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Delta Offers Lounge Access at London Heathrow Terminal 2

Starting Thursday, Delta Air Lines’ premium customers and eligible frequent fliers will be welcomed into the award-winning Plaza Premium lounge at London-Heathrow Terminal 2. 

Following their temporary move to Terminal 2 from Terminal 3, eligible Delta and Virgin Atlantic customers will be able to enjoy complimentary food and beverages in the Plaza Premium lounge before their flight. Delta offers daily flights between Heathrow and New York-JFK and a three-times-a-week service to Atlanta.

Since the pandemic, Delta has implemented a new level of clean – the Delta CareStandard – so customers can travel with confidence. In line with this ethos, Plaza Premium has also enhanced its cleaning and safety measures so customers can feel confident when they use the lounge before they fly. Customers are also encouraged to wear a face covering and practise social distancing.

“Safety is at the heart of everything we do at Delta and we’ve implemented additional measures to provide peace of mind for customers at every step of their travel journey,” said Shane Spyak, Delta’s Vice President – Europe, Middle East, Africa and India. “This includes working with our airport partners across our global network to provide additional layers of protection in lounges.”

In the U.S., there are limited Delta Sky Clubs open at Atlanta and New York-JFK airports. Customers will find seating that adheres to social distancing guidelines, plus a streamlined food and beverage offering among the measures being taken to limit touchpoints and keep the Clubs clean.

Delta remains the only U.S. airline offering nonstop service between the U.K. and United States that is keeping middle seats blocked throughout the aircraft on all routes until September 30, 2020, to help protect the health and safety of its customers and crew. Seat blocks are automatically implemented to prevent the adjacent seat being booked once a reservation is complete and seats are chosen. Parties of three or more are able to book seats together, including middle seats.

As part of its COVID-19 health and safety measures, Delta requires employees and customers to wear a face mask or appropriate covering when travelling. The airline also has enhanced booking flexibility in place on flights purchased until August 31, 2020, to provide reassurance to customers should they need to amend their plans. Changing an existing booking is easy via the “My trips” area on delta.com.

Furthermore, the airline has a rigorous onboard cleanliness programme, which includes:

Sanitizing the aircraft before every flight

State-of-the-art air circulation systems with HEPA filters that extract more than 99.99% of fine particles in the air, including viruses and bacteria, on all trans-Atlantic flights (and mostly across Delta’s network).

– Boarding flights from back-to-front – reducing the instances of customers needing to pass by one another

– Temporarily streamlining onboard food and beverage service to reduce touchpoints

– Providing supplies directly to customers when available, including hand sanitizers in wellness kits

JetBlue is First U.S. Airline to Achieve Carbon Neutrality for All Domestic Flying

JetBlue (Nasdaq: JBLU) today announced it has followed through on its commitment to go carbon neutral on all domestic flights. Earlier this year, JetBlue became the first major U.S. airline to commit to this critical and measurable step toward reducing its contribution to global warming, and is now the first U.S. airline to achieve carbon neutrality on all domestic flying.

On July 1, the airline began offsetting its carbon dioxide emissions (CO2) from jet fuel for all domestic JetBlue-operated flights. JetBlue views carbon offsetting as a bridge to other industry-wide environmental improvements like fuel with lower emissions. Therefore, JetBlue is also investing in sustainable aviation fuel (SAF) and to start, the airline is fueling flights from San FranciscoInternational Airport (SFO) with SAF.

Carbon neutrality is just one way JetBlue is preparing for a changing climate and ensuring a more sustainable business for its crewmembers, customers, shareholders and communities. JetBlue’s carbon reduction strategy focuses on reducing emissions in the first place. This includes investments to shrink its impact through fuel-saving technologies and aircraft, and advocating for a more fuel-efficient air traffic control system. JetBlue has achieved reductions in emissions on an intensity basis since 2015, and most recently improved 2.2 percent per available seat mile (ASM) from 2018 to 2019.Offsetting all remaining emissions from domestic flights and investing in SAF will help JetBlue move toward the lower-carbon economy for which aviation and all sectors must plan.

