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Source: Reuters Insider

Description: Latin America's second-largest airline, Avianca Holdings, filed
for bankruptcy on Sunday after failing to meet a bond payment deadline, while
its pleas for coronavirus aid from Colombia's government have so far been
unsuccessful. Libby Hogan reports.
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Video Transcript:

 Latin America’s second largest airline Avianca filed for bankruptcy on
Sunday after failing to meet a bond payment deadline. Its pleas for aid from
Colombia’s government have so far gone unheard. And on Sunday, the
airline’s CEO Anko van der Werff announced the news.

Avianca is facing the most unprecedented event in its 100-year history. Our
directors and the executive team analyzed many other possibilities. We
concluded that a reorganization protected under Chapter 11 bankruptcy is the
best path.

If it fails to come out of bankruptcy, the Bogota-based airline would be one
of the first major carriers worldwide to go under as a result of the global
health crisis. The airline has not flown a regularly scheduled passenger
flight since late March and most of its 20,000 employees have gone without pay
during the lockdown period. Avianca, the second oldest continually operating
airline in the world, was already struggling financially prior to the crisis.
It went through bankruptcy once in the early 200s, and in 2019 it had racked
up over $7 billion in debts. United Airlines also stands to lose up to $700
million in loans related to Avianca. The airline’s bankruptcy filing
highlights the challenges for airlines that cannot count on state rescues or
on such rescues coming fast enough