Airbus (Toulouse) has issued this statement:

Following a Memorandum of Understanding (MOU) announcement in February, Avianca (Bogota) has signed a purchase agreement for 100 A320neo Family aircraft, the largest single order ever made in Latin America’s aviation history. The agreement, which includes A319neo, A320neo and A321neo aircraft (below), will allow Avianca to maintain one of the youngest fleets in the region as the airline aims to replace airplanes currently operating from their Bogota, Lima and San Salvador hubs.

Image Above: Airbus.

Established in Colombia in 1919, Avianca was the first airline in the Americas, and is the second oldest airline in the world. The Airbus-Avianca partnership was taken to a new level in 1998 when TACA (now part of Avianca), LAN, and TAM placed a joint order for 90 single-aisle aircraft. This was the largest joint contract ever signed in Latin American commercial aviation history. To date, the Avianca airline group has ordered nearly 300 aircraft including 276 A320 Family (among them, 133 A320neo Family) and 15 A330 Family.

To date, the A320neo program has 345 firm orders from six customers in Latin America — Avianca, Azul, Interjet, LATAM Airlines Group, VivaAerobus and Volaris. With more than 950 aircraft sold and a backlog of nearly 500, more than 550 Airbus aircraft are in operation throughout Latin America and the Caribbean. In the last 10 years, Airbus has tripled its in-service fleet, while delivering more than 60 percent of all aircraft operating in the region.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. Avianca will remain an Airbus A320 Family operator. Current generation Airbus A320-214 N724AV (msn 6153) climbs away from Miami International Airport (MIA).

Avianca (Colombia) aircraft slide show: 

Synergy Aerospace Corporation, Avianca’s largest shareholder and owner of Avianca Brasil (Sao Paulo), has signed a Memorandum of Understanding (MOU) with Airbus for 62 A320neo Family aircraft. The agreement paves the way for Avianca Brasil to base its fleet renewal and network growth strategy on the A320neo Family.

“These 62 A320neo aircraft will make it possible for Avianca Brasil (OceanAir Linhas Aereas) to take an important leap toward growing and modernizing its fleet, while improving passenger experience,” said German Efromovich, Chairman of Synergy.

Synergy has ordered 10 A350 XWBs, six A330-200 passenger, one A330-200 Freighter and 20 A320 Family aircraft. Avianca Brasil currently operates 38 A320 Family aircraft and one A330 Freighter aircraft.

Once the order is firm, Airbus will have sold 407 A320neo aircraft to seven customers in Latin America — Avianca, Azul, Interjet, LATAM, Synergy, VivaAerobus and Volaris. With more than 950 aircraft sold and a backlog of almost 500, nearly 600 Airbus aircraft are in operation throughout Latin America and the Caribbean. In the past 10 years, Airbus has tripled its in-service fleet while delivering more than 60 percent of all aircraft operating in the region. In May, Airbus celebrated its 500th aircraft delivery in Latin America.

Top Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Avianca in Brazil operates the current version of the Airbus A319 and A320. Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-214 WL PR-OCD (msn 6173) with Sharklets arrives at Sao Paulo (Guarulhos) in the new 2013 Avianca delivery.

Avianca Brasil aircraft slide show: 

Uniformed Staff from Star Alliance member carriers welcoming their new colleagues from Avianca Brasil at the airline’s official joining ceremony in Sao Paulo Brazil.

Avianca Brasil (OceanAir Linhas Aereas dba) (Sao Paulo) issued this statement:

United Airlines today announced it has reached an agreement with Compañía Panameña de Aviación S.A. (Copa Airlines), Aerovías del Continente Americano S.A. (Avianca) and many of Avianca’s affiliates, for a joint business agreement (JBA) that, pending government approval, is expected to provide substantial benefits for customers, communities and the marketplace for air travel between the United States and 19 countries in Central and South America.

Many more choices for customers

By integrating their complementary route networks into a collaborative revenue-sharing JBA, United, Avianca and Copa plan to offer customers many benefits, including:

• Integrated, seamless service in more than 12,000 city pairs
• New nonstop routes
• Additional flights on existing routes
• Reduced travel times

Drive economic benefits for consumers and the communities we serve

The carriers expect the JBA to drive significant traffic growth at major gateway cities coast to coast, which is expected to help bring new investment and create more economic development opportunities. Further, the JBA is expected to provide customers with expanded codeshare flight options, competitive fares, a more streamlined travel experience and better customer service, resulting in significant projected consumer benefits.

