Tag Archives: Avianca Colombia

Avianca Holdings announces fleet plan optimization

Avianca Holdings has made this announcement regarding its future fleet plans:

As part of the implementation of the “Avianca 2021 Plan”, Avianca management has reached the following agreements to tailor its aircraft commitments to its future requirements:

  • In cooperation with Airbus, the Company has reduced its firm commitments to 88 A320neo aircraft (from 108)
    • Previously scheduled firm A320neo family deliveries in 2020 through 2024 have been deferred or cancelled
    • The 88 remaining commitments are now scheduled for delivery in 2025 through 2028 (20 per year) with the balance in 2029 (8)
    • These agreements provide comprehensive financial benefits, with significant Capex reduction in the period through the end of 2024
  • Separately, Avianca has agreed to enter into 12-year operating leases for up to 12 A320neo aircraft with BOC Aviation
    • Deliveries to occur after 2023, consistent with the Avianca 2021 plan
  • Finally, Avianca reached a mutually beneficial agreement with Boeing with regards to the outstanding 787-9 deliveries

CFO Adrian Neuhauser said “The completion of these three major aircraft transactions, coupled with the recently completed financial reprofiling and securing of $375 million of new long-term capital financing, places Avianca in a solid position as it moves forward with the Avianca 2021 Plan.”

Avianca aircraft photo gallery:

Avianca Holdings completes its financial reprofiling and secures USD $375 million in new financing

Avianca has made this announcement:

Avianca Holdings S.A. has successfully renegotiated substantially all of its debt and lease obligations as well as reached agreements with its key suppliers. As a result, the airline was able to complete the funding of USD $250 million in mandatorily convertible loans by United Airlines, Inc. and an affiliate of Kingsland Holdings Limited. In addition, Avianca announced that it has secured an incremental USD $125 million of committed financing.

Completion of the Balance Sheet Reprofiling Program
Avianca successfully reached broad agreement with its creditors last week, allowing it to comply with key conditions precedent for funding of the Convertible Loans by United and Kingsland. In turn, the funding of the Convertible Loans allowed Avianca’s agreements with its creditors to go effective, reprofiling substantially all of its loans and aircraft lease obligations. In addition, funding of the Convertible Loans triggers the automatic exchange of approximately USD $484 millionaggregate principal amount of Avianca’s current May 2020 bonds (the “Secured May 2020 Bonds”) for secured bonds due May 2023 (the “Secured May 2023 Bonds”), under the terms of a previously announced, successfully executed exchange offer for Avianca’s original May 2020 Bonds (the “Unsecured May 2020 Bonds”).

Avianca’s finance team, led by its CFO, Adrian Neuhauser, successfully negotiated with more than 125 creditors and suppliers over the course of the financial reprofiling process launched in late June 2019.  In addition to securing extensions of Avianca’s bank lines and letters of credit and ensuring the exchange of over 88.1% of the Unsecured May 2020 Bonds for Secured May 2023bonds, the reprofiling program secured more than USD $250 million of additional cash relief from lessors, aircraft lenders and certain other corporate lenders, substantially strengthening the Company’s liquidity position.

Funding of USD $250 million of Financing
Avianca today received the previously-announced USD $250 million of committed financing from United and Kingsland. This financing consists of USD $250 million of Convertible Loans that mature in four years and with a 3% payment-in-kind (PIK) annual interest rate.  United funded USD $150 million and Kingsland funded USD $100 million. United and Kingsland’s Convertible Loans are convertible into the Company’s equity (common shares or preferred shares at the lenders’ option).

The Convertible Loans are subject to mandatory conversion any time after the first anniversary of the loan at the election of Avianca, subject to Avianca meeting certain conditions precedent, including, but not limited to: (i) a trailing six-month average daily ending cash balance (subject to certain adjustments) of at least USD $700 million and (ii) the AVH ADS trading price of at least USD $7.00 for 90 of the prior 120 trading days.

Additional USD $125 million of Financing Commitments 
Avianca announced today that, in addition to funding the Convertible Loans, it has secured USD $125 million financing commitments, in all cases subject to the satisfaction of certain closing conditions:

  • Avianca secured today USD $50 million in commitments –from a group of Latin American investors– to invest in convertible loans on substantially the same economic terms as the United/Kingsland Convertible Loans. Such loans shall convert into AVH preferred shares or ADRs.
  • Avianca also secured USD $75 million in commitments for senior secured convertible loans and bonds that are intended to provide liquidity to Avianca as a bridge to completion of a planned convertible bond offering to preferred shareholders of at least USD $125 million (see details below). These loans and bonds may be converted into AVH preferred shares or ADRs. Citadel will provide USD $50 million of such commitments.

Future Offering to AVH Preferred Shareholders
As previously disclosed, Avianca Holdings expects to offer its preferred shareholders the opportunity to participate in a minimum of USD $125 million of to-be-offered convertible bonds (the “Incremental Bonds”) during the first quarter 2020 under similar conditions to those established for the Convertible Loans, subject to adjustment for market conditions at the time such an offering is launched.  Details and timing of such offering will be made available to AVH preferred shareholders, subject to applicable regulatory review and approvals.

Key Stakeholder Support
Anko van der Werff, Avianca’s CEO, commented: “Today’s announcement coincides with Avianca’s 100-year anniversary and marks an important turning point for our Company as we achieve a critical key milestone of the Avianca 2021 Plan.  The trust placed in us by our creditors and business partners has enabled us to further execute on that Plan which will strengthen our financial and competitive position.  I would like to share my sincere appreciation to all of Avianca’s employees for their hard work and dedication, as well as to United and Kingsland for their support throughout this process.

