Avianca Peru ceasing operations, to enter liquidation
Avianca Peru, Avianca Holdings subsidiary airline, has begun a liquidation process. The airline is being dissolved after its parent company began voluntary bankruptcy proceedings earlier in May 2020.
On May 18, Avianca (AVHOQ) announced that its Peruvian arm is ceasing operations and is preparing to be dissolved under the country’s laws. The parent company is resorting to one of its smaller carriers' liquidation “in order to preserve and protect Avianca’s (AVHOQ) businesses,” as outlined in the company’s statement.
Despite the Avianca Peru liquidation, routes to and from the country remain the group’s plans. After the COVID-19 travel restrictions are lifted, the company hopes to employ its Colombian, El Salvadorian and Ecuadorian airlines to serve the routes to and from Peru.
Avianca Holdings, the second-largest airline group in Latin America announced entering a voluntary bankruptcy procedure on May 10, 2020. “Avianca (AVHOQ) is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic,” Anko van der Werff, Chief Executive Officer of Avianca (AVHOQ) , said at the time in the company's statement.
Back then, the company said it would close its Peru operations, as part of the effort to “right-size” and shift focus on core markets. Together, the group airlines’ fleets stand at 148 aircraft (158 according to the company itself). The Peru-based carrier is one of the smallest members of the group, operating five aircraft.
Colombia's Avianca (AVHOQ) has been flying uninterrupted for 100 years, making it the second oldest airline in the world, after KLM Royal Dutch Airlines. During the century, the airline group had less luck with its finances than it did with operations. Due to financial difficulties, the company already went through a similar bankruptcy process in 2003.