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Avianca Argentina to make a comeback after going bust in 2019

Avianca Argentina_IFM_Image
Reportedly, the company, which going through a bankruptcy process, has settled its due with its creditors

Avianca Argentina, legally incorporated as Avian Líneas Aéreas, is planning to make a comeback, media reports said. The carrier, which is going through a bankruptcy process currently, has settled its dues with its creditors. Avianca Argentina ceased operations on June 7, 2019.

According to local media reports, Avianca Argentina managed to come to an agreement regarding 70 percent of its debt which is valued at $15.2 million. The carrier will pay off its debt in five years with a discount of 50 percent.

Avianca Argentina was born Synergy Group, the parent company of Avianca Holdings, acquired Argentina-based regional airline Macair Jet in 2016.

In July, the International Air Traffic Association (IATA) mentioned that setting up a reliable flight schedule in Argentina was becoming increasingly difficult as the country’s government tightened its regulations on international travel and allowed only 1000 passengers every day, all of who have to be the country’s residents.

This followed the Argentinian government’s announcement that it would only allow 600 international passengers per day. The government did increase the number of international passengers to 742 per day during July’s second week.

Last month, Brazil’s Gol Linhas Aéreas Inteligentes signed an agreement to buy 28 Boeing 737 MAX-8 aircraft that will replace 23 of its 737-800 NGs by the end of 2022. The airlines mentioned that the new planes will reduce unit costs by 8 percent next year and they will generate about $200 million in cash equity gains.

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