May 10, 2020, 5:36 pm
Last edit by: Tokyoite
As you can imagine, the COVID-19 pandemic continues to impact the travel industry, including airlines like Avianca. In light of these challenges, Avianca announced that it has initiated reorganization proceedings under Chapter 11 of the United States Bankruptcy Code. This is an important step for Avianca as it works to preserve jobs, promote the economic recovery of its core markets, and maintain connectivity and operations to continue its 100-year legacy of connecting you to the places and people that you love.
It’s important for you to know that Avianca plans to continue honoring the LifeMiles loyalty program, and has extended its frequent flyers’ Elite status through January 2022. Members will continue to earn miles on Avianca flights as well as redeem LifeMiles for Avianca tickets, or for tickets with Star Alliance and other air partners, as normal. Avianca expects tickets redeemed with miles will continue to be exempt from change penalty fees until October 2020. You can find more information on Avianca’s announcement at www.aviancawillkeeponflying.com.
Please keep in mind that LifeMiles is a separate business from Avianca. Our company has a strong financial position and our assets are well insulated from Avianca’s reorganization process. This news does not affect your member status, your miles balance or how we do business together.
LifeMiles is operating as normal, supported by our strong and growing coalition of more than 550 commercial partners and loyal member base – so you can remain confident in the value of, and ability to redeem, your miles today, tomorrow and beyond. You can continue to earn miles through your everyday purchases by using your LifeMiles credit card, and by shopping in our broad network of partners, which includes premier hotels, major car rental companies, popular restaurants, and other commercial establishments such as gas stations, supermarkets and leading apparel brands.
In addition, the miles you’ve earned are safe, ready to be redeemed whenever you’re ready to live them to the fullest – LifeMiles will not expire any miles between April 1, 2020, and December 31, 2020. I’d also emphasize that every accrual of miles extends the validity of all miles in your account for at least 12 months more. In this way, the best way for you to protect your miles is to keep earning more!
Moving forward, we understand you may have questions, and encourage you to take a look at the FAQ we have posted at www.LifeMilesNews.com.
Importantly, I want to thank you for your continued support and loyalty to LifeMiles. Our team is monitoring the COVID-19 situation closely and will be sure to share any additional updates with you. In the meantime, take care, and I look forward to helping you live your next adventure soon.
Sincerely,
Matt VincettLifeMiles Chief Executive Officer
It’s important for you to know that Avianca plans to continue honoring the LifeMiles loyalty program, and has extended its frequent flyers’ Elite status through January 2022. Members will continue to earn miles on Avianca flights as well as redeem LifeMiles for Avianca tickets, or for tickets with Star Alliance and other air partners, as normal. Avianca expects tickets redeemed with miles will continue to be exempt from change penalty fees until October 2020. You can find more information on Avianca’s announcement at www.aviancawillkeeponflying.com.
Please keep in mind that LifeMiles is a separate business from Avianca. Our company has a strong financial position and our assets are well insulated from Avianca’s reorganization process. This news does not affect your member status, your miles balance or how we do business together.
LifeMiles is operating as normal, supported by our strong and growing coalition of more than 550 commercial partners and loyal member base – so you can remain confident in the value of, and ability to redeem, your miles today, tomorrow and beyond. You can continue to earn miles through your everyday purchases by using your LifeMiles credit card, and by shopping in our broad network of partners, which includes premier hotels, major car rental companies, popular restaurants, and other commercial establishments such as gas stations, supermarkets and leading apparel brands.
In addition, the miles you’ve earned are safe, ready to be redeemed whenever you’re ready to live them to the fullest – LifeMiles will not expire any miles between April 1, 2020, and December 31, 2020. I’d also emphasize that every accrual of miles extends the validity of all miles in your account for at least 12 months more. In this way, the best way for you to protect your miles is to keep earning more!
Moving forward, we understand you may have questions, and encourage you to take a look at the FAQ we have posted at www.LifeMilesNews.com.
Importantly, I want to thank you for your continued support and loyalty to LifeMiles. Our team is monitoring the COVID-19 situation closely and will be sure to share any additional updates with you. In the meantime, take care, and I look forward to helping you live your next adventure soon.
