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An Avianca A330 at New York-JFK (Photo: AirlineGeeks | Ben Suskind)

Avianca and LATAM to Resume Operations in Ecuador Amid Bankruptcy Proceedings

After almost 3 months without any operations due to the COVID-19 pandemic, Avianca Ecuador resumed its domestic flights with 16 weekly frequencies between the cities of Quito, Guayaquil and Manta.

According to the website ALNNEWS, the airline will resume its operations gradually, and in line with passenger demand for each destination; while the resume of international routes operations will depend on the international borders reopening.

In the case of LATAM Ecuador, the carrier resumed their domestic operations with 4 weekly flights between Quito and Guayaquil and 3 flights per week between Quito and Cuenca.

The Colombian Situation

In Colombia, which is the carriers’ main hub, the Operations Vice President, Julián Laverde, indicated that Avianca is ready to resume domestic operations once the government announces which airports will be reopened, in order to build a network of routes in the intern market.

During previous months, Avianca announced that it has successfully implemented the biosafety protocols in their cargo and special passenger flight operations. Airline personnel will be using protection elements such as masks, hand sanitizing, digital or infrared thermometers, cleaning kits (alcohol and towels) for disinfection inside the plane, as well as protocols to minimize physical contact as much as possible. Likewise, the personnel on the ground and onboard are ready to detect any possible alert and act according to the established security protocols in all phases of the flight.

LATAM Colombia published their safety and hygiene measures, which are following all recommendations made by international organizations such as the International Air Transport Association (IATA), the World Health Organization (WHO) and governments.

Surprisingly, this June 17, Santiago Álvarez Matamoros, LATAM Colombia CEO, announced that the carrier will temporarily suspend their workers, until they resume operations. Álvarez clarified that once the government authorizes to restart operations, they will be gradually calling the workers they need to guarantee the operations.

According to uscorts.gov, filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code. There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code: Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize.

According to eltiempo.com, the bankruptcy reorganization procedure as Avianca Holdings and LATAM Airlines Group filed due to the COVID-19 crisis, would take more than a year, because this procedure is not only about reorganizing the company operation, this process also includes arduous negotiations with creditors, shareholders, employees and entities. Through Chapter 11, companies seek to make their business profitable again, and important business decisions are ultimately made by the bankruptcy court.

Juan Pedro Sanchez Zamudio
Juan Pedro Sanchez Zamudio
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