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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 2-Avianca Brasil to cut fleet, avoid plane seizures for now -lawyer

Mon 14th January, 2019 7:59pm
(Adds Avianca Brasil statement)
    By Marcelo Rochabrun
    SAO PAULO, Jan 14 (Reuters) - Brazilian carrier Avianca
Brasil will trim its fleet and return some leased planes to
owners trying to repossess them, a lawyer for the airline said
on Monday following a closed hearing in  bankruptcy court.
    The legal dispute, which arose after Avianca Brasil fell
behind on lease payments for some of its planes, prompted
lessors to sue to repossess their assets and threatens to gut
the airline's fleet.
    In a statement, Avianca Brasil confirmed earlier comments by
its lawyer, who said the lessors had agreed to grant the airline
15 more days to fly the planes while negotiating delinquent
payments.      
    "The company reinforces that it continues operating
normally, with its landings and departures maintained according
to previously established schedules," the airline said.
    Without a deal, the airline would have faced the immediate
seizure of 20 percent of its fleet, which is owned by lessor
Aircastle Ltd  AYR.N , and could have lost more planes in the
future. The deal, which includes several airplane lessors, came
together at the last minute. 
    As of Friday the airline had not made any concrete proposals
to keep the planes, a source with knowledge of the matter told
Reuters.  urn:newsml:reuters.com:*:nL1N1ZB0Y3
    Last week Avianca Brasil had a fleet of 46 planes, according
to data from Brazilian aviation regulator ANAC. It is unclear
how many planes it will voluntarily return as part of a fleet
reduction plan. 
    Representatives for the airplane lessors declined to
comment.
    The airline filed for bankruptcy protection last month.
Avianca Brasil is separate from the better-known Avianca
Holdings SA  AVT_p.CN , which is based in Colombia. But they
share the same owner, a family company owned in part by
Bolivian-born airline entrepreneur German Efromovich.

 (Reporting by Marcelo Rochabrun; editing by Jeffrey Benkoe and
Grant McCool)
 ((Gabriel.Stargardter@thomsonreuters.com; +55-21-99-811-6099;
Reuters Messaging:
gabriel.stargardter.thomsonreuters.com@reuters.net))
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