Avianca Holdings SA, the Colombian parent company which controls the Avianca group of airlines, released a statement detailing steps it will take in reaction to its deteriorating financial situation. The company will defer payments on long-term leases and will pause loan principal payments. It stated that these management decisions will not impact Avianca’s daily operations.
Earlier this year, the airline group deferred deliveries of 35 aircraft and cancelled an order for seventeen Airbus A320neo aircraft in an attempt to reduce its cash expenditure. Its Brazilian subsidiary filed for bankruptcy protection last year.
The company is based in Bogotá and operates from bases in nine Latin American nations.
Source: PR Newswire