Colombia’s flag carrier, Avianca, has submitted a reorganization plan to a U.S. bankruptcy court, Flight Global reported. The Bogota-based airline’s plan, submitted to the bankruptcy court for the Southern District of New York on Aug. 10, outlines its obligations to creditors and the settlement of claims. It says a new strategy will help it simplify operations and position Avianca to thrive in the Latin American market. Avianca and its Latin American peers Aeromexico and LATAM Airlines declared bankruptcy last year after the coronavirus decimated global air travel demand. Airlines shrunk networks, retired and stored aircraft, and laid off staff in an effort to preserve cash. In documents submitted to the court this week, Avianca outlines a new fleet plan and says it expects to emerge from the proceedings with 109 aircraft, down from the 158 it operated prior to 2020. It has also been working with airframers and lessors to restructure future aircraft deliveries. The airline has 66 aircraft in service and 29 in storage, according to Cirium fleets data.
