Bogotá D.C., May 18, 2020 – With the goal of preserving and reorganizing, by the best possible means, the business of Avianca Holdings S.A. (hereinafter the “Company” or “Avianca”) in light of the COVID-19 crisis, Avianca and certain of its subsidiaries voluntarily filed on May 10, for reorganization under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York; concurrently, the Board of Directors of Avianca Peru S.A., the Peruvian airline and subsidiary of the Company (hereinafter “Avianca Peru ”), agreed to terminatee its operations in Peru and begin a dissolution and liquidation process under local Peruvian law in order to preserve and protect Avianca’s businesses in the face of the COVID-19 crisis.

In the future, Avianca will continue to serve routes to and from Peru through its airlines in Colombia, El Salvador and Ecuador, once the restrictions imposed by the authorities under the current health emergency are lifted. For customers with valid tickets purchased directly to or from Peru, several exchange, reaccomodation and voucher options will be available.

Process implementation

A General Shareholders Meeting of Avianca Peru agreed to proceed with a voluntary liquidation and dissolution of Avianca Peru. Currently, the liquidation proceeding is in process of liquidating liabilities and assets of such entity. Such process is under the supervision of Estrategia Consultores S.A.C, the designated independent liquidator. Although the agreement of the General Shareholders’ Meeting has already been published, its registration in the Public Registry of Peru is pending due to the fact the offices in which said registration must be made are closed due to the state of emergency in such country.

Under this liquidation process, the payment of social benefits of the employees of Avianca Peru shall have priority, which shall be made within the framework of the liquidation. Avianca Peru employs 906 employees.