“The global pandemic reinforces the need to mitigate risks that threaten the health of our business. Our commitment to sustainability has only become more important as we prepare our business for a new climate reality,” said Joanna Geraghty, president and chief operating officer, JetBlue. “Even with a long recovery ahead following the COVID-19 pandemic, JetBlue remains focused on short- and long-term environmental opportunities, particularly lessening our largest impact – carbon emissions – and more fuel efficient flying.”

Amtrak Prepares for New Diesel Locomotive Fleet

Amtrak today released renderings and other information about the first of the diesel-electric locomotives that will replace the current fleet on the National Network, including all long distance and many state-sponsored routes.

Five of the first six locomotives will have this version of our current Phase VI paint scheme (a “livery” in trade terms) and one will be painted to recognize next year’s 50th anniversary of the inauguration of Amtrak service. A final livery will be unveiled later as part of a fleet-wide plan.

The ALC-42 series was developed by Amtrak with Siemens Mobility and is equipped with the latest safety systems, including Positive Train Control and Crash Energy Management. They have Alternating Current Propulsion for a maximum speed of 125 mph. The 16-cylinder Cummins QSK95 engine has Tier 4 Emissions Technology to reduce nitrogen oxide by more than 89 percent and particulate matter by 95 percent, while providing a savings in diesel fuel consumption and reaching Amtrak Sustainability goals.

The initial order of 75 new locomotives was first announced by Amtrak in December 2018, with deliveries expected through 2024. Amtrak also has a provision to order additional ALC-42 locomotives.

They are similar to the SC-44 locomotives purchased by some state agencies and operated by Amtrak, but have greater fuel capacity for longer routes and increased Head End Power generating capacity for bigger trains. A multitude of other upgrades will also lead to longer maintenance intervals. The front of the ALC-42 locomotive will serve as a “new face of Amtrak” in much of the U.S. and is designed to enhance safety, aesthetics and to simplify repairs.

The new locomotives are designated as ALC-42 for “Amtrak Long-distance Charger, 4,200-horsepower” and are in production in Sacramento, Calif. They will primarily replace Amtrak P40 and P42 diesel-electric locomotives. Although modern when bought in the 90s, the P-series locomotives have been intensively used for more than 25 years, lack up to date technology and do not achieve Tier 4 emissions standards.

Amtrak is purchasing the new locomotives through available funds and fulfills “Buy American” provisions. Siemens Mobility has suppliers across the United States to support locomotive production, including Cummins, which manufactures the diesel engines in Seymour, Indiana.

These new locomotives are part of Amtrak’s long-term planned series of improvements for fleet, infrastructure and stations, including new Acela trainsets now undergoing tests to begin service next year. Improvements are ongoing at New York Penn Station and Moynihan Train Hall, in addition to expanded development of the major stations at Washington, D.C., Baltimore, Philadelphia and Chicago.

Virgin Atlantic Airline Files for US Bankruptcy Protection

NEW YORK — Virgin Atlantic, the airline founded by British businessman Richard Branson, filed Tuesday for protection in U.S. bankruptcy court as it tries to survive the virus pandemic that is hammering the airline industry.

The airline made the Chapter 15 filing in U.S. federal bankruptcy court in New York after a proceeding in the United Kingdom.

A spokeswoman for Virgin Atlantic said the bankruptcy filing is part of a court process in the United Kingdom to carry out a restructuring plan that the airline announced last month. The process is supported by a majority of the airline’s creditors, and the company hopes to emerge from the process in September, she said.

