Category Archives: Avianca (Brazil)

Avianca Brasil to exit Star Alliance

Ocean Air Linhas Aéreas S/A, headquartered in São Paulo and formerly doing business as Avianca Brasil, will formally leave Star Alliance with effect from September 1, 2019. Star Alliance maintains a competitive network in the region.

Ocean Air’s withdrawal follows several months of bankruptcy protection and the withdrawal of its Air Operator Certificate (AOC) by Brazilian regulator ANAC. The Star Alliance network maintains a significant and long-time presence in the Brazilian market continuously since its founding in 1997. As of September 1, 2019, the Alliance will number 27 member airlines.

 

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Avianca Brazil is forced to suspend operations after its AOC is revoked

Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A330-243F PR-ONV (msn 1506) MIA (Jay Selman). Image: 403956.

ANAC, the civil aviation authority of Brazil, on Friday (May 24) suspended the Air Operator Certificate (AOC) of Avianca Brazil forcing the ailing carrier to suspend all operations.

The carrier stated it would continue to work on restructuring and looks forward to restarting operations.

Top Copyright Photo: Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A330-243F PR-ONV (msn 1506) MIA (Jay Selman). Image: 403956.

Avianca (Brazil) aircraft slide show:

 

Aircastle announces repossession of leased aircraft from Avianca Brazil

Aircastle Limited has announced that it has repossessed its ten Airbus A320-200 aircraft that were previously on lease to Avianca Brazil.   The ten A320-200 aircraft are now transitioning to committed long-term leases with a major international carrier.

Mike Inglese, Aircastle’s Chief Executive Officer, stated, “We are pleased to have reached an important milestone in the transition of these aircraft to a new global operator.  In line with our expectations that these highly in-demand modern aircraft would be quickly placed, we now anticipate that these aircraft will return to service on their new leases during the current quarter.”

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:

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.