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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.53bn
Position in Universe th / 6858

UPDATE 1-Avianca aims to delay plane deliveries, adopt conservative strategy

Wed 30th March, 2016 5:29pm
(New throughout, adds details and comments) 
    By Antonio De la Jara and Felipe Iturrieta 
    SANTIAGO, March 30 (Reuters) - Avianca Holdings  AVT_p.CN , 
one of Latin America's largest airlines will hold off on 
receiving new planes as it looks to weather the region's 
economic downturn with a conservative strategy, its president 
said in an interview. 
    By delaying the new plane shipments, Avianca will ease its 
need for capital, German Efromovich, speaking at the FIDAE 
regional airshow in Chile's capital, told Reuters late Tuesday. 
    Avianca will also look to cut routes that are not 
"strategically important," and will not look to significantly 
increase capacity this year. 
    "The initial plan was to renew the entire fleet for 2024, 
starting in 2017," Efromovich said. 
    "What we're looking at now is shrinking this process to the 
maximum extent possible and stretching its start out to 
2019-2020." 
    Avianca will wait until April to determine the extent to 
which the company will delay shipments for 130 planes already 
under order. He said that the company's arrangement with plane 
manufacturer Airbus  AIR.PA  allows for some flexibility in this 
regard, within a "given deadline". 
    On Tuesday, Airbus projected that the number of airliners in 
operation in Latin America will more than double over the next 
two decades, with 2,540 new planes needed by 2034, worth some 
$330 billion. urn:newsml:reuters.com:*:nL2N1711NU 
    Efromovich said Avianca Brasil has maintained profitability 
despite the nation's moribund economy thanks to a conservative 
strategy, and other Latin American markets have compensated for 
sluggish growth there. 
    But, he added, the short-term opportunities to increase 
capacity in Brazil were significantly diminished. 
    "I can't say that Brazil is better, it's worse," he said. 
    "We were growing at 30 to 40 percent in previous years, and 
now we're going to grow capacity this year between 5 and 6 
percent through plane renewal." 
 
 (Reporting by Antonio de la Jara and Felipe Iturrieta; Writing 
by Gram Slattery; Editing by Chizu Nomiyama, Anthony Esposito 
and David Gregorio) 
 ((gram.slattery@thomsonreuters.com;)(+562-2370-4229;)) 
 
Keywords: CHILE AIRSHOW/AVIANCA HOLDING
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