Click the link below for the full story!

https://www.foxbusiness.com/markets/virgin-atlantic-airline-bankruptcy-protection

JetBlue and American Airlines Announce Strategic Partnership

JetBlue Airways Corp. (NASDAQ: JBLU) and American Airlines Group Inc. (NASDAQ: AAL) announced a strategic partnership that will create seamless connectivity for travelers in the Northeast and more choice for customers across their complementary domestic and international networks. In addition, the relationship will accelerate each airline’s recovery as the travel industry adapts to new trends as a result of the pandemic.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200716005584/en/

The partnership includes an alliance agreement that proposes codeshare and loyalty benefits that will enhance each carrier’s offerings in New York and Boston, providing strategic growth and driving value for customers and crewmembers of both airlines. (Graphic: Business Wire)

The partnership includes an alliance agreement that proposes codeshare and loyalty benefits that will enhance each carrier’s offerings in New York and Boston, providing strategic growth and driving value for customers and crewmembers of both airlines. (Graphic: Business Wire)

The partnership includes an alliance agreement that proposes codeshare and loyalty benefits that will enhance each carrier’s offerings in New York and Boston, providing strategic growth and driving value for customers and crewmembers of both airlines. Customers will experience a number of benefits from the new partnership, including:

  • New and expanded routes: The partnership enables new strategic growth opportunities for both airlines. As a result, American will launch international service from New York (JFK) to Tel Aviv (TLV) and to Athens (ATH) and JFK to Rio De Janeiro (GIG) will return as a daily seasonal route in winter 2021, in addition to continuing to serve popular long-haul destinations like London (LHR) and Madrid (MAD). JetBlue will also accelerate its growth in key cities, bringing its award-winning service to more customers. JetBlue will grow in greater New York City, adding flights at LaGuardia (LGA) and Newark (EWR), while also increasing its presence at JFK for seamless connections to American’s expanded international network. JetBlue plans to enhance service to strategic markets on the East Coast, West Coast, and in the Southeast, building on JetBlue’s recently announced service between EWR and nine markets, including Mint® service to Los Angeles (LAX) and San Francisco (SFO).
  • More choice and loyalty benefits: Through their integrated networks,JetBlue and American will operate reciprocal codeshare flights, giving customers new options with improved schedules, competitive fares and nonstop access to more domestic and international destinations. JetBlue will gain connectivity to more U.S.destinations, a broad global network and an improved frequent flyer proposition, while American will complement JetBlue’s improved and expanded service with new international routes. JetBlue and American loyalty members will also enjoy new benefits while the carriers are exploring additional premium experiences for customers.
  • Seamless experience: Customers will enjoy a seamless experience across both airlines, including the ability to book a single itinerary on either website, convenient connections and an improved on-the-ground experience — resulting in a compelling proposition for both leisure and corporate customers. Additionally, customers seeking more comfort in transcontinental service will have access to both JetBlue’s Mint and American’s three-class Transcon service.

“Pairing JetBlue’s domestic network with American’s international route map creates a new competitive choice in the Northeast, where customers are longing for an alternative to the dominant network carriers,” said Joanna Geraghty, president and chief operating officer, JetBlue. “This partnership with American is the next step in our plan to accelerate our coronavirus recovery, get our crewmembers and our aircraft flying again, and fuel JetBlue’s growth into the future.”

“This is an incredible opportunity for both of our airlines,” said American Airlines President Robert Isom. “American has a strong history in the Northeast, and we’re proud to partner with JetBlue as the latest chapter in that long history. Together, we can offer customers an industry-leading product in New York and Boston with more flights and more seats to more cities.”

New routes from the Northeast

The partnership between American and JetBlue enables sustainable international growth for customers in the Northeast from JFK, which will continue to complement the robust international service from Philadelphia (PHL), for even more options.

