Colombian airline Avianca files for bankruptcy
Colombia's national airline, Avianca, has got filed for bankruptcy security in a US court.
The carrier may be the second-largest in Latin America, but its passenger operations have been grounded since March as a result of coronavirus.
It said the pandemic had slice more than 80% of its salary, and it was struggling with high fixed costs.
If it does not come out of bankruptcy, Avianca is definitely the first important airline to go under amid the pandemic.
In a statement, the strong said it had filed for Chapter 11 bankruptcy coverage in a court in New York. The procedure postpones a US company's obligations to its creditors, giving it period to reorganise its debts or sell off elements of the business.
Leader Anko van der Werff said the move was had a need to ensure the brand new York-listed airline emerge as a "better, better airline that operates for most more years".
A lot more than 140 of its aircraft have been grounded since Colombian President Ivan Duque closed the country's airspace in March. Most of its 20,000 workers have been put on unpaid leave.
Behind KLM, Avianca is the second-longest continually functioning airline in the world.
It previously filed for bankruptcy in the first 2000s, and was rescued by a manage Bolivian essential oil tycoon German Efromovich. The airline grew quickly under his stewardship, but its growing debt led to an effective boardroom coup against Mr Efromovich this past year. It is now run by Kingsland Holdings.
The coronavirus pandemic has dealt a huge blow to the international aviation industry, as governments impose travel restrictions and confinement measures.
Global air travel has fallen by 90%, in line with the Overseas Air Transport Association. Your body predicts Latin American airlines will lose $15bn (£12bn; €13.9bn) found in revenues this season - the biggest drop found in the industry's history.
