Category Archives: Avianca (Brazil)

Azul signs non-binding agreement to acquire select assets of Avianca Brasil

Azul S.A, the largest airline in Brazil by number of departures and destinations, has announced today that it has signed a non-binding agreement with Avianca Brasil to acquire certain assets of Avianca Brasil for the indicative purchase price of up to US$105 million.

As provided by the Brazilian Bankruptcy and Judicial Reorganization Law, the assets will be transferred to a new entity free and clear of all debts and liabilities (“NewCo”). The proposed NewCo solely includes certain assets selected by Azul including Avianca Brasil’s operating certificate, 70 pair of slots and approximately 30 Airbus A320 aircraft.

The offer is non-binding and remains subject to a number of conditions precedent, including due diligence, regulatory and creditors approvals, and the conclusion of Avianca Brazil’s judicial reorganization. Azul estimates that the process could take up to three months to be concluded.

Azul will keep the market informed of any relevant developments.

First Airbus A320neo, delivered on October 11, 2016

Above Copyright Photo (all others by the airlines): Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-251N WL PR-OBD (msn 7175) GRU (Rodrigo Cozzato). Image: 938772.

Avianca Brasil aircraft slide show:

If concluded, is this the end of Avianca Brasil?

Route Map:

Advertisements

Avianca Brasil files for bankruptcy protection

Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A330-243 PR-OCX (msn 1657) JFK (Fred Freketic). Image: 944740.

Avianca Brasil on December 11, 2018 announced it was filing for bankruptcy protection.

The airline also stated its passengers flights will continue. The debts from its creditors amounts to almost 493 million reais ($127 million).

The airline issued this statement (translated from Portuguese):

We are here to clarify the news circulated in the press.

Due to the resistance of our aircraft lessors to an amicable agreement, we had to file a request for judicial recovery to protect you, our customers and passengers. As the first court decision, we have had the release of our fleet to comply with all scheduled flights at the airports where we operate.

That is, our operations WILL NOT BE AFFECTED.

You, our passengers, can have absolute peace of mind in making your reservations and purchasing your tickets, since all sales and flights are and will be kept.

We will continue here, serving all customers, flying to all destinations with the quality and excellence for which we are known and recognized.

Let’s continue with our mission: make you fall in love. Just come!

Avianca Brasil

More from Reuters:

Avianca Brasil, filed for bankruptcy protection on Monday, saying its operations had been threatened by potential repossession of aircraft, which could prevent the carrier from continuing to operate.

The unlisted airline said in its bankruptcy filing that leasing companies seeking to take back some 30 percent of its all-Airbus fleet threatened its ability to fly some 77,000 passengers in December.

Avianca said in a statement that the bankruptcy filing resulted from a failure to reach a “friendly agreement.” It also said its flights would not be affected.

The aircraft are still under Avianca Brasil’s control for now and it remains unclear what their fate will be as the carrier is asking a Brazilian court to allow it to keep the planes for now.

The airline said in the filing it largely blamed high fuel prices and a strong dollar for its troubles.

Avianca Brasil is owned by holding company Synergy Group, which also controls the better-known Avianca Holdings SA, a publicly listed airline based in Colombia. Still, the fate of one company is linked to the other.

Top Copyright Photo (all others by the airline): Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A330-243 PR-OCX (msn 1657) JFK (Fred Freketic). Image: 944740.

Avianca Brasil aircraft slide show:

Route Map:

United Airlines expands partnership with Copa Airlines and Avianca

United Airlines Boeing 777-224 ER N78017 (msn 31679) (Star Alliance) LHR (Keith Burton). Image: 944609.

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 StatesLatin 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):

Avianca Brazil and Alitalia announce a code-share agreement

First Stretched Triple Seven, delivered on September 1, 2017

Avianca Brazil and Alitalia have announce the implementation of a code-share agreement.

At first, with its “AZ” code, the Italian airline will sell air tickets to its partner destinations in Brazil, significantly increasing its penetration in the market.

The shared network will include 21 national and international destinations in connection with Alitalia services to/from São Paulo and Rio de Janeiro: Brasilia, Cuiabá, Campo Grande, Belem, Belo Horizonte (Confins), Curitiba, Florianópolis, Fortaleza, Foz do Iguaçu, Goiânia, João Pessoa, Maceió, Natal, Navegantes, Porto Alegre, Recife, Rio de Janeiro, Salvador, São Paulo, Vitória, and Santiago, Chile, as an international destination. Sales are already available for travels from  July 3.

The agreement will expand the offer and connectivity for travelers arriving in the country with the Italian airline. Among other facilities, Alitalia customers will be able to fly to the desired destination in Brazil with a unique ticket, checking-in once at the departure airport for the entire journey, and collecting the checked baggage at the end of their trip in the arrival airport.

