News / Avianca goes into Chapter 11, but air freight services will continue

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Avianca has joined airlines like South African Airways and Virgin Australia in seeking to significantly restructure – or end – its business.

It has initiated proceedings under Chapter 11 of the US bankruptcy code, “necessitated by the unforeseeable impact of the Covid-19 pandemic, which has resulted in a 90% decline in global passenger traffic and is expected to reduce industry revenues worldwide by $314bn”.

The Bogota-headquartered carrier grounded its passenger operations mid-March, cutting revenue by more than 80% and “placing significant pressure on ...