We are incredibly excited about the future, and we remain focused on strengthening Avianca’s operating margins by controlling expenses, while exceeding our customers’ service expectations.”

Mr. Neuhauser added: “We are grateful for the support of our financial and commercial partners and the confidence they demonstrated by embracing our Company’s reprofiling program.  That support has enabled us to reach agreements with all key stakeholders that benefit all parties.

In addition, we are incredibly excited by the fact that, as a result of the successful reprofiling –and of Kingsland and United’s agreement to fund the Convertible Loans– we were able to, in a very short time period, raise incremental commitments for USD $125 million, underscoring the strength of our plan and further bolstering our liquidity.”

John Gebo, Senior Vice President, Alliances for United Airlines, Inc. said: “United Airlines, along with Kingsland, is very pleased to provide this permanent capital financing that enables Avianca to complete a highly successful reprofiling of its capital structure, the exchange of its 2020 bonds, and the securing of commitments for additional financing which, taken together, underpin and support the Avianca 2021 Plan.  That Plan calls for a comprehensive transformation of Avianca’s operational and profit performance led by Anko and Adrian.  We have every confidence they will deliver on the promising outcomes of that Plan, and we wish them and the whole Avianca family every success on that journey.”

Roberto Kriete, President of Kingsland Holdings, stated: “The fact that Avianca’s new management led by Anko and Adrian were able to successfully carry out the reprofiling speaks very highly of their sense of urgency and their execution abilities.  It marks a before and after in Avianca’s 2021 Plan.  Now with Avianca in a more stable financial position, the airline will be able to focus on the traveler and continue to accelerate its evolution into Latin America’s most beloved and profitable airline.”

Avianca aircraft photo gallery:

Avianca Holdings, United Airlines And Kingsland Holdings agree to terms for loan to be provided to Avianca

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

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 Airlines enters its 100th year of uninterrupted operation, will expand in Europe

Avianca (Colombia) Boeing 787-8 Dreamliner N780AV (msn 37502) LHR (SPA). Image: 940718,

Avianca has made this announcement:

In 2019 Avianca Airlines, the only airline which connects directly London with Bogota, will celebrate its 100-year anniversary. It ratifies its position as the oldest airline in the Americas and the oldest in the world with uninterrupted operations.

In order to lay the foundations for the next century, Avianca wants to increase its presence in Europe and continue to offer an exceptional experience to its customers supported by the best technology available. “We are evaluating the possibility of adding a second frequency to London in the near future,” says Hernan Rincon, CEO and Executive President of Avianca Airlines. “Regarding new destinations, Zurich looks attractive as the next destination in Europe due to its location at the center of Europe. Moreover, the airline is also considering Rome and Paris,” added.

Avianca Airlines maintains a strong presence in Europe through different actions:

New Boeing 787: On October 2018, Avianca received its thirteenth Boeing 787, which it uses exclusively for flights to Europe. Its fleet is one of the newest in The Americas – seven years old on average- and all its flights to this continent are operated on Boeing 787, one of the most modern aircraft in the world. This aircraft can accommodate 250 passengers, 28 in business class and 222 in economy class. Its revolutionary design, together with cutting edge technology, reduces the effects of fatigue and jet lag. In addition, it has an innovative in-flight entertainment system, which has been recognized as the best in Latin America. All together contributing to an exceptional experience.

Route network: From Bogota, Avianca’s main hub, European passengers have access to more than 100 destinations within the Americas such as: Cusco in Peru, Galapagos in Ecuador, San Jose in Costa Rica, Medellinand Cartagena in Colombia, among others. On November 17th, the airline inaugurated the route MunichBogota. The carrier is the first Latin American airline to operate at this airport.

Avianca Airlines transported more than 1 million passengers between Europe and Colombia in 2018.

Top Copyright Photo (all others by the airline): Avianca (Colombia) Boeing 787-8 Dreamliner N780AV (msn 37502) LHR (SPA). Image: 940718,

Avianca aircraft slide show:

Below Copyright Photo: Avianca Colombia Boeing 747-124 HK-2000 (msn 19734) MIA (Bruce Drum). Image: 102771.

AV on the tail - Best Seller

Below Copyright Photo: Avianca Colombia Boeing 720-059B HK-726 (msn 18831) MEX (Jacques Guillem Collection). Image: 940592.

Named "Narino", delivered on April 8, 1965 - Best Seller

Route Map (in Spanish):

Avianca to fly from Bogota to Chicago

Avianca (Colombia) Airbus A319-132 WL N690AV (msn 5944) FLL (Bruce Drum). Image: 104656.

Avianca (Colombia) on November 17, 2018 will launch the Bogota – Chicago (O’ Hare) route. According to Airline Route, the new route will operate four days a week with Airbus A319s.

Copyright Photo: Avianca (Colombia) Airbus A319-132 WL N690AV (msn 5944) FLL (Bruce Drum). Image: 104656.

Avianca aircraft slide show:

Avianca is coming to Munich

Avianca (Colombia) Boeing 787-8 Dreamliner N786AV (msn 37508) LHR (SPA). Image: 935193.

Avianca (Colombia) is coming to Munich. The carrier will add a new route linking Bogota with Munich fives days a week starting on November 16. The new route will be operated with Boeing 787-8 Dreamliners according to Airline Route.

Copyright Photo: Avianca (Colombia) Boeing 787-8 Dreamliner N786AV (msn 37508) LHR (SPA). Image: 935193.

Avianca aircraft slide show: