Tag

The battle for control of Viva goes far beyond Avianca, Jetsmart & Latam. Here are some of the key players

Now, even coming out of bankruptcy and with an investment banker rather than an airline operations expert in charge, passengers are screaming.

As reported by Finance Colombia and elsewhere, Avianca (OTCMKTS: AVHOQ, BVC: PFAVH) directors and creditors have recently taken a significant stake in troubled Chilean low-cost carrier Sky Airlines, while bankrupt Avianca seeks to emerge from Chapter 11 reorganization in the...

Removing business class from short haul commuter flights is not a big deal by itself, but what is Avianca’s strategy? What does the airline want to be?

The investment, said to be $70 million USD of convertible credit, brings the airline into proximity with both bankrupt Colombian carrier Avianca and Mexican carrier Volaris.

The value of the shares would be reduced to 0 due to the decrease in equity attributable to the Debtors’ liabilities to third parties and creditors, as well as the injection of capital by new investors pursuant to the Chapter 11 plan.

The next step in the Chapter 11 process will be a hearing for the United States Bankruptcy Court to consider the approval of the disclosure statement, which is scheduled for September 14, 2021.

Had the airline simply made Ms. Casanova whole, this case would not exist. However, the fact that Avianca chose to battle a $1,500 USD refund all the way to Colombia’s supreme court suggests a new, more hostile attitude towards the same passengers it once coddled.

Before joining Avianca as CFO, Neuhauser was managing director covering Latin American airlines for Credit Suisse and worked as an investment banker for Deutsche Bank, Bank of America, and Merril Lynch.

The Lima – Buenos Aires route is one of the most important in South America, connecting the capitals of Peru and neighboring Argentina. Viva & Sky may fly 4 weekly routes, while Latam may now fly 6.