Currently, Avianca Brazil serves 25 domestic and four destinations abroad, with 282 daily departures, using 55 Airbus aircraft – the youngest fleet in the Americas. Alitalia, on the other hand, is the leading Italian airline and offers 18 weekly frequencies between Italy and Brazil, 11 on the Rome-São Paulo route and 7 weekly frequencies on the Rome-Rio de Janeiro route.

 

Top Copyright Photo (all others by the two airlines): Alitalia (3rd) (Societa Aerea Italiana) Boeing 777-3Q8 ER EI-WLA (msn 35783) JFK (Fred Freketic). Image: 941779.

Alitalia aircraft slide show:

Avianca Brazil aircraft slide show:

Bottom Copyright Photo: Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A330-243 PR-OCK (msn 1508) MIA (Bruce Drum). Image: 104595.

Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A330-243 PR-OCK (msn 1508) MIA (Bruce Drum). Image: 104595.

Avianca Brasil adds its first passenger Airbus A330-200, to serve Miami

Avianca Brasil, one of Brazil’s largest airlines, announced today it has taken delivery of its first passenger A330-200 aircraft. The carrier will receive two additional planes of the same family in the coming weeks, which will launch its long-haul operations from Sao Paulo international airport to Miami (USA) and Santiago (Chile).

The new Avianca Brasil aircraft are configured in two classes of service: 32 seats in Business and 206 in Economy.

The company official stated Business class customers will be offered a superior experience. The 1-2-1 seating arrangement will ensure greater privacy and comfort; seats recline to a fully-flat position. These premium travelers will have an advanced on-demand entertainment system, with a wide variety of movies, TV series and games, viewable on 15-inch touchscreens. The seats will also feature control panels, auxiliary lighting, support tables, USB connection, power outlets and adjustable head rests.

In Economy, comfortably configured in a 2-4-2 arrangement, passengers will enjoy an individual entertainment system equipped with 9-inch touchscreen monitors, plus remote controls, power outlets, USB ports, and adjustable head and foot rests.

The new jets will also feature the latest LED ambient lighting technology, designed to provide an enhanced travel experience. Pedreira informed that in the future the carrier will equip its A330 aircraft with wi-fi connection – Avianca Brasil was the first South American carrier to provide internet aboard, in September, 2016.

Miami is set to be the first destination to be launched. Ticket sales began yesterday for travels from June 23. Flight 8510 will leave Sao Paulo (GRU) at 11:55 PM, landing in the United States (MIA) at 7:25 AM. Then, Flight 8511 will depart Miami at 7:30 PM, arriving in Brazil at 5:00 AM(local times).

In July, at date yet to be announced, the company will launch the Sao Paulo – Santiago route with the new A330s.

The pictured Airbus A330-243 PR-OCX (msn 1657) was delivered on March 29, 2017.

All photos by Avianca Brasil.

Video:

Avianca Brasil joins the Star Alliance

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.

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:

At a special ceremony held at Guarulhos International Airport today (July 22), the Star Alliance member carriers welcomed their newest member, Avianca Brasil.

 

Avianca Brasil is the fastest growing airline in the country. From 2010 to 2014 it increased its market share from 2.6% to 8.4%. Until May of 2015 the airline continued this trend, reaching a cumulative market share of 9%.

Further growth is predicted as Avianca Brasil and the other Star Alliance carriers serving the country will connect more passengers through the main Brazilian hubs in São Paulo – Guarulhos, Rio de Janeiro – Galeão and Brasilia.

In total 13 member carriers (Air Canada, Air China, Avianca, Avianca Brasil, Copa Airlines, Ethiopian Airlines, Lufthansa, Singapore Airlines, South African Airways, SWISS, TAP, Turkish Airlines and United) now serve Brazil, which further strengthens Star Alliance’s position as the alliance with the most airlines in this market. Avianca Brasil adds 15 new destinations in Brazil to the existing 12 which the Star Alliance member carriers already served, bringing the total to 27.

Top Photo: Avianca Brasil.

Avianca Brasil aircraft slide show: AG Airline Slide Show

Videos:

Star Alliance votes for Avianca Brazil to join the alliance on July 22

The Star Alliance has issued this statement from Warsaw, Poland touting the accomplishments of the alliance. In the report, Avianca Brazil (OceanAir Linhas Aereas dba) (Sao Paulo) has been granted membership and will join the group on July 22:

Star Alliance logo

Star Alliance member carrier LOT Polish Airlines hosted the mid-year Chief Executive Board (CEB) Meeting during which the member carrier CEOs endorsed enhancements to further improve the network travel experience offered to customers and gave the go-ahead for the inclusion of a new member in Brazil.

 

As hosting carrier, LOT outlined its new strategy – a new LOT in a new Europe – under which it plans to double in size over the next five years. In addition to three new connections to Asia – Tokyo, Seoul and Bangkok – it plans more than a dozen new European routes. Announcing the most dynamic growth in the company’s history, LOT said it was competing for leadership in the region and aimed to become the largest network carrier in New Europe.

