⁍ Avianca Holdings came under criticism in Colombia for paying its top two executives $6 million in bonuses in May.

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⁍ At the time, the carrier had furloughed most of its employees without pay and was preparing a bankruptcy filing.

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⁍ Five days later, the airline filed for Chapter 11 bankruptcy protection in the U.S.
Avianca defended the bonuses, saying they were necessary ‘as an incentive for the company’s management team to continue to provide services to Avianca

– When Colombia’s Avianca filed for bankruptcy protection in the US five days after paying its top two executives $6 million in bonuses, the airline said the payments were necessary “as an incentive for the company’s management team to continue to provide services to Avianca.” Not so fast, reports Reuters, citing bankruptcy court documents submitted by Avianca itself. CEO Anco van der Werff received $3.7 million and CFO Adrian Neuhauser $2.8 million on May 6. The bonuses were paid just days after the airline asked most of its 20,000 employees to take unpaid leaves during the H1N1 pandemic, while its main rival, LATAM Airlines Group, cut employees by half, notes the New York Times. “Avianca is facing the most challenging crisis in our 100-year history,” van der Werff said at the time.