Bogota (dpa) - Colombian airline Avianca has declared insolvency following a massive drop in sales due to the coronavirus pandemic, it announced Sunday.
The holding company and several subsidiaries applied for protection from creditors under the US Bankruptcy Code on Sunday, the airline announced.
Avianca nevertheless aims to continue operations, preserve jobs and reposition itself economically.
The company largely ceased normal operations in mid-March, due to global travel restrictions in place to stop the coronavirus spreading.
Revenue then dropped by more than 80 per cent.
"The effects of the pandemic present us with the greatest challenge in the 100-year history of our company," said CEO Anko van der Werff.
Avianca is a key airline in Latin America, flying to many destinations in the region, as well as to North America and Europe.
The predecessor company of Avianca was founded in 1919 as the Colombian-German Air Transport Company, making Avianca one of the world's oldest airlines.
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