AVIANCA parent files for bankruptcy

[NW Jim]

Avianca and its US subsidiary of the same name have filed for Chapter 11 bankruptcy protection in the United States to restructure up to $130 million in debt, a top official said.

The loss-making company will also cut some routes to cope with the effects of rising fuel prices, more expensive insurance premiums and falling demand, said Juan Emilio Posada, the head of Alianza Summa, which controls Avianca. Summa is owned 50-50 by Colombian conglomerate Valores Bavaria and the National Coffee Growers' Federation.

The airline . . . could cut some of its 3,000 staff, out of Summa's total 7,500, he said. The other airlines controlled by Summa, ACES and SAM, will not be seeking Chapter 11 protection, which allows companies to propose a restructuring plan to a US court while continuing to operate.

Avianca, which joined up with SAM and local rival ACES last year to form Summa, dominates aviation in Colombia, but has also been hit by a depreciation of the peso, which has pushed up fuel costs.

http://www.airlinequality.com/news/Avianca.htm

[Kit]

... in response to AVIANCA parent files for bankruptcy, posted by NW Jim on Mar 22, 2003

It is bad new, however I dont see how it affects Colombia bound folks out of NA. Those flights are quite hot and for sure money maker (at least flights out of Colombia) so if there are any flights they keep, those would be to US. Also bankruptcy does not mean a demise. They will restructure, cut forces, cut unprofitable flights (mostly to other SA countries) and that will be the end of it.

[colman]

... in response to AVIANCA parent files for bankruptcy, posted by NW Jim on Mar 22, 2003

United Airlines and Sears have been a fixture of big companies here in Chicago and both have major losses and may seek bankrupcy protection it seems that Avianca may be the next victim of the economic crisis that the world (both industrialized and developing countries) is suffering --Colman

[Pescador]

... in response to AVIANCA parent files for bankruptcy, posted by NW Jim on Mar 22, 2003


Avianca has good equipment, 757s , 767 , MD 80s and Air buses. I just noticed that the flights are fuller leaving Colombia than coming in. Wonder why? In fact the 767 I flew in on was only a third full. Nice if you are a passenger but bad if youre trying to make money off seat fares. Dont disclude American, United an USAir...seems most airlines need to be subsidized with all the stupid taxes that passengers have to pay. Almost a third of the ticket is for taxes now.

Also not to stir a hornets nest, but all the colombian women I talked to wouldnt seriously be interested in a man for marriage with more than 10 year age difference. If its more than that most likely the women want a fast ticket out of Colombia, and I heard that strait from the women themselves. Tengas una buena dia,

[Michael B]

... in response to AVIANCA parent files for bankruptcy, posted by NW Jim on Mar 22, 2003

They're flying the wrong planes and their maintenance costs are too high (ha ha)...according to the recent hijacking news story, in Cuba they are still using DC-3's. As somebody in the group discussing that incident observed: "This should tell you something, both about American engineering and Socialist economics".