- The Colombian company, which has been standing since mid-March, has lost more than 80% of its profits, according to reports. In this way, he has chosen to take advantage of the bankruptcy laws of the United States to set in motion a "reorganization" that will allow his 21,000 jobs to be maintained in Latin America.
The coronavirus crisis has paralysed more than 90% of air traffic and the benefit of the air transport industry is expected to decrease by EUR 289,863 million. Avianca is a clear example of this, as it has lost more than 80% of its profits, "significant pressure on its liquidity", according to the company.
Avianca intends to use the U.S. Economic Bankruptcy Law “to protect and maintain operations and offer its customers safe and reliable travel, always with the aim of smoothing the measures against COVID-19 and with strict biosecurity protocols.”
He has used the word "reorganization" to define the company's activity after the crisis. In fact, the company intends to focus on the domestic transport of Colombia, with 50% of the domestic market services of the country. In this way, it wants to maintain the jobs of 21,000 people, of which 14,000 will be in Colombia.