Better serve our customers

Additionally, allowing the three carriers to serve customers as if they were a single airline is expected to enable the companies to better align their frequent flyer programs, coordinate flight schedules and improve airport facilities.

“This agreement represents the next chapter in U.S.-Latin American air travel,” said Scott Kirby, United’s president. “We are excited to work with our Star Alliance partners Avianca and Copa to bring much-needed competition and growth to many underserved markets while providing a better overall experience for business and leisure customers traveling across the Western Hemisphere.”

“We are delighted to further solidify our existing partnership with United Airlines and look forward to increasing service options for our customers by working more closely with Avianca,” said Pedro Heilbron, Copa Airlines’ chief executive officer. “We believe this agreement benefits our passengers by providing competitive fares and a superior network of more than 275 destinations throughout Latin America and the U.S., and promotes further growth and innovation within the airline industry in the Americas.”

“We are certain that together we are stronger in the United States – Latin America market than any of the three airlines individually,” said Hernan Rincon, Avianca’s executive president – chief executive officer. “This partnership will allow Avianca to strengthen its position as a first-level player in the airline industry in America as we will expand our scope in the continent with United and Copa, offering better connectivity to our customers.”

JBAs drive competition that benefits customers

Although JBAs have been proven around the world to benefit consumers and enhance competition, currently 99 percent of the U.S. carrier passenger traffic that makes connections in Central and South America does so without a JBA. Competition in the U.S.-Latin American market has grown and includes a diverse set of carriers offering service across multiple price points. Yet the market lacks a comprehensive revenue-sharing, metal-neutral network of carriers and the associated heightened competitive forces that drive value and better consumer experiences. The JBA represents an innovative, best-in-class new product offering that will make competition in this robust market even stronger.

“Our analysis shows that a metal-neutral JBA among United, Copa and Avianca will provide substantial benefits to consumers traveling between the relevant countries,” said Dr. Darin Lee, executive vice president of economic consulting firm Compass Lexecon and airline industry expert. “This JBA will enable United, Copa and Avianca to compete more effectively, offer competitive fares, and increase service, encouraging innovation and establishing a more robust and vibrant marketplace.”

To enable the deep coordination required to deliver these benefits to consumers, communities and the marketplace, United, Copa and Avianca plan to apply in the near term for regulatory approval of the JBA and an accompanying grant of antitrust immunity from the U.S. Department of Transportation and other regulatory agencies. The parties do not plan on fully implementing the JBA until they receive the necessary government approvals. The JBA currently includes cooperation between the U.S. and Central and South America, excluding Brazil.  With the recently concluded Open Skies agreement between the U.S. and Brazil, the carriers are exploring the possibility of adding Brazil to the JBA.

Top Copyright Photo (all others by the airlines): United Airlines Boeing 777-224 ER N78017 (msn 31679) (Star Alliance) LHR (Keith Burton). Image: 944609.

United aircraft slide show (Boeing):

From Reuters:

Avianca Brasil has canceled more than 1,300 flights, Brazilian media reported on Saturday, as the bankrupt airline was forced to reduce its fleet by more than two-thirds.

The cancellations, for April 19-28, are nationwide, with airports in Brasilia, Guarulhos in Sao Paulo, and Galeao in Rio de Janeiro, the hardest hit, O Estado de Sao Paulo reported.

Avianca, which filed for bankruptcy protection in December, has to return 18 leased planes after Easter, Brazil’s National Civil Aviation Agency said on Thursday, reducing its fleet to just eight aircraft.

Earlier this month, the airline had 35 planes.

Top Copyright Photo: Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-251N WL PR-OBF (msn 7323) GRU (Rodrigo Cozzato). Image: 938773.

Avianca Brasil aircraft slide show:

SMBC Aviation Capital has announced the delivery of one Boeing 787-9 aircraft (N797AV, msn 43983) equipped with Trent 1000 engines to Avianca.

