Editing Avianca (section)

===2020 bankruptcy (2020–2021)===
{{See also|Impact of the COVID-19 pandemic on aviation}}

Avianca had significant financial liabilities in 2019. Because of this, they issued more debt to cover short-term liabilities and concluded a debt exchange on December 31, 2019. In response to the global outbreak of [[COVID-19]], the Colombian government's [[COVID-19 pandemic in Colombia|lockdown]] suspended Avianca's domestic and international operations; most of the company’s 20,000 employees went without pay throughout this period, and the airline operated no scheduled passenger flights between late March and May outside of repatriation missions. As a result of this temporary cessation of business, the company had seen 80% of its revenue stopped.

[[Avianca Holdings]] and 23 affiliated debtors filed for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]] in the [[United States District Court for the Southern District of New York]] on May 10, 2020, as a direct result of the [[COVID-19 pandemic]] and subsequent global shutdown, and their financial situation before and during the crisis. The airline holding liquidated their subsidiary [[Avianca Perú]] the same day. The debtors were granted joint administration of the cases under Case No. 20-11133. The airline had accumulated a total debt of USD 7.3 billion at the end of 2019.<ref name=":0">{{cite web|url=https://www.reuters.com/article/us-avianca-holding-bankruptcy-idUSKBN22M0N1|title=Latin America's second-biggest airline, Avianca, driven to bankruptcy by coronavirus|date=10 May 2020|access-date=10 May 2020|work=[[Reuters]]|last1=Rochabrun|first1=Marcelo|last2=Kumar|first2=Devika Krishna|last3=Bocanegra|first3=Nelson}}</ref>

Avianca implemented numerous cost-reduction plans during and following their bankruptcy including increasing the passenger capacity and redesigning the cabin of their [[Airbus A320]]s, simplifying their fleet to only the A320 family and [[Boeing 787]], the latter of which will also feature an economy class cabin redesign, and introducing new, cheaper, and more competitive fares with increased options for flexibility including checked and carry-on bags, seat selection, and priority boarding.<ref>{{Cite web|last=de 2021|first=2 de Junio|title=Avianca anuncia que saldrá del Capítulo 11 y superará la crisis financiera en los próximos meses|url=https://www.infobae.com/america/colombia/2021/06/02/avianca-anuncia-que-saldra-del-capitulo-11-y-superara-la-crisis-financiera-en-los-proximos-meses/|access-date=2021-06-04|website=infobae|date=2 June 2021 |language=es-ES}}</ref><ref>{{cite web|title=Avianca signs agreement with Easyfly and farewells its ATR fleet|url=https://www.aviacionline.com/2021/11/avianca-signs-agreement-with-easyfly-and-farewells-its-atr-fleet/|website=Aviaciononline|date=4 November 2021|access-date=5 December 2021}}</ref>

In November 2021, Avianca Holdings announced they would move their legal address from [[Panama]] to the [[United Kingdom]], and that they would change their name to [[Avianca Group]].<ref>{{cite news|url=https://www.reuters.com/business/aerospace-defense/colombias-avianca-move-domicile-united-kingdom-2021-11-03/|title=Colombia's Avianca to move domicile to the United Kingdom|website=Reuters.com|date=3 November 2021|access-date=November 3, 2021}}</ref> Their global [[headquarters]] remains in [[Bogotá]]. On November 2, 2021, Avianca's reorganization plan was approved by the court,<ref>{{cite news|title=Avianca says U.S. court approves bankruptcy reorganization plan|url=https://www.reuters.com/business/cop/avianca-says-us-court-approves-bankruptcy-reorganization-plan-2021-11-02/|website=Reuters|date=2 November 2021|access-date=5 December 2021}}</ref> and on December 1, 2021, more than a year and a half after filing, Avianca emerged from Chapter 11 bankruptcy for the second time in its history.<ref>{{cite news|title=Colombian airline Avianca says has completed bankruptcy process|url=https://www.reuters.com/markets/europe/colombian-airliner-avianca-says-has-completed-bankruptcy-process-2021-12-01/|website=Reuters|date=December 2021|access-date=5 December 2021}}</ref>