Avianca Airlines Goes Bankrupt & Discontinues Services in Peru
Like all businesses hit hard by Covid-19 pandemic, companies operating in the travel industry have been crippled, some to the point of collapse. On May 10, 2020 Avianca airlines, the third largest airline in South America, filed for Chapter 11 Bankruptcy to protect and reorganize the remaining fragments of the 100 year old company.
Avianca Discontinues Flights in Peru during Worldwide Covid shutdown.
As part of the restructuring, Avianca had to shut down its business in Peru in order for the Colombia-based airline to focus on the essential markets in Colombia and other prominent routes in Latin America. Avianca passenger flights were grounded since the middle of March 2020 forcing most of the 189 plane fleet to sit idle.
Avianca Airlines Service Resumes in Peru After Covid.
Seems that Avianca and Sky Airlines are planning a merger with the intent for Avianca Airlines to return to various latin markets. As of January 2022 you can find flights between, New York, Washington DC, Chicago, LA, Miami and Lima. Most flights will have a layover in Bogota, Columbia because that is a major hub for Avianca Airlines. This is very good news but so far I don't have any info about reliability of service. I would consider this an emerging new travel business. Let's hope that Avianca Airlines uses this opportunity to rebuild their share of the Peruvian airline market. I remember hearing various stories and complaints about cancellations and crappy service. You can take a chance and book your flight on Avianca Airlineswith one eye closed and hope everything works out, or check out an online travel platfrom to see if there are any recent reports.
Avianca is a partner in the Star Alliance industry group and the loyalty program is an important benefit. LifeMiles members may wonder how the bankruptcy will impact the frequent flyer program and the use of award miles. Fortunately, LifeMiles operates as a separate entity and is not included in the bankruptcy. LifeMiles members can earn and redeem points as long as they go through the Avianca Airline system. Avianca extended the status of elite members through January 2022. The greatest risk of loss is if Avianca Airlines goes out of business completely. Even then, LifeMiles could rise up and function as a stand alone company allowing members to redeem points for products and services.