This aircraft is the first delivery of a three Boeing 787-9 sale and lease back PDP financed transaction with the airline. The second and third aircraft are expected to be delivered in 2021

Avianca (Colombia) (Bogota) is planning to introduce the new Boeing 787-8 Dreamliner on the Bogota – New York (JFK) route on January 16. Per Airline Route, the carrier is also planning to introduce the new type to Buenos Aires (February 1), Sao Paulo (Guarulhos) (February 10), Santiago (February 13), Mexico City (February 17), London (Heathrow) (July 2) and Madrid (October 25). Some of the routes using the aircraft will be seasonal until all 787s are delivered.

Top Copyright Photo: Steve Bailey/AirlinersGallery.com (all others by Avianca). The pictured Boeing 787-8 Dreamliner N780AV (msn 37502) was delivered on December 17, 2014. Avianca is celebrating 95 years of flying.

Avianca aircraft slide show:

Avianca Holdings is streamlining its operations and selling off certain assets due to its on-going reorganization.

The group announced the plan to retire its former TACA Embraer 190 fleet which never adopted the Avianca brand.

Avianca (El Salvador) (formerly TACA), as planned, has now phased out its last Embraer 190. The pictured N936TA operated the last revenue flight for the type as flight TAI 316 on July 1, 2019 from Panama City to the San Salvador base.

Avianca (El Salvador) operates between El Salvador and the following destinations:

• Belize
• Bogotá
• Cali
• Cancún
• Ciudad de Guatemala
• Ciudad de México
• Ciudad de Panamá
• Guayaquil
• La Habana
• Liberia
• Lima
• Managua
• Medellín
• Quito
• Roatán
• San José de Costa Rica
• San Pedro de Sula

Avianca Holdings S.A., previously announced on June 4, through its subordinates Grupo Taca Holdings Limited and Nicaraguense de Aviacion S.A., it closed the sale of its shares in Turboprop Leasing Company Ltd., parent company of the Costa Rican airline Servicios Aéreos Nacionales S.A (SANSA) and in Nicaraguan airline Aerotaxis La Costeña S.A (La Costeña).  These airlines operate domestic flights in Costa Rica and Nicaragua, respectively.

The buyer is Regional Airlines Holding LLC., domiciled in Delaware, USA. The transaction was closed on May 31, 2019 by perfecting the contract for the purchase and sale of shares entered into on April 22 between the parties.

This transaction occurs within the framework of the Holding’s new corporate strategy aimed at strengthening its international passenger transportation segment, as well as focusing on the loyalty (LifeMiles) and cargo transportation (Avianca Cargo) business units.

It is important to note that with this transaction, thirteen Cessna 208 and two ATR 42 aircraft will no longer be part of Avianca Holdings’ fleet, in line with the company’s fleet simplification strategy.

In Costa Rica, the Holding has its own airline (Avianca Costa Rica S.A.), operating direct flights to the company’s three hubs: (San Salvador, Bogota and Lima); as well as the Guatemala City and Panama City. Likewise, flights to destinations in Canada, Chile, Ecuador, the United States and Mexico are operated with Costa Rican crews.

Top Copyright Photo: TACA International Embraer ERJ 190-100 IGW N936TA (msn 19000215) MIA (Brian McDonough). Image: 908637.

Avianca has made this announcement:

Under its “Avianca 2021” strategy, the new management of Avianca Holdings is rapidly advancing in the execution of a plan to strengthen the company’s competitiveness and accelerate necessary financial adjustments.

One of the fundamental pillars of the plan is operational efficiency. Since November of last year, the company has begun a systematic effort to improve punctuality, achieving measurable improvement. It will continue to make changes in itineraries, routes, schedules and frequencies and, working with the Colombian aeronautical authority, simplify its operation and provide a better service to customers.

Roberto Kriete, Chairman of the Board of Directors stated: “Supported by Kingsland, which since May 24 assumed control of the company, and with the know-how of United, strategic partner of Avianca, we will continue to make decisions that recover and strengthen the confidence of our clients and investors.” He stressed that the Avianca 2021 plan reclaims the essence of the company: “We are, first and foremost, an airline.”

