Colombian airline Avianca filed for bankruptcy in the Southern District of New York on Sunday, following financial difficulty during the COVID-19 pandemic.
The second largest airline in Latin America, Avianca has been grounded since March amidst regulations set out by the president, resulting in more than 20,000 jobs under threat of furloughed leave. The company that generated a revenue of $4.6 bn in 2019 has lost 80 percent of their income and struggles to remain standing during the global pandemic. Avianca has now filed for a Chapter 11 bankruptcy protection in New York courts.
According to the International Transport Association, global air travel has fallen by 90 percent globally since the COVID-19 outbreak, with an estimation that Latin American airlines will lose $15 bn of revenues as a result. Avianca stated this was the biggest challenge in their 100 year history and the measure was a “necessary step to address [their] financial challenges.”
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