Avíanca files for bankruptcy

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Old May 10, 20, 9:36 am   -   Wikipost
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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
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Old May 10, 20, 1:19 pm
  #1  
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Avíanca files for bankruptcy

https://www.reuters.com/article/us-a...-idUSKBN22M0N1
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Old May 10, 20, 1:47 pm
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Yep, it was inevitable.
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Old May 10, 20, 1:57 pm
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Avianca’s loyalty program LifeMiles is a separate company and not part of the reorganization. Not sure how they can issue tickets though.
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Old May 10, 20, 2:38 pm
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Avianca Peru files for liquidation. Other subsidiaries intend to continue operations.

https://elcomercio.pe/economia/negoc...-nndc-noticia/
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Old May 10, 20, 3:29 pm
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Terrible news for the staff and everyone is working for Avianca. I hope they get new jobs quickly.

Now lets be honest. The airline was a joke. Non existing customer services, horrible food in J, uncompetitive prices and the worst of all, free upgrades to family and friends...
The end was near, but the current situation made it sooner.

A few days ago i was looking to book flights to Colombia. I was not planning to book Avianca and thank god i was right. When i had a quick look Iberia/Lufthansa/Air Europa/KLM all priced around £1.000 for a return in J while Avianca had the pro covid 19 prices around £2.000. What a joke. Seriously.
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Old May 10, 20, 4:43 pm
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I just bought an AV deal ticket for fall and I'm still in the 24 hour free cancellation period as I bought this ticket via a US OTA?
Any chances that AV would survive? Should I keep the ticket or cancel it?

By the way, it's a $199 r/t USA to Brazil ticket which I doubt I would not be able to find something like this.

Thanks for your opinions.
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Old May 10, 20, 5:11 pm
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I would suggest cancellation - if you can get a refund... I have a refund now pending over a month that they will not return the money for. Credit card isn't being super helpful either.

At this point, if I get to do any traveling at all in the balance of the year, it is going to be with airlines that are more financially secure (or at least have some government backing).
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Old May 10, 20, 5:26 pm
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Originally Posted by sombrachinesca View Post
I would suggest cancellation - if you can get a refund... I have a refund now pending over a month that they will not return the money for. Credit card isn't being super helpful either.

At this point, if I get to do any traveling at all in the balance of the year, it is going to be with airlines that are more financially secure (or at least have some government backing).
Thanks for your input.
I still have about 21 hours to get a full refund because of the 24-hour grace policy. I am thinking thoroughly and would make a decision on the upcoming hours.

https://aviancawillkeeponflying.com/...nfographic.pdf
According to this infographic, they still aim to fly after the pandemic.

By the way, I just looked at my credit card travel insurance and they cover all expenses up to $1500 per ticket in case of airline bankruptcy.
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Old May 10, 20, 5:47 pm
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Avianca was in bad trouble before this. They will not be missed on my part.
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Old May 10, 20, 6:24 pm
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Still sad to see. Hope those who need refunds can get them...
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Old May 10, 20, 8:32 pm
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http://m.news.avianca.com/nl/jsp/m.j...U%2F%2FrWHg%3D
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Old May 10, 20, 8:49 pm
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I was thinking of transferring points to Avianca to book a ticket on Lufthansa...would that be a safe thing to do? Even if Lifemiles were to go away, would a ticket on another airline be safe?
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Old May 10, 20, 9:10 pm
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Originally Posted by ISTFlyer View Post
I just bought an AV deal ticket for fall and I'm still in the 24 hour free cancellation period as I bought this ticket via a US OTA?
Any chances that AV would survive? Should I keep the ticket or cancel it?

By the way, it's a $199 r/t USA to Brazil ticket which I doubt I would not be able to find something like this.

Thanks for your opinions.
I bought a similar ticket. I would keep it since is cheap. But again... is $199 the amount you could let go in case AV stop flying?
My Finnair (bought through OTA) is still pending refund for 2 months now. And i doubt i would get my money back.
This is all a gamble at this point. And what price point are you willing to lose to get cheap deals...
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Old May 10, 20, 9:14 pm
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Originally Posted by fredc84 View Post
I was thinking of transferring points to Avianca to book a ticket on Lufthansa...would that be a safe thing to do? Even if Lifemiles were to go away, would a ticket on another airline be safe?
I have read somewhere that LH might not honour partner tickets. Could be wrong too...
But i would personally defer from transferring point for booking advance travel now as no one knows what etc. All speculative.
Unless if you are looking at LH F (T-14) and space is available.
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Old May 10, 20, 9:29 pm
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Chapter 11 doesn’t mean cessation of operations. In fact the chapter 11 law is designed to give a chance to the business of continuing. They file in the US to protect from financial liabilities The stock is toast, the bondholders should worry but they wont cease to exist tomorrow.. + *A need a carrier in South America and lifemiles is a separate , profitable entity. Obviously not the time to buy millions of miles but I think no reason to panic either.
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