Brazil’s fourth-largest airline has announced plans to file for bankruptcy but will continue to fly.
“Passengers can have complete peace of mind to make reservations and buy tickets, since all sales will be honoured and flights will be operating,” according to a statement from Avianca Brasil.
The airline has debts of about $127 million, and recently failed to reach a deal with the leaseholders on its aircraft on outstanding payments, promoting the move to seek bankruptcy, officials said.
Avianca Brasil operates 60 Airbus aircraft on domestic and international routes. Creditors have been seeking the return of 26 of those planes, along with 52 engines.
Founded in 1998, the airline has hubs at Brasília International Airport and São Paulo-Guarulhos International Airport. Its international destinations include the US, Colombia, and Chile.
Avianca Brasil owes money to Brazil’s state oil company Petrobras and Guarulhos Airport, among others. The airline, like Colombia-based Avianca Airlines, is owned by Synergy Group, but the two carriers remain separate legal entities.