Avianca airlines enters turbulence as revenues crash; seeks government protection

One of Latin America’s largest airlines filed for Chapter 11 bankruptcy protection Sunday in New York, saying the COVID-19 pandemic has devastated its business.

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Revenues crash, government protection to the rescue

Avianca Holdings said in a statement that the move is aimed at continuing operations and preserving jobs when it is able to resume normal opeations following a global health emergency that has grounded 90% of global air traffic. It said its own consolidated revenues had been slashed by 80%.

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“The effects of the COVID-19 have brought us to face the most challenging crisis of our 100 years history as a company,” said Anko van der Werff, CEO of Avianca Holdings.

The airline said it is in conversations about assistance with governments in countries where it operates, particularly Colombia, its home base.

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The airline says it carries 30 million passengers a year and is direclty or indirectly responsible for 21,000 jos in Latin America, incliuding 14,000 in Colombia.

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