In parallel, the new Chief Financial Officer (CFO) of Avianca Holdings, Adrian Neuhauser, who will lead the financial execution of the “Avianca 2021” plan, has met with various strategic partners of the airline. According to Neuhauser, “the goal of the 2021 strategy for Avianca Holdings is to achieve sustainable and competitive growth, doubling current operating margins while maintaining disciplined capital investments, generating consistent cash flow that would achieve conservative leverage levels by 2021. In the immediate term, the re-profiling of our debts is essential to ensure adequate liquidity. ”

The new administration trusts that with the decisions that have been made and a coherent and professional execution of the plan, Avianca´s strategic, commercial and financial allies will support the company in achieving the required adjustment and re-profiling of its obligations. “Negotiations are being held in a positive context and we have found that both financial institutions and our suppliers are receptive. At this historic juncture for Avianca, it is essential to ensure their confidence in us while we decrease our leverage and improve profitability. We aim to be more competitive while we continue delivering the best service to our customers, ” said Neuhauser.

Avianca Holdings has reached agreement with United Airlines and Kingsland Holdings S.A. regarding the terms of United and Kingsland’s proposed financing to AVH of up to US $250 million, and established the conditions precedent to the transaction.

United and Kingsland have agreed to provide Avianca a four-year loan at an interest rate of 3%; interest will be paid-in-kind until maturity, granting Avianca greater financial flexibility. The loan will convert into shares at Avianca’s option –at an equivalent price per share of US $4.6217, representing a 35% premium over the 90-day weighted average price through October 3, 2019– subject to certain conditions, including AVH’s share price consistently trading above seven dollars; the loan may also be converted into shares voluntarily at the discretion of United Airlines and Kingsland Holdings. The financing will be secured by a pledge of stock in AVH’s major subsidiaries.

Drafting of final documentation is ongoing and is expected to be executed by mid-October. Funding remains subject to certain other conditions, including the successful conclusion of Avianca’s debt reprofiling plan in a manner consistent with the Avianca 2021 plan, as well as the closing of the company’s exchange offer for its US$550 million 2020 bond.

Avianca continues to work on quickly finalizing negotiations with its creditors and fulfilling the conditions necessary to conclude the bond exchange offer, in order to expeditiously close the stakeholder loan.

Once this process is concluded, Avianca expects to offer its preferred shareholders the opportunity to participate in US $125 million financing under similar conditions.

Top Copyright Photo: Avianca (Colombia) Boeing 787-8 Dreamliner N780AV (msn 37502) LAX (Ron Monroe). Image: 947817.

Avianca aircraft slide show:

Avianca Group, as part of its Chapter 11 reorganization, made this announcement about Avianca Peru, formerly TACA Peru:

In parallel to its Chapter 11 filing in the U.S., as previously announced, Avianca is commencing a liquidation of its operations in Peru pursuant to local laws, which will allow Avianca to renew its focus on core markets upon emergence from its court-supervised reorganization.

Avianca Perú is an airline based in Lima, Peru. It operates domestic services and international services. Its main base is Jorge Chávez International Airport (LIM), Lima. The airline operates out of 18 airports. It is part of the Synergy Group and operates its flights with TACA’s codes. Through Synergy Group, it is one of the seven nationally branded airlines (Avianca Ecuador, Avianca Honduras, etc.) in the Avianca Holdings group of Latin American airlines.

In other news, Avianca Group announced first day approvals of its motions in the bankruptcy court:

Avianca Holdings S.A. has announced that all “first day” motions related to the Company’s voluntary reorganization proceedings initiated on May 10, 2020 have been approved on an interim or final basis by the U.S. Bankruptcy Court for the Southern District of New York. Collectively, the orders granted by the Court at the hearing will help ensure that Avianca continues normal business operations throughout the reorganization process.

Among other things, the Court approved motions that will allow Avianca to protect employees and suppliers while also continuing to serve customers. Avianca received authorization to:

• Pay certain employee wages, compensation and benefit obligations owed from before the filing date, as well as to continue paying wages and honoring employee benefit programs in the normal course of business during its Chapter 11 cases;
• Maintain its network of customer programs throughout this process. Customers can continue to arrange travel and fly with Avianca in the same way they always have. Additionally, Avianca customers will continue to accrue miles when they fly with Avianca, and can continue to redeem miles earned through LifeMiles to purchase tickets with Avianca during this process; and,
• Honor various obligations owed to certain of its travel agency partners, vendors and suppliers from before the filing date. The Company will also continue to pay vendors and suppliers, as well as travel agency partners, in the ordinary course for goods and services provided on or after May 10, 2020.

