World’s second oldest airline files for bankruptcy

Colombian airline Avianca, the world’s second oldest airline have filed for bankruptcy amid Corona virus pandemic across the globe.

According to a statement by the company, Avianca will be operational during the bankruptcy process.

Avianca airline said filing for bankruptcy was to protect and preserve operations” during the Covid -19 pandemic.

“Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic,” Avianca CEO Anko van der Werff said

The airline had earlier called in the Colombian government for financial assistance. Avianca claimed that upto 90% of the countries they operate in are either on lockdown or travel restrictions.

Over 140 of its airline have been grounded and most of its workers placed on unpaid leave since Colombian President Ivan Duque closed the country’s airspace in March

Avianca is the third largest airline in Latin America based on market share and employs over 21000 people throughout Latin America.