MIAMI – Colombian flag carrier Avianca (AV) has filed a Board-of-directors-approved reorganization plan, along with a disclosure statement, with the Bankruptcy Court for the Southern District of New York as it moves ahead in its Chapter 11 process.
The plan presented is the result of negotiations held with investors and other concerned parties.
The reorganization plan is meant to satisfy pre-bankruptcy obligations to creditors with the disclosure statement gives a description of the terms of the plan and the consequent approval process.
The filing is considered by AV as “an important milestone” while the airline moves towards “a successful completion of the financial and operational restructuring.” AV has also secured capital in the amount of US$1.6bn as a financial means to exit Chapter 11 protection.
Within the plan, stand out a significant advance in the repositioning and simplification of the business process, more competitive pricing for customers along with a continuing fleet reconfiguration action. Also mentioned by AV is the expansion of the network and routes both in the domestic and international sectors with the goal to establish AV as “the most robust airline in Latin America.”"We know our customers want more destinations and more frequencies." Manuel Ambriz, AV CCO Click To Tweet
Large Network Expansion
On this subject, AV has announced the opening of 23 new routes starting from now and onto 2022 that add up with the six already opened during 2021. Important growth resulting from these openings is expected in Colombia, Ecuador, Costa Rica, Guatemala, and El Salvador.
Colombia will see 13 new destinations connecting the country with the world: Cali (CLO) to New York (JFK), Cancun (CUN), Mexico City (MEX), San José of Costa Rica (SJO), and Quito (UIO). Medellin (MDE) will be connected to Aruba (AUA), MEX, Orlando (MCO) with a direct flight, SJC, UIO, and Guayaquil (GYE). New services will connect Bucaramanga (BGA) to Miami (MIA) and a direct flight from Bogota (BOG) to Toronto (YYZ).
Ecuador will be linked to the US and Colombia, with more direct flights from UIO to JFK, MIA, CLO, and MDE as well as from GYE to JFK, MIA, and MDE. Costa Rica will also enjoy new flights from SJO to Managua (MGA), Los Angeles (LAX), JFK, MEX, CLO, and MDE while Guatemala City (GUA) will be only four hours away from the US capital city with a direct flight to Washington (IAD).
The network expansion was commented on by Manuel Ambriz, AV CCO, “Launching these 23 new routes shows that we wish to continue growing in a sustainable way and that we have the firm purpose of continuing to be the airline with the most robust route network in our region.”
Ambriz went on in his comments by saying, “We know our customers want more destinations and more frequencies. We are adapting our offer to provide our customers what they really value: competitive prices, tailor-made products, the best network, and trustworthiness in the service.”
Featured image: Avianca Boeing 787-8 Dreamliner N793AV. Photo: Lorenzo Giacobbo/Airways