Sincerely,
Matt VincettLifeMiles Chief Executive Officer
Avíanca files for bankruptcy
May 11, 2020, 1:24 am
#16
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,132
No it would not be safe as the operating airline is not required to honor the ticket issued by a carrier that cannot compensate them when they present the ticket to them after performing the flight.
May 11, 2020, 1:27 am
#17
Join Date: Oct 2011
Posts: 3,837
May 11, 2020, 4:15 am
#20
Join Date: Jan 2014
Posts: 133
Avianca can't legally give refunds now, even if they wanted to, now that they're in bankruptcy administration. This will take time in courts of course, and creditors higher in priority than you would have to approve payouts if such payouts would not leave them whole.
Last edited by randian; May 11, 2020 at 4:21 am
May 11, 2020, 5:03 am
#21
FlyerTalk Evangelist
Join Date: Nov 2004
Location: Denmark
Programs: TK Elite
Posts: 11,780
I seriously doubt other airlines/Star Alliance partners will accept tickets issued on AV/ 202 ticket stock - but let us see how this turns out.
Sad. But glad I didn't buy my domestic flights i CO yet.
Sad. But glad I didn't buy my domestic flights i CO yet.
May 11, 2020, 5:12 am
#22
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,132
Well, regular tickets issued so far are kind of insured via the IATA BSP so they are kind of secure. Of course at one point the bank guarantee at the BSP runs out, so then its toast.
May 11, 2020, 12:12 pm
#23
Join Date: Jul 2004
Location: Western PA
Programs: AA EXP/2MM
Posts: 441
You won't get a refund now, and neither will anyone else. At the moment the bankruptcy was filed, you and every other customer became unsecured creditors, in line after the employees, debtor-in-possession financing, bond holders, and priority unsecured debt. It is quite unlikely the unsecured creditors get a dime, and the bond holders will probably take losses too, in reverse priority order.
Avianca can't legally give refunds now, even if they wanted to, now that they're in bankruptcy administration. This will take time in courts of course, and creditors higher in priority than you would have to approve payouts if such payouts would not leave them whole.
Avianca can't legally give refunds now, even if they wanted to, now that they're in bankruptcy administration. This will take time in courts of course, and creditors higher in priority than you would have to approve payouts if such payouts would not leave them whole.
Understood and agreed --- and this is why bankruptcy laws should be changed to the EU/UK model and the airline should be put out of business. Why should customers lose while the CEO and directors get to keep their positions, their bonuses, and restart operations as if nothing ever happened?
I'm fortunate that the amount of the refund isn't a big deal to me financially, but I feel bad for people who are going to be out of money all because the management of Avianca couldn't run a sustainable operation without burying their company in billions of dollars in debt so that they could claim to be the "best airline in South America".
May 12, 2020, 10:02 am
#24
Join Date: Feb 2020
Location: BHD/DUB/PTY
Programs: BA Silver / EI Silver
Posts: 419
Very curious what will happen with the Central American subsidiaries and their future. Avianca has shown that it doesn't care much about their smaller subsidiaries around the region: Shutting down Aeroperlas (Panama), and selling La Costeña (Nicaragua) and SANSA (Costa Rica).
I see Avianca prioritising their Colombia, Costa Rica and El Salvador units. They already decided to shut down their Peru unit. Perhaps the units in Honduras and Guatemala will be the next to be axed?
I see Avianca prioritising their Colombia, Costa Rica and El Salvador units. They already decided to shut down their Peru unit. Perhaps the units in Honduras and Guatemala will be the next to be axed?
May 13, 2020, 10:24 am
#25
Join Date: Jun 2005
Posts: 13
You won't get a refund now, and neither will anyone else. At the moment the bankruptcy was filed, you and every other customer became unsecured creditors, in line after the employees, debtor-in-possession financing, bond holders, and priority unsecured debt. It is quite unlikely the unsecured creditors get a dime, and the bond holders will probably take losses too, in reverse priority order.
Avianca can't legally give refunds now, even if they wanted to, now that they're in bankruptcy administration. This will take time in courts of course, and creditors higher in priority than you would have to approve payouts if such payouts would not leave them whole.
