Officials claim the carrier is now more efficient and financially stronger, with significantly reduced debt and over $1 billion in liquidity.

Rohit Philip, chief financial officer of Avianca, said: “This is an important day for Avianca and all of our stakeholders. We are pleased to be emerging successfully from this process, with Avianca in a stronger financial position to continue serving our customers and flying the skies for many years to come. We look forward to continuing to execute on our new business vision and capitalizing on the recovery in travel demand to drive our future success.”

The carrier initially sought to restructure its operations in May last year, during the early stages of the Covid-19 pandemic. Adrian Neuhauser, chief executive of Avianca, said: “We look forward to the company’s future success as we continue building upon Avianca’s rich history across Latin America and internationally. We appreciate the support of our loyal customers, partners and lenders throughout this process.”

As per the approved plan of reorganisation, the new shareholders will invest in Avianca Group International Limited, a new holding company to be domiciled in the United Kingdom. The new entity will consolidate the group’s investments in all subsidiaries. This includes Aerovias del Continente Americano, the Colombian subsidiary, and TACA International, the Central American operation.

The prior holding company, Avianca Holdings was domiciled in Panama.