No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTravel & TourismColombia announces $370 mn loan to pandemic-hit airline Avianca

Colombia announces $370 mn loan to pandemic-hit airline Avianca

Colombia’s government announced last week a $370 million loan to the airline Avianca, which has grounded almost its entire fleet because of the pandemic.

The second-largest carrier in Latin America is undergoing a restructuring and has filed for bankruptcy protection under laws in the United States.

The Finance Ministry said the loan will become available once a US federal court in New York approves the Colombian government taking a stake in the restructuring.

The ministry said the loan is being offered because of the possible impact on Colombia’s economy of Avianca failing completely.

Saddled with debt, Avianca filed in May in the US court as it tries to reorganize that liability.

In late March Avianca suspended all of its flights and grounded its fleet of 142 aircraft, citing restrictions imposed by the Bogota government to halt the spread of the coronavirus.

The government of President Ivan Duque has allowed some exceptions for domestic flights, however, and this week he said more can take off starting in September.
The company hopes to resume international flights in October.

Because of the pandemic Avianca has laid off 12,000 of its more than 20,000 employees.
The pandemic has claimed around 19,000 lives in Colombia.

The government says Avianca accounts for 1.4 percent of the country’s GDP.

Avianca lost almost $900 million last year, compared to profits of $1.1 billion in 2018.

Trending Now

An Expat’s Take: 5 Burning Questions About Life in Costa Rica Right Now

Have you been keeping up with the various events taking place in Costa Rica? There is always something interesting going down, and here are...

Costa Rica’s Piangua Mollusk Threatened by Pineapple Farm Runoff

Costa Rica’s Térraba-Sierpe National Wetland, a 33,000-hectare haven of mangroves and rivers, is under siege from an unlikely source: pineapple farms. A study by...

Costa Rica and Panama Seek Gold Cup Glory Against North American Giants

With no Caribbean teams advancing, a Central American contingent made up of Panama, Costa Rica, Honduras, and Guatemala heads into the quarterfinals of the...

Fishing, Wildlife, and History in Costa Rica’s Barra del Colorado

Costa Rica’s Barra del Colorado is a magical and charming town. It’s one of the country’s hidden gems, best known for its world-class sport...

Guatemala Offers Asylum to Nicaraguan Migrants Deported by U.S.

Guatemalan President Bernardo Arévalo announced on Friday that his country will grant asylum to Nicaraguan migrants deported by the United States who do not...

Costa Rican Court Orders Release of Migrants Deported Under Trump Deal

A court on Tuesday ordered Costa Rican authorities to release foreign migrants who had been detained in a shelter after being deported under an...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica