SAO PAULO (Reuters) – Avianca Holdings had identified since late March that the Colombian airline’s cash pile would solely cowl a couple of months of bills whereas its complete fleet sat grounded due to aggressive anti-coronavirus lockdowns. FILE PHOTO: An aerial view exhibits Colombian airline Avianca’s planes parked at El Dorado Worldwide Airport amid the coronavirus illness (COVID-19) outbreak in Bogota, Colombia April 7, 2020. REUTERS/Luisa GonzalezIn these circumstances, Sunday’s chapter submitting was hardly a shock. What was stunning was the absence of 1 key stakeholder: the Colombian authorities. That stands in stark distinction to international locations like France, Germany and the US, which made defending their airline industries an early precedence of the disaster. At stake for Avianca, the world’s second-oldest airline, are 20,000 jobs, largely in Colombia. However Bogota’s largely hands-off strategy is hardly an exception among the many Latin American governments, which have largely ignored the business’s clamor for bailouts. In public, LATAM Airways Group (LTM.SN), Gol Linhas Aereas Inteligentes (GOLL4.SA), Aeromexico (AEROMEX.MX) and Avianca AVT_p.CN, amongst others, say they’re actively negotiating authorities rescue packages. However behind the scenes there’s rising concern about when outcomes may materialize and if it won’t be too little too late. “It is not coming fast enough,” stated one airline supply, who requested anonymity to not have an effect on his service’s negotiations. Avianca’s personal numbers paint a grim image for a service that not too long ago confirmed sufficient promise to attract curiosity from United Airways (UAL.O), which sought a detailed enterprise partnership. At first of the yr, Avianca was worth $470 million – it’s now worth $17 million, two pennies a share. By the tip of March, after every week on the bottom, Avianca had $304 million in out there cash with nearly no cash coming in and mounting bills. By Could, it will have used greater than half of that simply to make two months of payroll and settle a debt cost. Because the debt deadline approached, its chief government Anko van der Werff publicized Avianca’s want. It was to no avail. “In Latin America we have not seen as much (government) help as in other regions,” stated Gonzalo Yelpo, authorized director at ALTA, a regional airline business group. Analysts warn that the disaster could possibly be notably hazardous for carriers within the area, who misplaced cash lately whereas most others basked in earnings. ALTA has warned of a “bankruptcy pandemic.” “The starting point is worse for Latin American airlines,” stated Maurício França, of L.E.Okay Consulting, which estimates Brazil’s airways misplaced 11 billion reais ($1.89 billion) between 2014 and late 2019. Avianca’s chapter might begin to flip the tide, however it’s unclear how briskly. On Monday, Colombia stated it will contemplate rescue loans for Avianca. On Tuesday, Peru stated it was contemplating serving to carriers, together with overseas airways. However that comes too late for Avianca, which is shutting down its Peru operation and shedding 1,000 workers there. In Brazil, airways have been deadlocked on loan negotiations for weeks. Chile stated “direct aid” was not on the desk for LATAM, its largest service. In Argentina and Mexico, left-wing governments have urged they won’t rescue large firms, though taxpayers straight personal Aerolineas Argentinas, complicating the politics. AIR TRAVEL GROUNDED Avianca confronted an ideal storm with its residence base in Colombia and hubs in El Salvador, Ecuador and Peru. These 4 international locations shut down all industrial air journey to guard their fragile healthcare techniques. Nevertheless it left Avianca grounded. Avianca’s closest rival, LATAM, didn’t endure to the identical extent as a result of it could actually nonetheless fly in Chile and Brazil, its primary markets. Now Avianca, which had agreed to purchase greater than 100 Airbus jets earlier than 2029, faces an uphill path to restoration. It agrees it neither wants nor can afford these plane. Within the short-term, Avianca says it expects spending to considerably outpace its income, signaling that it “may eventually need a substantial new infusion of capital.” Panama’s Copa Holdings SA (CPA.N), equally grounded with nowhere to fly, is a few third smaller than Avianca and has stated it was burning via $85 million a month. Even at that fee, Avianca would have cash for lower than 4 months. Nearly two months have already passed by. Making issues worse, the coronavirus pandemic is at an earlier stage in Latin America than in the US, Europe or Asia, pushing again any possible financial reopening. “The shutdown in Latin America was in a way tighter and stronger,” stated an business supply. “And now there’s bigger reluctance there on reopening the markets.” Reporting by Marcelo Rochabrun in Sao Paulo; Further reporting by Marco Aquino in Lima, Carlos Vargas in Bogota and Anthony Esposito in Mexico Metropolis; Enhancing by Christian Plumb and Sam HolmesOur Requirements:The Thomson Reuters Belief Ideas.