Colombian courts throw a major wrench into Avianca’s restructuring
Back in May-2020 when Colombia’s largest airline and one of South America’s largest operators Avianca filed for Chapter 11 bankruptcy protection, CAPA concluded that it would be hard to fathom that Colombia would let its flag carrier simply disappear.
Eventually, Colombia’s government did step up and offer Avianca a USD370 million loan that would be part of a larger financing package for the airline. But the government’s support has now been temporarily suspended after a court challenge, creating new uncertainty for Avianca in its restructuring process.
The latest development occurs just as Colombia’s commercial aviation industry is getting started again, and as flights slowly restart, Avianca remains the country’s largest operator by a solid margin.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.