Avianca obtains confirmation of her reorganization plan

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– The airline expects to exit its court-supervised restructuring process before the end of the year.

– An updated business plan will result in a stable and financially viable airline, further supported by the continued growth of its freight and loyalty business.

– Avianca’s new vision combines the airline’s 100-year heritage with modern service optimized to meet the needs of today’s customers across Latin America and beyond.

Bogota – Colombia, November 2, 2021 / PRNewswire / – Avianca announced today that following the submission of the additional documents requested by United States New York Southern District Court – court upheld Avianca’s reorganization plan*I. The company hopes to complete its court-supervised reorganization and exit Chapter 11 before the end of the year as a more efficient and financially sound airline, well positioned for long-term success.

At emergence, the Company will have a strong balance sheet, with significantly reduced debt and more $ 1 billion in liquidity. The restructuring of Avianca will allow the Company to continue to reposition itself and simplify its activities, once again becoming the carrier of choice in Latin America adopting more competitive prices for customers, reconfiguring aircraft with the best modern seats in their class, expanding network routes nationally and internationally, refinancing its aircraft portfolio and securing financing commitments to long term. Avianca will retain the differentiating and competitive strengths of the airline, including a strong network, one of the best loyalty programs, VIP lounges, signature services and one of the most competitive freight solutions in the region.

Rohit Philippe, Chief Financial Officer of Avianca, said: “We are delighted to have reached this critical milestone and look forward to becoming a stronger organization that is well positioned to fly in the skies for many years to come. The financial and operational progress that we have already achieved is a testament to the tenacity and commitment of the entire Avianca team, and I am proud of their considerable efforts ”.

Adrien Neuhauser, President and CEO of Avianca, said: “On behalf of everyone at Avianca, I would like to express our gratitude to our loyal customers, partners and lenders for their continued support. I especially want to thank Justice Glenn for his responsible oversight of the process. Going forward, with a stronger financial base, Avianca will be better positioned to capture the recovery in travel demand with a compelling value proposition to meet the needs of today’s customers through Latin America and beyond. We are a company that combines a heritage of over 100 years with modern, optimized service, while remaining committed to continuing to set the standard for safety, customer service and value across the industry. “

Business plan :

Avianca’s updated business plan impacts all facets of operations – the destinations Avianca will serve, the aircraft Avianca will operate and how Avianca will serve its customers – to strengthen its leadership position and ensure its future success.

The business plan provides in particular:

  • A financially viable and stable airline;

  • Higher network density with a passenger fleet of over 130 aircraft serving over 200 largely point-to-point routes by the end of 2025, with extended service across Latin America as demand fully recovers;

  • A lean cost structure offering both better pricing and more direct service, while allowing growth in new markets; and

  • Continued growth in air freight and LifeMiles loyalty activities, building on the Company’s already well-established market positions.

Milestones in Avianca’s business vision:

During the year 2021, Avianca made significant progress in its new business vision in three key areas: strengthening its network, redesigning products and improving services. Some steps that the Company has already taken successfully include:

  • A stronger network: Announcement of 23 new point-to-point links in strategic markets for 2022, including Colombia, El Salvador, Guatemala and Costa Rica. Avianca plans to operate over 100 new routes over the next three years.

  • Cabin reconfiguration: Incorporated more seats to offer more competitive prices and increase the number of passengers carried. The capacity of each aircraft will be increased by up to 20%.

  • Tailor-made service packages: Give customers greater flexibility to manage their flights and services so they only pay for what they really need.

  • Best self-service: Strengthening of online customer service, its “Vianca” chat service and digital channels so that passengers can more easily manage their trip from the Avianca mobile application and website.

  • An enriching LifeMiles program: Introduced a new model for earning miles and more benefits for frequent flyer program travelers.

Court records and other documents related to the Chapter 11 process are available on a separate website administered by Avianca’s claims officer, Kurtzman Carson Consultants, at www.kccllc.net/avianca. Information is also available by calling (866) 967-1780 (US /Canada) or +1 (310) 751-2680 (International), as well as by email at www.kccllc.net/avianca/inquiry.

Seabury Securities LLC acts as financial advisor to Avianca and Milbank LLP as legal advisor.

Media contact
Maria Caroline Cortés
Vice President of Corporate Communications
[email protected]

* The value of the outstanding shares of the Company (including the preferred shares traded under the ticker symbols OTCMKTS: AVHOQ, BVC: PFAVH) will be reduced to zero and cease to have value and the assets and liabilities of Avianca will be reduced to zero. reorganized under a new corporate participation

Cision

Show original content:https://www.prnewswire.com/news-releases/avianca-achieves-confirmation-of-reorganization-plan-301414708.html

SOURCE Avianca Holdings SA


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