Tuesday 22 June 2021

Avianca cancels 25 unprofitable routes

The cancellation of 25 unprofitable routes and the sale of 24 aircraft are part of Avianca’s transformation plan, with which it intends to optimize resources and be more competitive.

The airline’s parent company efforts are focused on re-profiling its debt and consolidating the capital structure while adjusting the operation.

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According to Adrian Neuhauser, CFO of Avianca Holdings, confirmed the cancellation of the unprofitable routes and the sale of 24 aircraft and its divestment in non-strategic businesses, such as Getcom, La Costeña, the Nicaragua domestic airline, and Sansa (based in San José, Costa Rica) to Regional Airlines Holding, in Delaware, US.

Servicios Aéreos Nacionales S. A. (Sansa), with its hub at the Juan Santamaria Internaitonal Airport (SJO), operates domestic scheduled passenger services as part of the TACA Airlines regional airline system, and is a subsidiary of Avianca Costa Rica.

The canceled routes are as follows:

  • Bogotá to Boston and Chicago
  • Cartagena to Pereira, New York, San Salvador
  • Guatemala to Tegucigalpa, New York, Chicago, Orlando, Miami
  • San Salvador to Boston, Cali, Cartagena, Medellín
  • Others from Lima
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Parallel to the closure of routes, mainly in Central America, North America, and Peru, the company reduced frequencies.

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FACT CHECK:
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