Avianca can't legally give refunds now, even if they wanted to, now that they're in bankruptcy administration. This will take time in courts of course, and creditors higher in priority than you would have to approve payouts if such payouts would not leave them whole.
Given the unsecured nature of this debt, perhaps the voucher is a better idea? Of course the risk is that we could be 2 years away from safe global travel in reality. And maybe more given the nature of pandemic in south america and reliance on string vaccination rate in all countries (certainly higher than 50%)
Credit card co (Chase) isnt being of much help now either
May 13, 2020, 7:38 pm
#26
Join Date: May 2020
Location: NY
Posts: 18
Been reading about it. Avianca basically screwed Peruvian employees and won’t be paying them a penny for their years of service while planning to keep their operations in other countries.
May 15, 2020, 4:10 am
#27
FlyerTalk Evangelist
Join Date: Nov 2018
Location: Istanbul, Turkey
Programs: TK Elite Plus,BAEC GGL,ITA Executive, AFKL Gold,QR Gold,HH Diamond,Bonvoy Gold,ALL Gold
Posts: 14,185
I haven't cancelled that error fare ticket that I've mentioned on Page 1 and now when I log in to MMB on Avianca.com,
A message like this appears;
The ticket is a JFK-BOG-GRU r/t ticket
It refers me to a link to find new flights, however, my original flights are not cancelled. 
Interesting part, when I click on the "Find New Flights" link it asks me to pay the fare difference.
Probably, it's a new method to get some extra money with a word-game.
A message like this appears;
The ticket is a JFK-BOG-GRU r/t ticket
Your travel from John F Kennedy International (JFK) to El Dorado International (BOG), Guarulhos International (GRU) may be disrupted on your travel dates. We recommend changing your booking.
Interesting part, when I click on the "Find New Flights" link it asks me to pay the fare difference.
Probably, it's a new method to get some extra money with a word-game.
May 15, 2020, 9:22 pm
#28
Join Date: Feb 2016
Location: EZE
Programs: UA Gold,Delta Gold Bonvoy Titanium Elite, HH Diamond , AA Platinum, EENational, Hyatt Globalist
Posts: 1,547
I haven't cancelled that error fare ticket that I've mentioned on Page 1 and now when I log in to MMB on Avianca.com,
A message like this appears;
The ticket is a JFK-BOG-GRU r/t ticket
It refers me to a link to find new flights, however, my original flights are not cancelled.
Interesting part, when I click on the "Find New Flights" link it asks me to pay the fare difference.
Probably, it's a new method to get some extra money with a word-game.
A message like this appears;
The ticket is a JFK-BOG-GRU r/t ticket
It refers me to a link to find new flights, however, my original flights are not cancelled.
Interesting part, when I click on the "Find New Flights" link it asks me to pay the fare difference.
Probably, it's a new method to get some extra money with a word-game.
May 17, 2020, 10:03 am
#29
Join Date: May 2020
Programs: Lifemiles, Marriott Titanium,
Posts: 53
With Avianca bankruptcy, the award availability to Europe in J is gone. Last week, there were plenty of option out of MIA to VCE/FCO/LIS on Tap Air. LX was available as well in January thru March from MIA to PRG. Now all of that availability is gone. I wonder it it ever comes back. I had to cancel 8 tickets in J this summer due to the covid and I am stuck with a lot of miles. I think the airlines are pulling out of lifemiles because they know they are not going to get paid. The flights are still available under United miles.
May 17, 2020, 7:59 pm
#30
Join Date: Oct 2010
Location: USA
Programs: DL PM - IC RA - HHonors Gold - Hertz Gold - AA - US - CO - Choice Privileges
Posts: 1,648
With Avianca bankruptcy, the award availability to Europe in J is gone. Last week, there were plenty of option out of MIA to VCE/FCO/LIS on Tap Air. LX was available as well in January thru March from MIA to PRG. Now all of that availability is gone. I wonder it it ever comes back. I had to cancel 8 tickets in J this summer due to the covid and I am stuck with a lot of miles. I think the airlines are pulling out of lifemiles because they know they are not going to get paid. The flights are still available under United miles.
Last edited by view-with-a-room; May 17, 2020 at 8:11 pm