A US Bankruptcy Court has given interim approval to
"first day" motions for Colombian carrier Avianca, enabling it to
continue operations after filing for Chapter 11 protection on Sunday.
The approval enables Avianca to pay wages, honour
obligations to travel agencies and vendors and maintain operational continuity,
according to the carrier. "We are committed to maintaining connectivity
for people, families and businesses and we look forward to gradually resuming
our passenger flights as travel restrictions are lifted," Avianca CEO Anko
van der Werff said in a statement.
Avianca will return to US Bankruptcy Court on 11 June in
hopes of getting final approval for the interim orders and is in discussion
with the Colombian government and other governments where it operates
"regarding financing structures that would provide critical additional
liquidity", according to the airline. It will use cash on hand as well as
revenue generated by the operations it still is running currently, including
cargo, as it reorganises.
In addition, Avianca has begun to liquidate its operations
in Peru so it can "focus on core markets" when it comes out of
bankruptcy protection.
Avianca's scheduled passenger operations have been grounded
since mid-March, which has dealt an 80 per cent blow to its consolidated
revenue. The carrier represents more than half of Colombia's domestic aviation
market and employs more than 21,000 people across Latin America.