Home » Business » Avianca files for bankruptcy: 100-year-old airline faces corona bankruptcy

Avianca files for bankruptcy: 100-year-old airline faces corona bankruptcy

Avianca has been flying since 1919, and now one of the world’s oldest airlines is threatened by the corona pandemic. Income has fallen by more than 80 percent, says the CEO and speaks of the “biggest challenge in 100-year history”.

The Colombian airline Avianca has filed for bankruptcy due to the massive drop in sales as a result of the Corona crisis. The holding company and several subsidiaries applied for bankruptcy protection under Chapter 11 of the US bankruptcy law, the airline said. The aim is to continue operations, to preserve jobs and to reorganize economically.

Due to the travel restrictions in the rampant Corona pandemic, Avianca had to largely cease regular operations in mid-March. The revenue then fell by more than 80 percent, the airline said. “The impact of the pandemic presents us with the greatest challenge in the 100-year history of our company,” said CEO Anko van der Werff.

According to the Financial Times, Avianca transported more than 30 million passengers last year. The majority of the approximately 21,000 employees are therefore on short-time work due to the corona virus. “This process is necessary to solve our financial problems,” said van der Werff. According to the report, the airline repeatedly fought against bankruptcy. Last year, the long-time owner Germán Efromovich was forced out of the company, which is now controlled by a holding company, which in turn belongs to United Airlines.

Avianca is one of the most important airlines in Latin America. It flies to numerous destinations in the region, North America and Europe. Recently there was also a direct connection from Bogotá to Munich. Avianca’s predecessor company was founded in 1919 as a Colombian-German Air Transport Company by a German emigrant. This makes Avianca one of the oldest airlines in the world and the airline with the longest uninterrupted flight operations.

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