The success of Avianca’s “first day” hearing marks the first significant milestone of the Company’s Chapter 11 case, and will allow it to both issue various critical payments and maintain operational continuity throughout its reorganization. With its requested relief granted, the Company can look forward to productively engaging with key stakeholders and other interested parties. Notably, the next Court hearing is currently scheduled for June 11, 2020, where Avianca hopes to secure approval of all interim orders on a final basis.

Ongoing Government Discussions

As previously announced, Avianca – like many other airlines around the world, including in the United States, the European Union, and Asia as well as in Latin America – is seeking financial support from the governments of the countries where it provides essential services. Avianca continues to be engaged in discussions with the government of Colombia, as well as those of its other key markets, regarding financing structures that would provide critical additional liquidity to support the Company during the Chapter 11 process and play a vital role in ensuring that the Company emerges from its court-supervised reorganization as a highly competitive and successful carrier in the Americas. In the interim, while these discussions are ongoing, the Company intends to utilize its cash on hand, combined with funds generated from its ongoing operations (such as cargo), to support the business during the court-supervised reorganization process.

Top Copyright Photo: Avianca (Peru) Airbus A330-243 N279AV (msn 1279) MIA (Brian McDonough). Image: 925808.

x

Avianca Holdings S.A. has issued a statement regarding the commitment from the Government of Colombia to participate in the Company’s expected debtor-in-possession (“DIP”) financing, following the injunction issued by the Administrative Court of Cundinamarca. Avianca commented as follows:

Avianca reiterates its gratitude to the Republic of Colombia for its continuing support and commitment to participate in the Company’s debtor-in-possession (DIP) financing.  Avianca’s DIP financing, which is supported not only by the government of Colombia but also by the Company’s existing lenders and by more than 90 additional third-party institutional investors, is critical to sustain Avianca’s operations, maintain connectivity throughout Colombia, and help support the country’s economic recovery.

Avianca looks forward to presenting information to the Colombian courts in the coming days, alongside information being presented by the government of Colombia, that will demonstrate that participation by the Republic of Colombia in the Company’s debtor-in-possession financing is a beneficial transaction for the country. The transaction has been structured in a way that provides substantial collateral support as well as attractive economic returns to the Republic that are equal to those of other senior secured private institutional investors, and ahead of certain other key stakeholders and third-party lenders in a US$ 700 million subordinated loan.

We expect to file our DIP motion with the US Bankruptcy Court in the coming week and are confident that the Colombian courts will authorize the Colombian government to move forward with funding in a timely manner.

Avianca Holdings S.A. has  announced that it has secured commitments for debtor-in-possession (“DIP”) financing totaling just over US$2.0 billion and has filed a motion to approve the financing in the U.S. Bankruptcy Court for the Southern District of New York.

The DIP financing – inclusive of rollups of existing debt and purchase loan consideration – is expected to be approximately US$2.0 billion, consisting of a US$1.27 billion Tranche A senior loan and a US$722 million Tranche B subordinated loan. The DIP financing includes approximately US$1.217 billion of new funds consisting of US$ 881 million in Tranche A and US$ 336 million in Tranche B.

On August 28, 2020, as part of syndicating the Tranche A DIP loan, the Company entered into a Restructuring Support Agreement (“RSA”) with an ad hoc group of holders representing a majority of Avianca’s 2023 senior secured notes who will provide US$ 290 million in new funds (inclusive of US$ 63 million of backstop) and roll up US$ 220 million of their existing notes into Tranche A.

US$240 million of the Tranche A financing has been structured as a backstop commitment, to allow for the eventual participation of one or more governments.

The US$722 million Tranche B DIP loan includes US$336 million of new money financing, as well as a rollup of approximately US$386 million of secured convertible debt issued in December 2019 and January 2020 (the “Existing Convertible Debt”). The new money financing was provided by certain of the Existing Convertible Debt lenders, including Kingsland Holdings S.A, as well as third-party investors; certain other Existing Convertible Debt lenders, including United Airlines, participated solely in the Tranche B loan rollup by refinancing their Existing Convertible Debt.

