Avianca announced the confirmation of the Company’s Plan of Reorganization by the Southern District Court of New York, with which the airline expects to complete its exit from Chapter 11 before the end of the year.
2011133211102000000000002Rohit Philip, Avianca’s Chief Financial Officer, said: «We are pleased to have reached this important milestone that will allow us to emerge as a stronger organization to fly for many years to come. The financial and operational progress we have already achieved so far demonstrates the tenacity and commitment of the entire Avianca team, of which I am very proud for their hard work.
As a result, the Company will have a solid balance sheet, less debt, and more than USD1 billion of liquidity that will allow it to continue positioning and simplifying its business, in addition to developing the refinancing of its aircraft and long-term obligations.
«On behalf of all of us at Avianca, we thank our customers, partners, and financiers for their ongoing support. Thank you to the Judge for his thorough and responsible work during this process. Going forward, with a stronger financial foundation, Avianca will be better positioned to capture the demand for recovery travel, with a value proposition that meets the needs of today’s customers in Latin America and around the world. Today we are a company that combines a legacy of more than 100 years, with the best attributes the low-cost world has to offer while maintaining our focus on safety and service,» said Adrian Neuhauser, president, and CEO of Avianca.
Business Plan:
The airline’s business plan includes all the aspects of its operation, including the destinations it will serve, the aircraft it will operate, and how it will serve its customers.
In this way, the Business Plan will enable Avianca to be a stable and economically viable airline, have a more robust route network with a passenger fleet of more than 130 aircraft, strengthen a leaner cost structure to offer better prices, and drive continued growth in the Cargo and Loyalty businesses.
Avianca’s new vision
Over the course of 2021, the company has made significant progress on its new vision in three key areas: strengthening its route network, redesigning its product, and improving its services.
More robust route network: The company announced 23 new point-to-point routes in strategic markets by 2022, including Colombia, El Salvador, Guatemala, and Costa Rica. Avianca plans to operate more than 100 new routes over the next three years.
Reconfiguring its fleet, adding more seats to offer more competitive prices and increase the number of customers. The capacity of each aircraft will be increased by up to 20%.
Fly ‘Tailor-Made’: more flexibility for customers to plan their flights, so they only pay for what they really need.
A more attractive LifeMiles program: Launch of a new mileage accrual model with many more benefits for travelers who are part of Avianca’s loyalty program.
Better self-service alternatives: Strengthening online customer service, «Vianca» chat service and digital channels so that customers can manage their trip more easily from Avianca’s mobile application and website.
