Are the days numbered for LifeMiles and Avianca?

Last week I read a piece over on Loyalty Lobby about the struggling financial situation of Avianca Airlines. This is on the heels of the near-total collapse of Avianca Brazil. The Brazilian wing of the airline is so far in debt that assets are being repossessed and their airport slots are being auctioned off.

The fact that the Colombia-based parent airline is struggling as well indicates to me that we could potentially see some major changes, if not a catastrophic collapse of the Latin American airline. They posted a loss of $68 million during the first quarter of this year, and much of their debt is being sold off by investors looking to rid themselves of the liability. Avianca shares are trading at a mere $3, which is…