Upon the implementation of the alliance agreement, American intends to launch service between JFK and TLV and will introduce new seasonal service between JFK and ATH next summer, to meet the strong local demand. The new nonstop service to TLV and ATH from JFK will be the first long-haul international flights that American has launched from New York in more than four years. American will also operate daily seasonal service to GIG beginning in winter 2021 during the peak summer travel period in Rio de Janeiro. And, once the coronavirus pandemic has ended, the new partnership is certain to facilitate American adding new long-haul markets in Europe, Africa, India and South America

As New York’s Hometown Airline®, JetBlue plans to increase flying out of New York’s three major airports, bringing its award-winning experience to more customers. Its growth at JFK will be aimed at offering even more connection opportunities to American’s growing international network of destinations. From both New York and Boston, JetBlue plans to enhance service to strategic markets, including those on the East Coast, West Coast, and in the Southeast. This will further build on JetBlue’s recently announced growth between EWR and nine markets, including Mint service to LAX and SFO.

More choice and loyalty benefits: Codeshare creates more options for customers

JetBlue and American will begin a new codeshare relationship, giving customers seamless access to more destinations, including international service. The codeshare will introduce JetBlue customers to more than 60 new routes operated by American and will introduce American’s customers to more than 130 new routes operated by JetBlue. Codesharing allows customers to book a single itinerary combining flights from both airlines, which will result in a one-stop check-in experience and seamless flight connections from origin to destination.

“JetBlue customers will have more routes and destinations to choose from through American Airlines’ extensive global network,” said Scott Laurence, head of revenue and planning, JetBlue. “Together we will offer customers better options than either of us could alone. This partnership enables JetBlue to bring our low fares and great service to even more customers by expanding our presence in our hometown, growing relevance in Boston, and supporting our successful Mint franchise.”

“Leisure travel is important to our customers, and JetBlue’s network paired with their award-winning service, are the perfect fit,” said Vasu Raja, Chief Revenue Officer at American Airlines. “Both airlines’ customers value access to more destinations, whether it’s a JetBlue customer who wants more direct access to South America from New York, or an American customer who wants more robust service to Florida. Together, we can give our customers the best of both worlds.”

Amtrak and Penndot to Restore Daily Keystone Service

  • New safety initiatives will continue to be in effect for customers and employees

In coordination with state partners at the Pennsylvania Department of Transportation, beginning Monday, July 6, Amtrak is partially restoring full-length Keystone Service (New York – Philadelphia – Harrisburg) with one roundtrip between Harrisburg and New York in response to anticipated increased demand. Keystone Service train 640 will operate through to New York and train 653 will originate in New York and operate through to Harrisburg.

Modified Keystone Service includes nine weekday roundtrips and six roundtrips on weekends. Aside from the one additional roundtrip being added to New York, other Keystone Service trains will continue to temporarily operate between Philadelphia and Harrisburg only. Pennsylvanian (Pittsburgh – Philadelphia – New York) service was previously fully restored in June and includes one daily roundtrip operating normally between New York, Philadelphia and Pittsburgh.

Amtrak continues to take extra steps to keep train travel safe, including limiting bookings to less than half of capacity to maintain ample space for physical distancing onboard trains. All trains will be reserved to allow for physical distancing. Ticketing is now available on Amtrak.com, on Amtrak mobile apps or by calling 800-USA-RAIL.

“We are dedicated to doing everything possible to return service safely. We want everyone to feel comfortable as they navigate this new normal,” said Amtrak President and CEO Bill Flynn.

In addition to aggressive steps to disinfect stations and trains, additional Amtrak measures deliver a New Standard of Travel by including the following:

  • Face coverings: As part of Amtrak’s ongoing commitment to protect customers and front-line employees in response to the coronavirus pandemic, Amtrak is requiring that all customers in stations, on trains and Thruway Buses wear face coverings. The Centers for Disease Control and Prevention recommends the use of simple cloth face coverings or masks to slow the spread of the virus and prevent transmission.
  • Limiting bookings: We are limiting bookings on most trains to allow for more physical distancing in seating areas. Individuals traveling alone may use the seat next to them for personal belongings, while friends and family members will easily find seats together.
  • Air quality: All Amtrak trains are equipped with onboard filtration systems with a fresh air exchange rate every 4-5 minutes.
  • Cashless service: As an added measure to ensure the health and safety of our customers and employees, we are temporarily accepting only cashless payments in stations and on trains.
  • Physical distancing: Signage has been displayed at our busiest stations to indicate safe distances in high customer traffic areas such as waiting rooms, ticket offices, base/top of escalators, lounge entrances, etc. In addition, clear protective barriers have been installed at stations where there were no barriers.

