Avianca Holdings obtained confirmation by a court of USA of a reorganization plan with which it hopes to exit Chapter 11 of the Bankruptcy Law before the end of the year, the airline reported Tuesday.
The business plan approved by Avianca It covers all the axes of its operation, including the destinations it will serve, the planes it will operate and the way the airline will serve its customers.
In addition, it will seek to strengthen a lower cost structure to offer better prices to customers, while allowing the growth of the airline’s operation in new markets and driving the continued expansion of the cargo business, the company said in a statement. .
Avianca filed for Chapter 11 in May 2020 in a restructuring process in which it received about $ 2 billion in new financing.
In this way, the airline hopes to successfully complete this process and emerge from Chapter 11 before the end of the year as a financially stronger and more efficient airline, solidly positioned to guarantee its long-term success, “the statement said.
“With Avianca’s exit from Chapter 11, the Company will have a solid balance sheet, with significantly less debt and more than $ 1 billion of liquidity,” he added.
The business plan will allow you to Avianca have a route network with a fleet of more than 130 aircraft to serve more than 200 point-to-point routes in Latin America by 2025, as travel demand fully recovers.
“Looking to the future, with a more solid financial base, Avianca will be better positioned to capture the demand for travel in recovery, with a value proposition that meets the needs of the current customer in Latin America and the world,” said the president of Avianca, Adrian Neuhauser, quoted in the statement.
Avianca and LATAM Airlines Group underwent restructuring under the Chapter 11 of the United States Bankruptcy Law when the coronavirus pandemic hit the airline sector due to mobility restrictions that were especially harsh in Latin America.
kg
Reference-www.eleconomista.com.mx