The DIP loans are secured by Avianca’s key assets (including the Company’s ownership stakes in its LifeMiles and cargo subsidiaries, as well as by its key brands and cash accounts). Both tranches are secured by a lien on all available collateral, with Tranche B subordinated in right of repayment to Tranche A. The collateral pool for these DIP financings was recently substantially increased via a series of agreements previously announced by Avianca.

The financing is subject to U.S. Court approval, with a hearing scheduled for October 5, 2020, and other customary conditions.

Avianca aircraft photo gallery:

Ontario International Airport (ONT) officials are celebrating the launch of Avianca Airlines’ service to El Salvador – the first of its kind between the Inland Empire to Central America staring on July 1.

The Bogota, Colombia-based carrier will operate three flights a week from ONT to San Salvador International Airport (SAL) in the capital city of El Salvador. Flights will arrive at ONT at 11:30 p.m. on Tuesday, Thursday and Saturday with return service departing ONT at 1:15 a.m.

*All times local

Top Copyright Photo: Avianca (El Salvador) Airbus A319-132 N522TA (msn 5219) (Star Alliance) LAX (Michael B. Ing). Image: 937568.

Avianca (El Salvador) slide show:

Avianca made this announcement:

Avianca has announced that following its submission of additional documentation that had been requested by the United States Court for the Southern District Court of New York– the Court has confirmed Avianca’s Plan of Reorganization^­*i. The Company expects to successfully complete its court-supervised reorganization and emerge from Chapter 11 before the end of the year as a more efficient and financially stronger airline, well positioned for long-term success.

Upon emergence, the Company will have a solid balance sheet, with significantly reduced debt and over $1 billion in liquidity. Avianca’s restructuring will enable the Company to continue repositioning and simplifying its business, re-establishing as the carrier of choice in Latin America by adopting more competitive pricing for clients, reconfiguring aircraft with best-in-class modern seating, expanding network routes both domestically and internationally, refinancing its aircraft portfolio and obtaining long-term financing commitments. Avianca will keep the airline’s differentiating and competitive assets, which include a robust network, one of the best loyalty programs, VIP Lounges, signature services and one of the most competitive cargo solutions in the region.

Business Plan:

Avianca’s updated business plan impacts all facets of operations – the destinations Avianca will serve, the aircraft Avianca will operate, and the way Avianca will serve customers – to build on its leadership position and drive its future success.

Notably, the business plan projects:

• A financially viable and stable airline;
• Higher network density with a passenger fleet of more than 130 aircraft flying over 200 largely point-to-point routes by year-end 2025, with expanded service across Latin America as demand fully recovers;
• A leaner cost structure providing both better pricing and more direct service, while enabling growth into new markets; and
• Continued growth of the air cargo and LifeMiles loyalty businesses, building on the Company’s already well-established market positions.

Avianca’s Business Vision Milestones:

Over the course of 2021, Avianca has made significant progress on its new business vision in three key areas: strengthening its network, redesigning products and enhancing services. Certain milestones that the Company has already successfully achieved include:

• A stronger network: Announced 23 new point-to-point routes in strategic markets for 2022, including Colombia, El Salvador, Guatemala and Costa Rica. Avianca plans to operate more than 100 new routes in the next three years. 
• Cabin reconfiguration: Incorporated more seats to offer more competitive prices and increase the number of passengers carried. The capacity of each aircraft will be increased by up to 20%.
• Tailor-made service bundles: Provided customers with better flexibility to manage their flights and services so they only pay for what they really need.
• Better self-service: Strengthened online customer service, its chat service “Vianca” and digital channels so that passengers can manage their trip more easily from the mobile application and Avianca’s website.
• A rewarding LifeMiles program: Introduced a new mileage accrual model and more benefits for loyalty program travelers.

Top Copyright Photo: Avianca (Costa Rica) Airbus A320-233 N493TA (msn 2917) LAX (Michael B. Ing). Image: 955533.