Amtrak Receives $63 Million from FRA for Northeast Corridor Infrastructure Improvements

  • State of Good Repair grant financing will help fund projects in New Jersey and Maryland

The Federal Railroad Administration (FRA) has awarded two Northeast Corridor (NEC) grants to Amtrak as part of its $302.6 million in the State of Good Repair grants to help repair and rehabilitate railroad infrastructure and other assets across the country for 12 projects in nine states. Totaling more than $63 million, the two grants will help fund the Portal North Bridge Project and the Winans to Bridge Improvement project.

“Improving infrastructure in this country is vital to strengthening the economy and providing a safer, more reliable travel experience as we look towards recovery,” said Amtrak President and CEO Bill Flynn. “We thank the FRA, and  our state and NEC partners for their invaluable support in awarding us these grants.”

A total of $55.1 million of the State of Good Repair grant issued by the Federal Railroad Administration was awarded towards the Portal North Bridge Project to replace the century old two-track swing bridge in Kearny, New Jersey with a fixed span. Serving as a critical link for intercity and commuter customers traveling to or from New York City, the current bridge was used by 450 daily trains with passengers making more than 200,000 daily trips on Amtrak’s intercity and New Jersey Transit’s commuter rail services in 2019.

The new bridge is designed as a 2.44-mile modern fixed structure that will eliminate the failures associated with aging infrastructure that causes delays across the NEC. A higher clearance (more than 50 feet above the Hackensack River), will eliminate the need for the bridge to open, allowing for faster operating speeds (from 60 to 90 mph), improved performance and greater reliability for an upgraded customer experience. Early construction of the new bridge began in Fall 2017 and was completed on time and on budget. NJ TRANSIT is seeking a Core Capacity grant from the Federal Transit Administration that would allow major construction to begin as soon as next year.

The Portal North Bridge Project is a key component of the Gateway Program and is identified as a regional priority in the NEC Commission’s five‐year capital plan.

Additionally, as part of a separate project, Amtrak, in partnership with Maryland Department of Transportation, Maryland Transit Administration (MDOT MTA), is also slated to receive $8 million to rehabilitate and upgrade a five‐mile section of track that is part of the Amtrak‐owned NEC mainline near Baltimore.

The project will restore Track A to 90 mph speeds, up from 60 mph, to shorten trip times, improve ride quality, and provide operational flexibility. The work will include upgrades from Winans to Bridge interlockings, replacing timber ties with concrete, installing heavier rail and laying new ballast. Bridge interlocking is located at the north end of West Baltimore Station and Winans is at the south end of Halethorpe Station. These upgrades will enable high‐speed operations on all four tracks on this segment.

The project will also enable service to be maintained while tracks are taken out of service to allow support for construction elements of the B&P Tunnel Replacement project. This work is included in the Northeast Corridor Commission’s five‐year capital plan as a regional priority. To learn more about these and other critical infrastructure projects Amtrak is working on, visit nec.amtrak.com/readytobuild/.

Other grant awards include Amtrak shared joint applications with Connecticut DOT for the WALK Bridge Replacement in Norwalk, Connecticut and Substation 41 Reconstruction in Kearny, NJ as led by NJ TRANSIT as well as other NEC related projects in New York and Pennsylvania. In addition, grants were awarded to various projects in California, Illinois, Michigan and North Carolina that provide benefits to Amtrak and its Long Distance and/or State-Supported customers.

Panasonic to Resume New York Tesla Production Wednesday

Panasonic Corporation (OTC: PCRFY) is looking to restart production at Tesla Inc.’s (NASDAQ: TSLA) New York manufacturing plant on Wednesday, the Verge reported Tuesday.

