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World's second oldest airline Avianca still allowed to fly after filing bankruptcy

Avianca Holdings is allowed to continue operations after filing for Chapter 11 restructuring before the US Bankruptcy Court for the Southern District of New York.
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In a report from Ch-Aviation, the orders that the court has granted to the Panama-based group to operate under normal business conditions throughout the restructuring process. This enables Avianca to pay certain employee benefits and wages, honor obligations to travel agencies, suppliers, and maintain operational continuity.

Avianca also clarified that "Customers can continue to arrange travel and fly with Avianca in the same way they always have."

Avianca Airlines and its affiliated carriers, such as Avianca Costa Rica, Avianca Ecuador, Aviateca Guatemala, El Salvador's TACA International Airlines, Honduras' Isleña Airlines, Mexican cargo carrier AeroUnion, and Colombia's TAMPA Cargo, will continue to operate for the duration of the Chapter 11 proceedings.

However, the group is commencing the liquidation of its subsidiary Avianca Peru, allowing the airline to renew its core market focus.

Avianca continues to see support from governments in countries where it operates.

"The Chapter 11 process is a responsible way for Avianca to protect and preserve the company as we navigate the severe impact of Covid-19 on the airline and travel industries," Avianca CEO Anko van der Werff said.

Avianca is the flag carrier of Colombia and is the world's second oldest airline after KLM. It began operations in December 5, 1919, making it a century old.

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