Published 12:02 IST, May 11th 2020
Avianca airlines enters turbulence as revenues crash; seeks government protection
The airline said it is in conversations about assistance with governments in countries where it operates, particularly Colombia, its home base.
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One of Latin America’s largest airlines filed for Chapter 11 bankruptcy protection Sunday in New York, saying the COVID-19 pandemic has devastated its business.
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Revenues crash, government protection to the rescue
Avianca Holdings said in a statement that the move is aimed at continuing operations and preserving jobs when it is able to resume normal opeations following a global health emergency that has grounded 90% of global air traffic. It said its own consolidated revenues had been slashed by 80%.
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“The effects of the COVID-19 have brought us to face the most challenging crisis of our 100 years history as a company,” said Anko van der Werff, CEO of Avianca Holdings.
The airline said it is in conversations about assistance with governments in countries where it operates, particularly Colombia, its home base.
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The airline says it carries 30 million passengers a year and is direclty or indirectly responsible for 21,000 jos in Latin America, incliuding 14,000 in Colombia.
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12:02 IST, May 11th 2020