12/05/1919: Avianca Is Established in 1919
Today in Aviation, Colombian flag carrier Avianca, the second-oldest airline in the world, was registered under the name SCADTA in 1919.
Today in Aviation, Colombian flag carrier Avianca, the second-oldest airline in the world, was registered under the name SCADTA in 1919.
DALLAS — Today in Aviation, Colombian flag carrier Avianca (AV), the second-oldest airline in the world, was registered under the name SCADTA in 1919.
Avianca is the flagship of a group of Latin American airlines whose operations are merged in a codesharing arrangement to operate as one company. The carrier is headquartered in Bogotá, D.C., and its main hub is El Dorado International Airport (BOG).
Colombian businessmen and German immigrants in Barranquilla, Colombia, founded AV on December 5, 1919.
The Colombo-German Group Sociedad Colombo-Alemana de Transportes Aéreos, or SCADTA, was founded by the Colombians Ernesto Cortissoz Alvarez-Correa (First Airline President), Rafael Palacio, Cristóbal Restrepo, Jacobo Correa and Aristides Noguera, and the Germans Werner Kämerer, Stuart Hosie, and Albert Teitjen.
The newly-formed airline completed its maiden flight using a Junkers F.13, carrying 57 pieces of mail, between Barranquilla and the nearby town of Puerto Colombia. Helmuth von Krohn, a German, piloted the flight.
The Junkers F.13 and other aircraft of the same type were entirely mechanically built monoplanes whose engines had to be changed to function effectively in the country's environment.
German scientist and philanthropist Peter von Bauer became involved soon after the airline was established and contributed general knowledge, capital, and a tenth aircraft to the venture. He also secured concessions from the Colombian government to run the airmail transport division of the country using the airline, which started in 1922.
This new contract allowed SCADTA to flourish on a new aviation frontier. Its first international routes began in the mid-1920s, including destinations in Venezuela and the United States.
In the late 1930s, as the world moved closer to war, SCADTA became a source of concern for the US government over security implications due to the airline's ties to Germany. Such concerns dwindled when Pan American World Airways later purchased a majority interest in the South American carrier.
After WWII, AV began flights to Quito, Lima, Panama City, Miami, New York City, and Europe in 1946, using Douglas DC-4s and C-54 Skymasters. In 1951, AV acquired the Lockheed 749 Constellations and 1049 Super Constellations. The carrier would merge with fellow Colombian airline SACO (Servicio Aéreo Colombiano) in 1949 to adopt its current name.
To increase its fleet, the airline leased two Boeing 707 aircraft in 1961 to service international routes. Av then purchased its own Boeing 720s on November 2, 1961.
Avianca became the first Latin American airline to fly a Boeing 747 continuously in 1976. It began operations with another 747 three years later, a Combi variant.
After some mergers and a disbanded alliance effort with SAM Colombia (MM) during the following decades, on December 10, 2004, AV filed for Chapter 11 bankruptcy protection.
With the protection in place, the carrier completed a significant reorganization, financially assisted by the Brazilian consortium, the OceanAir/Synergy Group, and the Colombian National Federation of Coffee Growers. This allowed the airline to receive US$63 million in funds over 13 months.
Under this strategy, Synergy Group purchased AV together with its subsidiaries OceanAir (O6) and VIP Ecuador (V6). The organization's full legal name was changed to Aerovías del Continente Americano (Airways of the American Continent) from Aerovías Nacionales de Colombia (National Airways of Colombia), retaining the acronym Avianca.
In 2009, the airline announced it would merge with TACA (TA). This created AviancaTaca Holdings with 129 aircraft and flights to more than 100 destinations, quickly becoming one of the region's largest carriers.
In November 2009, Fabio Villegas, the airline's chief executive, announced that AV was preparing to replace its Fokker 50 and Fokker 100 aircraft with newer airframes with a capacity of 100 or fewer seats. On January 1, 2011, AV agreed to remove its Fokker 100s and replace them with ten GECAS-leased Airbus A318 aircraft. The planes were delivered between February and April 2011.
On November 10, 2010, Star Alliance declared the full membership of AV (and its fusion equivalent, TACA) to be set for 2012. As a result, TACA terminated its codeshare agreement with Delta Air Lines (DL) due to its accession to the Alliance. Since 2006, TACA has been codesharing with United Airlines (UA) instead. AV and TACA were officially admitted into Star Alliance on June 21, 2012.
On May 28, 2013, TACA and all other airlines from AviancaTaca Holding changed their names to Avianca. At the Annual General Meeting on March 21, 2013, the shareholders decided to change the firm's name from AviancaTaca Holdings S.A. to Avianca Holdings S.A.
As of 2017, AV operated the second-most regular international flights from Miami International Airport (MIA) with 16 routes, second only to American Airlines (AA).
However, AV had some operational problems in August 2018 due to issues with the network it used to allocate its crew schedules. This resulted in several flights inside Colombia being canceled. Similarly, only in October 2018 were all flight itineraries managed by the airline restored due to the stoppage of ACDAC pilots in 2017.
In March 2019, AV introduced Regional Express Américas in Colombia. The new airline would operate short regional flights with ATR-72 aircraft. However, that same year, AV had substantial financial liabilities.
As a result, the carrier released more debt to cover short-term obligations and signed a debt swap on December 31, 2019. As a consequence of the COVID-19 pandemic, this lack of liquidity and the amount of debt rendered AV especially vulnerable to the cessation of the company.
On May 10, 2020, due to the pandemic, AV filed for Chapter 11 bankruptcy for the second time in its 100-year history; by the end of 2019, the airline had accrued a gross debt of US$7.3bn.
On May 10, 2020, AV and 23 associated debtors applied for Chapter 11 bankruptcy in the United States District Court after accumulating debts of US$7.3 billion.
In May 2022, AV announced it would take control of the Abra Group, the new owner of Viva Air Colombia (VH), Viva Air Peru (VV), and Gol Linhas Aéreas Inteligentes (G3)
Today, AV remains one of Latin America's largest airline companies, which, with its subsidiaries, offers a comprehensive network of destinations covering almost the entire continent.
Featured Image: SCADTA Junkers W 34 "Magdalena." Photo: Unknown author, Public domain, via Wikimedia Commons
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