Colombia

Latin American countries should quicken steps for airlines to renew domestic flights no later than July before more companies are forced to declare bankruptcy or close, a high-ranking official of the International Air Transport Association (IATA) said on Thursday, Reuters reported. The trade group estimated losses for airlines in Latin America at $4 billion this year, with total losses for the industry expected to reach $84 billion globally. Latin America has imposed stricter travel restrictions than most regions to fight coronavirus.

Shares of Avianca Holdings Inc fell sharply on the Bogota stock exchange on Tuesday after a New York court approved initial motions in the Colombia-based airline’s bankruptcy case, Reuters reported. Many airlines have been forced to suspend flights since March in the wake of quarantine measures to slow the spread of the novel coronavirus. Avianca filed for Chapter 11 bankruptcy protection in New York on Sunday after failing to meet a bond payment deadline and as its pleas for assistance from Colombia’s government over the coronavirus crisis were met with a tepid response.

Avianca Holdings SA expects the Colombian government to play a key role in its restructuring efforts after widespread travel bans forced it to declare bankruptcy, according to court documents, Bloomberg News reported. Latin America’s second-largest air carrier, which filed for Chapter 11 protection Sunday, said that due to its importance in the Colombian domestic air travel network, the government “may be one of the key stakeholders” as it reorganizes.

Avianca Holdings, Latin America’s second-largest airline, filed for bankruptcy on Sunday, after failing to meet a bond payment deadline, while its pleas for coronavirus aid from Colombia’s government have so far been unsuccessful, Reuters reported. If it fails to come out of bankruptcy, Bogota-based Avianca would be one of the first major carriers worldwide to go under as a result of the pandemic, which has crippled world travel. Avianca has not flown a regularly scheduled passenger flight since late March and most of its 20,000 employees have gone without pay through the crisis.

The number of companies filing for protection under Colombia’s insolvency law could nearly double in the coming months because of fall-out from its coronavirus lockdown, the head of the country’s companies regulator said, Reuters reported. The Superintendency of Companies has modified insolvency rules, which allow debtors to renegotiate their obligations with creditors so they can continue operating and avoid bankruptcy.

Colombian flag carrier Avianca Holdings is making progress with a restructuring plan for its finances that will keep it in the air without having to take measures such as declaring bankruptcy or insolvency, company executives said on Wednesday. Over the course of the restructuring, which began last year, the company will divest its non‐core activities and simplify its fleet to improve profits and leave behind a financial crisis that arose in 2019, Reuters reported. “The company’s financial situation has turned 180 degrees.

Latin American airline Avianca will look to increase the number of passengers it can fit into a plane without enlarging its fleet as part of its efforts to overcome ongoing financial problems, its chief executive said on Thursday, Reuters reported. A video was released on social media this week showing president of the board Roberto Kriete telling employees that the airline was “broke.” The airline said the video was obtained illegally and denied that it was in a bankruptcy or insolvency process.

Avianca Holdings SA plunged to a record low after the Colombia-based airline’s chairman was seen in a leaked internal video telling employees that the company is “bankrupt,” Bloomberg News reported. The stock dropped as much as 15% in Bogota trading before paring losses. Kriete was trying to reiterate to employees the urgency of getting back to profitability, said Carlos Enrique Rodriguez, head of equity research at Bogota-based brokerage Ultraserfinco.

Avianca was a failing airline with 37 outdated planes when German Efromovich purchased it out of bankruptcy in 2004. Over 15 years the Bolivian businessman built it into a regional powerhouse as Latin America’s second-largest carrier. But for all its success, the Bogota-based company is now back on a rocky foundation, Bloomberg News reported. Its stock price is down by almost 75% since it went public in 2011 and its bonds are trading in distressed territory amid concerns it will struggle to refinance debt. Avianca’s first-quarter loss was the biggest since 2015.