioned to capture demand for recovery travel, 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 heritage of over 100 years, with the best attributes the low-cost world has to offer while maintaining our focus on safety and service, ”said Adrian Neuhauser, President and CEO of Avianca.
Business plan :
The airline’s business plan includes all aspects of its operation, including the destinations it will serve, the aircraft it will operate and how it will serve its customers.
In this way, the business plan will allow Avianca to be a stable and economically viable airline, to have a more solid network of connections with a passenger fleet of more than 130 aircraft, to strengthen a cost structure reduced to offer better prices and to continue the growth of the Cargo and Loyalty activities.
Avianca’s new vision
During the year 2021, the company made significant progress in its new vision in three key areas: strengthening its road network, redesigning its product and improving its services.
More robust road network: The company announced 23 new point-to-point routes in strategic markets by 2022, including Colombia, El Salvador, Guatemala and Costa Rica. Avianca plans to operate over 100 new routes over the next three years.
Reconfigure your fleet, add more seats to offer more competitive prices and increase the number of customers. The capacity of each aircraft will be increased by up to 20%.
Fly “tailor-made”: more flexibility for customers to plan their flights, so they only pay for what they really need.
A more attractive LifeMiles program: Launch of a new model for earning miles with many other benefits for travelers who are part of Avianca’s loyalty program.
Better self-service alternatives: Strengthening of online customer service, the “Vianca” chat service and digital channels so that customers can more easily manage their travel from the Avianca mobile application and website.