What Happened

The Japanese electronics giant will spend the first two days performing equipment checks, and standard manufacturing will start Friday, Panasonic North America Solar Energy Division President Mark Shima said in an internal email accessed by the Verge.

Shima told the employees that the company has “completed preparations under close collaboration with Tesla, such as preparation of masks, sanitizers and wipes, set new protocol for entrance, new rules in cafeteria and production floor, new seat assignment in the office area in order to keep 6′ to the next person.”

It isn’t immediately clear if Tesla is also restarting production at the solar panel manufacturing facility.

Why It Matters

A majority of manufacturing at the New York gigafactory has…

 Click the link below to view the full story!

https://finance.yahoo.com/news/panasonic-resume-production-teslas-york-040946178.html

Where Delta is flying in June

Delta’s summer schedule continues to be shaped by customer demand, CDC guidelines and government travel regulations. While the June schedule is significantly reduced in comparison to last year, customers will see the return of several major routes, both U.S. domestic and international, which were previously suspended due to the COVID-19 pandemic.

Customers traveling with Delta can feel confident in a safe flying experience. In addition to requiring customers and employees to wear face coverings throughout the travel journey, Delta has implemented policies like capping seating between 50 and 60 percent to ensure customer spacing on all aircraft, elevated its cleaning measures to deliver a new standard of clean, and streamlined its in-flight services to decrease touch points on board. Customers also have added flexibility if they need to change their plans.

Here’s a snapshot of where Delta is planning to fly in June. This schedule, including routes and frequency, remains subject to change due to the evolving nature of COVID-19. This page may be updated.

U.S. DOMESTIC

Ensuring connectivity for customers with critical travel needs, Delta continues to provide flights to all U.S. hubs and top markets, though frequency is significantly reduced. While Delta has temporarily consolidated operations in some markets served by multiple airports, the airline is adding more flights to its June schedule in comparison to May, primarily in Atlanta, New York and between hubs.

CANADA​

  • Detroit to Montreal (daily)
  • Detroit to Ottawa (daily)
  • Detroit to Toronto (daily)
  • Minneapolis to Calgary (daily)
  • Minneapolis to Edmonton (daily)
  • Minneapolis to Winnipeg (daily)
  • New York-JFK to Toronto (daily)
  • Seattle to Vancouver (daily)

LATIN AMERICA & CARIBBEAN

Caribbean

  • Atlanta to Aruba (less than daily service restarts in second half of June)
  • Atlanta to Bermuda (less than daily)
  • Atlanta to Bonaire (Saturday only service restarts in second half of June)
  • Atlanta to Kingston, Jamaica (less than daily)
  • Atlanta to Montego Bay, Jamaica (daily)
  • Atlanta to Nassau, Bahamas (daily)
  • Atlanta to Providenciales, Turks and Caicos Islands (less than daily)
  • Atlanta to Punta Cana, Dominican Republic (less than daily)
  • Atlanta to San Juan, Puerto Rico (less than daily)
  • Atlanta to St. Croix (Saturday only)
  • Atlanta to St. Lucia (less than daily)
  • Atlanta to St. Maarten (less than daily)
  • Atlanta to St. Thomas (less than daily)
  • New York-JFK to Santiago, Dominican Republic (less than daily)
  • New York-JFK to San Juan, Puerto Rico (less than daily)
  • New York-JFK to Santo Domingo, Dominican Republic (less than daily)​

Central America

  • Atlanta to Liberia, Costa Rica (less than daily service restarts in second half of June)
  • Atlanta to Panama City, Panama (less than daily)
  • Atlanta to San José, Costa Rica (less than daily service restarts in second half of June)
  • Atlanta to San Pedro Sula, Honduras (less than daily)
  • Atlanta to San Salvador, El Salvador (less than daily)​