In their joint discussions, the CEOs reaffirmed the objectives set out by the Alliance’s founding fathers more than 18 years ago, agreeing to continue to build on its key strengths – a global network, a high standard of customer service and making use of modern technology to drive business strategies.

Star Alliance’s aim at launch in May 1997 was to become the leading global airline alliance for the high value international traveller and contribute to the long-term profitability of its member airlines beyond their individual capabilities.

“As a mature Alliance with a comprehensive network and good, close relationships between our member airlines we are excellently placed to offer continuous enhancements in various ways that together improve the Alliance travel experience,” said Star Alliance CEO Mark Schwab.

Avianca Brasil logo

Avianca in Brazil will be added to the network as of July 22nd this year, allowing Star Alliance once again to offer its customers domestic flights in Latin America’s largest and most important market.

“We are delighted that we can include Avianca in Brazil as of next month, which, together with various new hub-to-hub services announced by individual members, signifies that we will boost network connectivity this year,” Schwab added.

The alliance continued in their meeting notes:

2015 has already seen a steady stream of route additions and more new routes will be introduced by the end of the year. These include for example further increasing choice at the Alliance’s Houston hub, with new long-haul flights by Air New Zealand, ANA and EVA Air from Auckland, Tokyo and Taipei. Air China has launched a new flight between Beijing and Montreal while Air Canada will start flying from Toronto to Delhi in December. A new Lufthansa flight from Frankfurt to Panama will establish an important link between a major hub in Europa and Latin America from late November.

Complementing the network expansions, member carriers are deepening their bilateral cooperation by signing code-share agreements. Recent examples include Air India and Air New Zealand, Air India and Avianca, Copa and TAP and EVA Air and Turkish Airlines.

In parallel to this organic network growth, the Alliance continues to monitor market developments and will seize opportunities for membership expansion if and when they arise.
With customer service improvement at the very heart of its activities, the member airlines are continuously looking for joint initiatives that will deliver a better experience – in many cases by introducing new behind the scenes technology to improve transactions between the carriers.
The most recent example of how such background changes can bring visible change for customers is demonstrated by Star Alliance’s award- winning home in London Heathrow Terminal 2, now one year old. The Queen’s Terminal, formally opened on June 23rd, 2014 by H.M. Queen Elizabeth II, uses new technology and processes that allow airlines to work together in its check-in hall, providing a highly automated and efficient service. Customer feedback on the new terminal has been extremely positive.

Dialogue with airports is essential in realising ground service improvements. “We would ask airports around the world to engage with us at a very early stage, as they redevelop terminals or build completely new infrastructures. As the experience at Heathrow shows, this can bring advantages for all,” Schwab said.

Projects are already under way at Sao Paulo – Guarulhos Airport as well as at Tokyo’s Narita Airport. In both cases the check-in halls face space constraints which cannot be resolved by expanding the current infrastructure.

Another service which is currently being rolled out across the network is Gold Track Security – a dedicated security lane for First and Business Class passengers as well as Star Alliance Gold Card holders. This Alliance product is currently available at over 25 major airports and will progressively expanded to the majority of Star Alliance hubs during the course of the year.
The CEOs also reviewed the successful implementation of several new IT systems. These use latest technologies to provide a more reliable and faster service, with better reporting systems in place to diagnose any errors and allow them to be quickly fixed.

An IT hub infrastructure forms the backbone for the majority of the systems required to deliver the Alliance customer promise. This has gradually being extended to handle different forms of business logic and further similar projects will follow. Examples to date include through check-in: which allows passengers to receive their boarding passes for their entire trip from the first point of check-in. Last year saw the introduction of two systems in the field of loyalty programmes.

The one allows faster and better exchange of the frequent flyer data, with the aim of all but eliminating the need to manually claim miles after a flight. The other system ensures the faster communication of status changes across all airlines in the Alliance, allowing customers to make use of their Gold benefits even before a new card is issued.

Schwab said: “Connecting the data networks is just as important as offering ideal flight options as part of our Airline’s schedule. Having our IT Hub infrastructure in place puts us into a unique position to provide the necessary IT technological support required for speedy implementations of new Star Alliance customer benefits.”

In closing, the CEOs reiterated that while adding new members to the Alliance no longer is of the same importance as some years ago, the Alliance business model continues to offer many opportunities for creating additional value for their individual companies. As a consequence, Alliance membership remains an important and integral part of individual member’s business plans, with each airline being able to decide how much value they wish to extract from their Alliance membership.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-214 WL PR-ONZ (msn 6110) with Sharklets arrives ath the Sao Paulo (Guarulhos) base.

Avianca Brazil aircraft slide show: AG Airline Slide Show

AG Bottom Ad Bar