Avianca (Costa Rica) aircraft slide show:

Avianca (Costa Rica) aircraft photo gallery:

Avianca announced on December 1, 2021 that it has successfully completed its financial restructuring process and emerged from Chapter 11 as a more efficient and financially stronger airline, with significantly reduced debt and over $1 billion of liquidity.

After advancing through the Chapter 11 process in 18 months, Avianca has revamped its business model to be significantly more efficient, reaffirming its commitment to providing reliable and on-time service, combining a value proposition that includes the best attributes of low-cost airlines, while retaining key differentiators that allow it to be the most convenient travel alternative for millions of passengers in Latin America and the world.

Looking ahead, Avianca will continue to strengthen its value proposition, adjusting its products and services to the needs of its customers:

• Competitive Prices: Affordable prices are more important now than ever. The Company will provide more competitive pricing and allow customers to personalize their fare packages and pay for the services and flexibility they need.
• One of the strongest networks in Latin America: Over the next three years, Avianca expects to nearly double its network, expanding to nearly 200 routes in Latin America and the world. The majority of the new routes will be point-to-point, providing greater convenience to its customers. The network will be served by a fleet of more than 130 aircraft by the end of 2025 with reconfigured, lighter-weight new-generation seats, which will allow Avianca to reduce the carbon footprint of its operations and contribute to airport decongestion while increasing its efficiency.
• More seats and more comfort: Avianca is committed to investing more than US$200 million in the next year renewing its seats, including three new types – Premium, Plus and Economy – of its A320 fleet in order to provide greater comfort, operate more efficiently, and offer more competitive prices.
• Boeing 787 for long-haul flights: The airline will continue to fly the Dreamliner, an exceptional aircraft that given its capabilities, features, efficiency, and comfort is the best solution for the Company and customers.
• Avianca Cargo, a strategic business: The Company’s Cargo business will continue with significant growth potential, maintaining its leadership in Colombia and continuing to expand in other strategic markets, providing more and better solutions to the customers.
• The best loyalty program in the region and VIP lounges: With the LifeMiles frequent flyer program, Avianca customers will be able to continue earning and using miles across the airline’s network and with its coalition partners. Likewise, passengers will continue to enjoy the Company’s VIP Lounges as they have done when flying with Avianca.
• Star Alliance Member: The company will continue to be supported by Star Alliance, the world’s largest airline alliance, which provides its customers with connectivity to 1.300 airports around the world.
• Enhanced Services: Avianca has strengthened its online customer service and digital channels for passengers to manage trips more easily. Over the next 12 months, the company plans to further revamp these channels and its apps to continue to improve and make it easier for passengers to manage their travel. Punctuality has been and will continue to be a key priority; according to data from Cirium, Avianca is one of the leading Latin American airlines in on-time performance for 2021.

Roberto Kriete, Chairman of the Board, stated: “We are very proud of the work that the Avianca team has done that has led the company to emerge from Chapter 11 on schedule as a financially stronger organization. While we are on the right path to recovery, we must remain cautious with the progress of the pandemic that has not yet ended and must stay focused on executing our new business plan. I have all the confidence that with the support of our investors, all those who believed in us and with the current leadership, this company will continue to grow while connecting Latin America.”

As per the approved plan of reorganization, the new shareholders will invest in Avianca Group International Limited, a new holding company, which will be domiciled in the United Kingdom and will consolidate the group’s investments in all of its subsidiaries (including Aerovias del Continente Americano, its Colombian subsidiary, and TACA International, its Central American operation). The prior holding company, Avianca Holdings was domiciled in Panama.

Seabury Securities LLC served as investment banker and financial advisor to Avianca, and Milbank LLP served as legal advisor.

Top Copyright Photo: Avianca (Colombia) Boeing 787-8 Dreamliner N781AV (msn 37503) MUC (Gunter Mayer). Image: 955996.

Avianca aircraft slide show:

Avianca aircraft photo gallery:

Avianca has unveiled a “Disney Encanto” special livery on Airbus A320-214 N939AV (msn 4939).

Avianca and Viva Air jointly issued this statement:

Avianca has issued this statement:

The principal shareholders of Colombia’s Avianca and the controlling shareholder of Brazil’s GOL have signed a landmark agreement to create a leading air transportation group across Latin America under a holding company structure named Abra Group Limited. Subject to customary regulatory approvals and closing conditions, the Abra Group will control Avianca and GOL and bring together their iconic brands under a single holding.

