Avianca files Ch.11

[eolesen]

One of the oldest names left in the industry. I did a lot of work with them about 12 years ago... sad to see their situation get to this point, but they won't be the last one we see go into our bankruptcy equivalency before the end of the year.

https://www.prnewswire.com/news-rel...ary-reorganization-proceedings-301056305.html

BOGOTA, Colombia, May 10, 2020 /PRNewswire/ -- Avianca Holdings S.A. (NYSE: AVH, BVC: PFAVH) (the "Company" or "Avianca") and certain of its subsidiaries and affiliates today filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York to preserve and reorganize Avianca's businesses. LifeMiles™, Avianca's loyalty program, is administered by a separate company and is not part of the Chapter 11 filing.

The filing was necessitated by the unforeseeable impact of the COVID-19 pandemic, which has resulted in a 90% decline in global passenger traffic and is expected to reduce industry revenues worldwide by $314 billion, according to the International Air Transport Association. Avianca's scheduled passenger operations have been grounded since mid-March, reducing its consolidated revenue by over 80% and placing significant pressure on its cash reserves.

 

[jimntx]

It's a little scary how fast some of these lines are going down. They must have been operating on a ledge for some time. As you said, we are going to see more of this before it gets better.

 

[swamt]

Yes jim. And I read yesterday where an analyst predicts one of the "big" airlines will go bankrupt this year. Never gave a name or even hinted any further than "one of the biggie airlines". So we will see.
I would have to also agree with you on some were operating on a ledge for some time. Either that, or, they may just be filing early to stop the bleeding sooner.

 

[jimntx]

Yes jim. And I read yesterday where an analyst predicts one of the "big" airlines will go bankrupt this year. Never gave a name or even hinted any further than "one of the biggie airlines". So we will see.
I would have to also agree with you on some were operating on a ledge for some time. Either that, or, they may just be filing early to stop the bleeding sooner.

Actually, it wasn't an analyst who predicted the BK of one of the big airlines. It was the CEO of Boeing!!!!

http://www.airlineforums.com/threads/boeing-ceo-says-1-u-s-airline-to-fold-this-year.62961/