Avianca

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Avianca S.A.
IATA
ICAO
Callsign
AV AVA AVIANCA
FoundedDecember 5, 1919; 104 years ago (1919-12-05) (as
M (FY 2008)
Websitewww.avianca.com

Avianca S.A. (

air transport. It is listed on the Colombia Stock Exchange.[10]

Through SCADTA, Avianca is the world's second oldest extant airline after KLM and celebrated its 100th anniversary in December 2019. It is the oldest airline in the Western Hemisphere.[11] It became an official member of Star Alliance on June 21, 2012, after a process that lasted approximately 18 months from the initial announcement[12] of its invitation to join the alliance.[13] On May 10, 2020, Avianca filed for Chapter 11 bankruptcy in a court in New York City, and liquidated its subsidiary Avianca Perú, due to the COVID-19 pandemic crisis.[14][15][16]

History

SCADTA (1919–1940)

A SCADTA Junkers W 34 "Magdalena", circa 1920s

The airline traces its history back to December 5, 1919, in the city of

Junkers F.13, transporting 57 pieces of mail. The flight was piloted by German Helmuth von Krohn. This and another aircraft of the same type were completely mechanically constructed monoplanes, the engines of which had to be modified to efficiently operate in the climate of the country. There were nine aircraft in the fleet with a total range of 850 km (528 mi) which could carry up to four passengers and two crewmen. Due to the topographic characteristics of the country and the lack of airports at the time, floats were adapted for two of the Junkers aircraft to make water landings in the rivers near different towns. Using these floats, Helmuth von Krohn was able to perform the first inland flight over Colombia on October 20, 1920, following the course of the Magdalena River
; the flight took eight hours and required four emergency landings in the water.

Soon after the airline was founded, German scientist and philanthropist Peter von Bauer became interested in the airline and contributed general knowledge, capital and a tenth aircraft for the company, as well as obtaining concessions from the Colombian government to operate the country's airmail transportation division using the airline, which began in 1922. This new contract allowed SCADTA to thrive in a new frontier of aviation. By the mid-1920s, SCADTA started its first international routes that initially covered destinations in Venezuela and the United States. In 1924, the aircraft that both Ernesto Cortissoz and Helmuth von Krohn were flying crashed into an area currently known as Bocas de Ceniza in Barranquilla, killing them. In the early 1940s, Peter von Bauer sold his shares in the airline to the US-owned Pan Am.

National Airways of Colombia (1940–1994)

Boeing 747-100 at Miami International Airport
in 1993

On June 14, 1940, in the city of Barranquilla, SCADTA, under ownership by United States businessmen, merged with regional Colombian airline SACO, forming the new Aerovías Nacionales de Colombia S.A. or Avianca. Five Colombians participated in this: Rafael María Palacio, Jacobo A. Correa, Cristobal Restrepo, and Aristides Noguera, as well as German citizens Albert Teitjen, Werner Kämerer, and Stuart Hosie, while the post of first President of Avianca was filled by Martín del Corral. Avianca claims SCADTA's history as its own.

In 1946, Avianca began flights to

Melbourne Olympics on a 61-hour trip, stopping only to refuel.[18]

During the 1960s, the company built the

Boeing 747-100. Three years later, it started operations with more 747s, including two Combi aircraft, mixing cargo and passenger operations.[19]

In 1981, Avianca undertook the construction of a new exclusive terminal called the

Terminal Puente Aéreo, which was eventually inaugurated by President Julio César Turbay Ayala. Avianca's original purpose for the terminal was for flights serving Cali, Medellín, Miami, and New York.[20]

Merger system (1994–2002)

in 2004

In 1994, Avianca, the regional carrier

Bell
helicopters. In 1996, Avianca Postal Services became Deprisa, which provided various mail services.

On December 10, 1998, Avianca officially opened its new hub in Bogotá, offering around 6,000 possible connections per week, and an increased number of frequencies, schedules, and destinations, taking advantage of the privileged geographical location of the country's capital, for the benefit of Colombian and international travelers between South America, Europe, and North America.

Summa Alliance (2002–2004)

After the September 11 attacks, Avianca, SAM, and their major rival ACES joined efforts to create the Alianza Summa, which began merged operations on May 20, 2002, to offer a more efficient service, with concerns to quality, quantity, security and competition in a new struggling marketplace. However, adverse circumstances within the industry and markets forced the alliance to disband. In November 2003, the Alianza Summa was disbanded, ACES was liquidated altogether and SAM was acquired to be a regional carrier under Avianca's brand.

American Continent Airways (2004–2009)

On December 10, 2004, Avianca concluded a major reorganization process, undertaken after filing for

National Federation of Coffee Growers of Colombia
, allowing the airline to obtain funds for US$63 million, in the 13 months following withdrawal from bankruptcy.

Avianca's former logo (2005–2013)

Under this plan, Avianca was bought by Synergy Group and was consolidated with its subsidiaries

VIP
. The company's full legal name was changed from Aerovías Nacionales de Colombia (National Airways of Colombia) to Aerovías del Continente Americano (Airways of the American Continent), retaining the acronym Avianca. On February 28, 2005, Avianca presented its new logo and livery.

Avianca-TACA merger (2009–2013)

in 2009

In October 2009, it was announced that Avianca would merge with

AviancaTaca Holding
, which instantly became one of the region's largest airlines, with 129 aircraft and flights to more than 100 destinations.