Through recent investments made by Avianca’s and Viva’s shareholders, the Group will also own a non-controlling 100% economic interest in Viva’s operations in Colombia and Peru as well as convertible debt representing a minority interest investment in Chile’s Sky Airline.

Together, Avianca and GOL will anchor a pan-Latin American network of airlines that will have the lowest unit cost in their respective markets, the leading loyalty programs across the region, and other synergistic businesses. Avianca and GOL will continue to maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership.

Abra will provide a platform for the operating airlines to further reduce costs, achieve greater economies of scale, continue to operate a state-of-the-art fleet of aircraft, and expand their routes, services, product offerings, and loyalty programs.

In the aggregate, the airlines under the Abra Group ownership will offer customers the largest network of complementary routes, with minimal overlap, across their markets.

Abra’s financial strength will provide long-term stability and agility to the participating airlines that will allow consistent and sustained investment in innovations and synergies.

Abra Group will be co-controlled by the principal shareholders of Avianca and the majority shareholder of GOL and be led by management with significant airline experience across the region, a long history of entrepreneurship, and a proven track record of growth and successful airline transformations.

• Roberto Kriete, who will serve as the group’s Chairman, grew TACA in the 1980s into the leading Central American airline before merging it with Colombia’s Avianca Airlines in 2009. He also founded the leading Mexican carrier Volaris in 2006.
• Constantino de Oliveira Junior, who will serve as the group’s CEO, pioneered Latin America’s low-cost carrier revolution when he founded GOL Airlines in 2001. Together with the acquisition of VRG in 2007 and Webjet in 2011, he led the company’s growth to a market-leading position.
• Adrian Neuhauser, current President and CEO of Avianca, and Richard Lark, current CFO of GOL, will serve as the group’s Co-Presidents, in addition to maintaining their current roles at the airlines; further details on the Abra management team will be provided at closing.

Abra Group’s management will focus on achieving synergies to ensure the lowest cost structure in each carrier’s relevant market; expanding routes, services, product offerings, and loyalty programs; and developing innovative new products and services that will meet the evolving needs of passengers and air cargo customers in the highly competitive Latin American air transportation market and beyond.

Abra will also ensure that its operating airlines are ESG market leaders by providing enhanced governance as well as the financial strength to continue to invest in a lower carbon footprint fleet, which will significantly accelerate the airline industry’s path towards meeting carbon neutrality targets.

Roberto Kriete, Abra Group’s Chairman, said: “Our vision is to create an airline group that tackles 21^st century issues and improves air travel for our customers, employees, and partners as well as the communities in which we operate. Our customers will benefit from access to even better fares, more destinations, more frequent flights and seamless connections, and the ability to earn and use points across the brands’ loyalty programs. They will also be able to enjoy enhanced travel benefits and access to superior products and services.”

Constantino de Oliveira Junior, Abra Group’s CEO, said: “This agreement places Abra’s airlines in a position to lead air travel within the region – serving a population of over one billion and GDP of nearly three trillion US dollars – providing significant opportunities for capacity and revenue growth. Our unique enterprise structure will allow each airline to drive results by maintaining their independent brands, talent, teams, and culture and will provide employees more opportunities for personal and professional growth at every stage of their careers.”

In related news, the majority shareholders of Viva and Avianca jointly announced that Viva will become part of the same holding company as Avianca Group International Limited (Avianca Group) and that Declan Ryan, founding partner of Viva, will join the board of directors of Avianca Group, bringing his decades of aviation experience.

Any transfer of control rights over Viva’s operations in Colombia and Peru by the new holding company will be subject to requesting and obtaining all necessary regulatory authorizations.

Until the receipt of necessary authorizations, control and administration of Viva in Colombia and Peru will be independent of Avianca; Viva will continue to compete with the other airlines within the Avianca Group. Until the authorizations are obtained, customers, suppliers, employees, and relationships for the companies will remain the same; with separate internal and external operations, as well as independent sales channels and customer service teams.

Avianca aircraft photo gallery: