Avianca, one of Latin America’s largest airlines, has filed for Chapter 11 bankruptcy reorganization. 

The Colombia-based carrier also said it would wind down operations in Peru.

Avianca’s fleet has been grounded since March 25, due in large part to the closure of borders in its operating bases in Central America and South America.

The carrier, a member of the Star Alliance, served 76 destinations in 27 countries prior to the Covid-19 crisis. Avianca has more than 21,000 active and furloughed employees. 

During the bankruptcy process, customers will still be able to use tickets, vouchers and gift cards as usual. Bookings, mileage accruals and mileage redemptions will continue. Avianca also said it expects to continue to issue refunds. 

Avianca entered the Covid-19 crisis on weaker footing than many global carriers. Last year it initiated its “Avianca 2021” restructuring plan, which included a network redesign, the launch of a new pricing model, reprofiling of debt and lease obligations and the raising of $375 million in new financing. 


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