Avianca ticket purchase in current financial climate
May 4, 20, 2:13 pm
#1
Original Poster
Join Date: Jan 2019
Posts: 21
Avianca ticket purchase in current financial climate
I'd really like to buy Christmas tickets on Avianca with the current prices (crazy low) but I'm not sure it's a good idea with Avianca's financial stability in question. There was one article saying that Avianca only has three months of liquidity. Well flights aren't reopening until June 1, and shutdown of all April and May flights represents two full months of that liquidity, and probably a third of March was in shutdown too.
Anyone have any opinions? Recommendations?
Anyone have any opinions? Recommendations?
May 5, 20, 1:49 am
#2
Join Date: Nov 2015
Programs: CM Gold / *A Gold
Posts: 56
I wouldn't spend a dime on Avianca given their shaken financial ground. They recently got chastised by Colombian president Duque for sending emails to Lifemile and Avianca travelers promoting a May ticket sale promo (Colombian airspace is closed for the foreseeable future). They are strapped for cash and I don't think they survive to make it to Christmas 2020. Hold on to your money.
May 5, 20, 7:14 pm
#3
Original Poster
Join Date: Jan 2019
Posts: 21
I wouldn't spend a dime on Avianca given their shaken financial ground. They recently got chastised by Colombian president Duque for sending emails to Lifemile and Avianca travelers promoting a May ticket sale promo (Colombian airspace is closed for the foreseeable future). They are strapped for cash and I don't think they survive to make it to Christmas 2020. Hold on to your money.
May 8, 20, 2:27 am
#5
Join Date: Nov 2015
Programs: CM Gold / *A Gold
Posts: 56
Thanks for the response. Appreciate the opinion. Didn't know that about Duque and the Lifemiles stuff. If he is criticizing them then it would imply that the ability to make a deal on a stimulus package (which has been rumored) might be hampered (although my Colombian wife says that bailouts are not very common in Colombia, especially to airlines...and there are plenty that will need it - Avianca of course, EasyFly, AirWingo, VivaAir, etc.)
May 8, 20, 5:47 am
#6
Join Date: Oct 2010
Location: Rio de Janeiro
Programs: AA / AV
Posts: 647
Avianca's situation, in regard to a bailout, is even more complicated than other airlines as they are an amalgamation of several central and south american airlines (El Salvador, Peru, Colombia, Ecuador, Guatemala, Honduras - and I'm probably forgetting others ...), which makes for a very difficult and complex negotiation without a clear path to receive help from poor and cash straped governments
May 9, 20, 1:16 am
#8
Join Date: Nov 2015
Programs: CM Gold / *A Gold
Posts: 56
Avianca's situation, in regard to a bailout, is even more complicated than other airlines as they are an amalgamation of several central and south american airlines (El Salvador, Peru, Colombia, Ecuador, Guatemala, Honduras - and I'm probably forgetting others ...), which makes for a very difficult and complex negotiation without a clear path to receive help from poor and cash straped governments
May 10, 20, 2:36 pm
#9
Join Date: Oct 2010
Location: Rio de Janeiro
Programs: AA / AV
Posts: 647
As has been reported in other threads at this forum, Avianca has filled for Chap. 11 bankruptcy, in New York:
https://www.reuters.com/article/us-a...-idUSKBN22M0N1
In principle, this does not affect Lifemiles, a different entity,
Avianca Brasil tried this path, but as Brazil lacks a robust reorganization legislation (such as Chap. 11 in the US) in the end it folded up for lack of agreement with their debt holders.
Let's hope this time is different ...
https://www.reuters.com/article/us-a...-idUSKBN22M0N1
In principle, this does not affect Lifemiles, a different entity,
Avianca Brasil tried this path, but as Brazil lacks a robust reorganization legislation (such as Chap. 11 in the US) in the end it folded up for lack of agreement with their debt holders.
Let's hope this time is different ...
