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Avianca Airline Sees a Brand New Day: Steps Out of Bankruptcy

Avianca Airline
Written by Linda S. Hohnholz

Avianca Airline has been the flag carrier of Colombia since December 5, 1919. Today, the airline stepped out of Chapter 11 bankruptcy status.

After entering Chapter 11 on May 10, 2020, the company successfully achieved agreements with its creditors, raised fresh investments of $1.7 billion, and obtained approval for its plan of reorganization, emerging with a solid balance sheet, significantly reduced debt, and over $1 billion in liquidity.

Avianca has revamped its business model to be significantly more efficient, reaffirming its commitment to providing reliable and on-time service, combining a value proposition that includes the best attributes of low-cost airlines, while retaining key differentiators that allow it to be the most convenient travel alternative for millions of passengers in Latin America and the world. 

Looking ahead, Avianca will continue to strengthen its value proposition, adjusting its products and services to the needs of its customers.

As per the approved plan of reorganization, the new shareholders will invest in Avianca Group International Limited, a new holding company, which will be domiciled in the United Kingdom and will consolidate the group’s investments in all of its subsidiaries (including Aerovias del Continente Americano, its Colombian subsidiary, and TACA International, its Central American operation). The prior holding company, Avianca Holdings was domiciled in Panama.

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About the author

Linda S. Hohnholz

Linda Hohnholz has been the editor in chief for eTurboNews for many years.
She loves to write and pays great attention to details.
She is also in charge of all premium content and press releases.

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