Avianca Exiting Bankruptcy With Low-Cost Flexibility, CEO Says
- Airline to compete on price while keeping broad network
- Company to be closely held until it chooses a stock exchange
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Avianca Group International Ltd. is emerging from bankruptcy with plans to compete with low-cost carriers on price while keeping parts of the business that made it Latin America’s second-largest airline before the Covid-19 pandemic hit.
Chief Executive Officer Adrian Neuhauser said the company was able to slash debt and build up liquidity during an 18-month Chapter 11 reorganization that it exited this week. It will add more seats on planes and use the point-to-point route structure made popular by low-cost airlines rather than relying on flying through its hubs.