Mexico

  • Atlanta to Cancun (daily)
  • Atlanta to Mexico City (daily)
  • Detroit to Mexico City (less than daily)
  • Los Angeles to Los Cabos (less than daily)
  • Los Angeles to Puerto Vallarta (less than daily)
  • Salt Lake City to Mexico City (daily)​

South America​

  • Atlanta to Bogotá, Colombia (less than daily)
  • Atlanta to São Paulo, Brazil (less than daily)

TRANS-ATLANTIC

  • Atlanta to Amsterdam (daily)
  • Atlanta to Frankfurt (less than daily)
  • Atlanta to Lagos (less than daily*)
  • Atlanta to Paris-Charles De Gaulle (less than daily)
  • Detroit to Amsterdam (daily)
  • Detroit to London-Heathrow (less than daily)
  • New York-JFK to Amsterdam (less than daily)
  • New York-JFK to Paris-Charles De Gaulle (less than daily)
  • New York-JFK to Tel Aviv (less than daily)​

*Delta’s restart of service to Nigeria is subject to foreign government approval.

Delta’s Frankfurt and London flights also double as scheduled cargo service.

TRANS-PACIFIC

  • Detroit to Seoul-Incheon (daily)
  • Detroit to Shanghai (daily*)
  • Seattle to Seoul-Incheon (less than daily)
  • Seattle to Shanghai (daily*)
  • ​Seattle to Tokyo-Haneda (less than daily)

*Delta’s restart of passenger flights to China is subject to government approval. We will also operate cargo-only scheduled service from Shanghai to Atlanta and Los Angeles. Read more on our cargo flights to Asia.

Delta’s second quarter schedule is 85 percent smaller than last year, with reductions of 80 percent in U.S. domestic capacity and 90 percent internationally.

Avianca Files for Bankruptcy Protection

(Reuters) – Avianca Holdings, Latin America’s second-largest airline, filed for bankruptcy on Sunday, after failing to meet a bond payment deadline, while its pleas for coronavirus aid from Colombia’s government have so far been unsuccessful.

If it fails to come out of bankruptcy, Bogota-based Avianca would be one of the first major carriers worldwide to go under as a result of the pandemic, which has crippled world travel.

Avianca has not flown a regularly scheduled passenger flight since late March and most of its 20,000 employees have gone without pay through the crisis.

“Avianca is facing the most challenging crisis in our 100-year history,” Avianca Chief Executive Anko van der Werff said in a news release.

While Avianca was already weak before the coronavirus outbreak, its bankruptcy filing highlights the challenges for airlines that cannot count on state rescues or on such rescues coming fast enough. Avianca is still hoping for a government bailout.

“This isn’t a surprise at all,” said Juan David Ballen, chief economist at Casa de Bolsa brokerage in Bogota. “The company was heavily indebted despite the fact it tried to restructure its debt last year.”

Avianca, the second-oldest continually operating airline in the world after KLM, had $7.3 billion in debts in 2019. The airline filed for Chapter 11 bankruptcy in New York and said it would continue operations while it restructured its debts.

The Colombian Association of Civil Aviators (ACDAC), a union representing many Avianca employees, said it supported the move.

Avianca already went through bankruptcy in the early 2000s, from which it was rescued by a Bolivian-born oil businessman, German Efromovich.

Efromovich grew Avianca aggressively but also saddled the carrier with significant debt until he was ousted from the airline last year in a boardroom coup led by United Airlines Holdings Inc. He still owns a majority stake in the carrier.

United stands to lose up to $700 million in loans related to Avianca.

Efromovich told Reuters on Sunday that he disagreed with the decision to file for bankruptcy and that he was not involved in making it.

Click the link below to read the full story!

https://finance.yahoo.com/news/colombias-avianca-airline-files-bankruptcy-174035790.html

The logo of Avianca Airlines is pictured at a counter following the cancellation of an Avianca flight to San Salvador due to coronavirus fears in Mexico City
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