In November 2009, the airline's Chief Executive Fabio Villegas announced that the airline was looking to replace its

GECAS
. The aircraft were delivered from February to April 2011.

Star Alliance

On November 10, 2010, Star Alliance announced that Avianca (and its merger counterpart, TACA) were full members in 2012. Due to Avianca's entry into Star Alliance, it ended its codeshare agreement with Delta Air Lines and began a new codeshare agreement with United Airlines. TACA had been codesharing with United Airlines since 2006.[24] On June 21, 2012, Avianca and TACA were both officially admitted into Star Alliance.

Avianca Holdings (2013–2019)

On March 21, 2013, at the annual general meeting, the shareholders approved the change of corporate name from AviancaTaca Holding to

Avianca Holdings.[25]
TACA and all other AviancaTaca airlines changed their brand to Avianca on May 28, 2013.

As of 2017, Avianca operates the second-most daily international flights from Miami with 16, second only to American Airlines.

In August 2018, Avianca had some operational difficulties due to problems with the platform it used to assign crew schedules. This resulted in the cancellation of several flights within Colombia. Likewise, due to the stoppage of ACDAC pilots in 2017, only in October 2018 were all flight itineraries managed by the airline restored.

On March 1, 2019, Avianca launched a subsidiary named

ATR-72s on short regional flights within Colombia.[26]

Airbus A320-200
, painted in retro livery, celebrating the airline's 100th anniversary

2020 bankruptcy (2020-2021)

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 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 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.[27]

Avianca implemented numerous cost-reduction plans during and following their bankruptcy including increasing the passenger capacity and redesigning the cabin of their

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.[28][29]

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.[30] Their global headquarters remains in Bogotá. On November 2, 2021, Avianca's reorganization plan was approved by the court,[31] 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.[32]

In October 2023, the company announced a rebrand and remodel of its business model. Avianca changed its name from Avianca to avianca, adjusting its operating model to a more low-cost friendly one.

Abra Group and Viva Air merger (2022-present)

On April 29, 2022, Avianca announced plans to acquire low-cost competitor Viva Air Colombia and its subsidiary Viva Air Perú.[33][34] On May 11, 2022, it was announced that Avianca planned to merge with Viva Air, and Gol Linhas Aéreas Inteligentes to form the Abra Group, and that Avianca would be the acquiring company.[35][36] The merger was rejected by the Colombian Civil Aviation Authority in November 2022.[37] Avianca stated that the rejection of the merger would not affect the plans for the Abra Group.[38]

In September 2022, Ecuador's Superintendency for the Control of Market Power became the first government body to approve the merger.[39] In December 2022, Avianca stated that they had reached all necessary agreements for the group bar "certain financing", and that they had obtained approval from regulatory bodies in Brazil and the United States. Avianca also stated that they do not need regulatory approval in Colombia because GOL has no presence in the country, and hence there would be no overlap in Colombia.[40]

On January 19, 2023, the Ministry of Transport and Aerocivil formally annulled the November 2022 decision to reject the Avianca-Viva Air merger, citing "procedural irregularities" found within the first review process. A second review is due to take place in "an urgent manner", because the merger proposal was filed under "exception for a company in crisis", referencing Viva Air's financial situation.[41][42]

On March 21, 2023, Aerocivil announced that it would approve the Avianca-Viva merger conditionally if the new entity complied with the following: to either refund or honor passengers' canceled bookings made before Viva Air suspended operations; to return some in-demand slots at Bogotá's El Dorado Airport previously held by Viva Air; to maintain Viva Air's low-cost model for consumers within Colombia; to reinstate flights between Bogotá and Buenos Aires; to maintain a fare cap on routes where the entity is the only operator; and, as the new entity would hold a majority of the market share in Colombia, to ensure that the market remains dynamic.[43]

On May 13, 2023, after analyzing the "financial and technical implications" of the merger under these conditions, Avianca withdrew its plans for the acquisition of Viva Air, given the strict requirements of Aerocivil and the damage that these would have on the airline's economy.[44][45]

Corporate affairs

Esguerra Saenz Urdaneta Samper

Avianca's headquarters are on Avenida El Dorado and between Carrera 60 and Gobernación de Cundinamarca, located in the Ciudad Salitre area of Bogotá. The building is located next to the Gran Estación.[46] Its previous head office was at Avenida El Dorado No. 93-30.[47]

Destinations

Avianca's hub is in

Medellin, Cali, Barranquilla, San José, and Miami
, in the latter of which Avianca is the largest foreign carrier by number of passengers.

Codeshare agreements

Avianca has codeshare agreements with the following airlines:[48]

Interline agreements

Avianca has an interline agreement with Boliviana de Aviación.[50]

LifeMiles

The

Aeromexico and Iberia
.

The program was launched in 2011 with the merger of Avianca and TACA, replacing its former AviancaPlus program. LifeMiles has been awarded 14

Freddie Awards
for its outstanding performance and promotions in the Americas during the last 9 years.

LifeMiles has four elite tiers:

  • Red Plus (Star Alliance Silver)
  • Silver (Star Alliance Silver)
  • Gold (Star Alliance Gold)
  • Diamond (Star Alliance Gold)

Fleet

Current fleet