Colombia’s flagship Avianca has officially left Chapter 11 after the United States Court for the Southern District of New York approved the airline’s reorganization plan, and that includes over US$1 billion in liquidity and significantly reduced debt. After 18 months in the hands of creditors, Avianca’s departure from Chapter 11 enables the carrier to continue simplifying its business model, reconfiguring aircraft and expanding its extensive domestic and international route network. Among the new destinations is Toronto, Canada, with a direct service from Bogotá starting December 3.
“We are pleased to have reached this critical milestone and look forward to emerging as a stronger organization that is well positioned to fly the skies for many years to come,” stated the company’s Chief Financial Officer Rohit Philip. “The financial and operational progress we have already achieved are a testament to the tenacity and commitment of the entire Avianca team, and I am proud of their tremendous efforts” he added.
Adrian Neuhauser, President and Chief Executive Officer of Avianca, said: “On behalf of everyone at Avianca, I want to express our gratitude to our loyal customers, partners, and lenders for their continued support. I especially want to thank Judge Glenn for his thoughtful and responsible oversight of the process.”
Avianca’s streamlined business model involves a commercial fleet of more than 130 aircraft, and planned network expansion within three years to more than 200 destinations. The 101-year-old airline also foresees growth of its air cargo operations and loyalty business program LifeMiles. Among the changes to its corporate structure, the New York court approved Avianca Holdings changing its name to Avianca Group International and registering its domicile in the United Kingdom. Bogotá will continue to be the seat of the airline’s corporate headquarters.