Tag Archives: Avianca

Avianca advances the execution of its 2021 strategy

Avianca has made this announcement:

Under its “Avianca 2021” strategy, the new management of Avianca Holdings is rapidly advancing in the execution of a plan to strengthen the company’s competitiveness and accelerate necessary financial adjustments.

One of the fundamental pillars of the plan is operational efficiency. Since November of last year, the company has begun a systematic effort to improve punctuality, achieving measurable improvement. It will continue to make changes in itineraries, routes, schedules and frequencies and, working with the Colombian aeronautical authority, simplify its operation and provide a better service to customers.

Roberto Kriete, Chairman of the Board of Directors stated: “Supported by Kingsland, which since May 24 assumed control of the company, and with the know-how of United, strategic partner of Avianca, we will continue to make decisions that recover and strengthen the confidence of our clients and investors.” He stressed that the Avianca 2021 plan reclaims the essence of the company: “We are, first and foremost, an airline.”

In parallel, the new Chief Financial Officer (CFO) of Avianca Holdings, Adrian Neuhauser, who will lead the financial execution of the “Avianca 2021” plan, has met with various strategic partners of the airline. According to Neuhauser, “the goal of the 2021 strategy for Avianca Holdings is to achieve sustainable and competitive growth, doubling current operating margins while maintaining disciplined capital investments, generating consistent cash flow that would achieve conservative leverage levels by 2021. In the immediate term, the re-profiling of our debts is essential to ensure adequate liquidity. ”

The new administration trusts that with the decisions that have been made and a coherent and professional execution of the plan, Avianca´s strategic, commercial and financial allies will support the company in achieving the required adjustment and re-profiling of its obligations. “Negotiations are being held in a positive context and we have found that both financial institutions and our suppliers are receptive. At this historic juncture for Avianca, it is essential to ensure their confidence in us while we decrease our leverage and improve profitability. We aim to be more competitive while we continue delivering the best service to our customers, ” said Neuhauser.

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Avianca El Salvador retires its last Embraer 190

The last Embraer 190 revenue flight operated with N936TA on July 1, 2019 (flight TAI 316 Panama City - San Salvador)

Avianca Holdings is streamlining its operations and selling off certain assets due to its on-going reorganization.

The group announced the plan to retire its former TACA Embraer 190 fleet which never adopted the Avianca brand.

Avianca (El Salvador) (formerly TACA), as planned, has now phased out its last Embraer 190. The pictured N936TA operated the last revenue flight for the type as flight TAI 316 on July 1, 2019 from Panama City to the San Salvador base.

Avianca (El Salvador) operates between El Salvador and the following destinations:

  • Belize
  • Bogotá
  • Cali
  • Cancún
  • Ciudad de Guatemala
  • Ciudad de México
  • Ciudad de Panamá
  • Guayaquil
  • La Habana
  • Liberia
  • Lima
  • Managua
  • Medellín
  • Quito
  • Roatán
  • San José de Costa Rica
  • San Pedro de Sula

Avianca Holdings S.A., previously announced on June 4, through its subordinates Grupo Taca Holdings Limited and Nicaraguense de Aviacion S.A., it closed the sale of its shares in Turboprop Leasing Company Ltd., parent company of the Costa Rican airline Servicios Aéreos Nacionales S.A (SANSA) and in Nicaraguan airline Aerotaxis La Costeña S.A (La Costeña).  These airlines operate domestic flights in Costa Rica and Nicaragua, respectively.

The buyer is Regional Airlines Holding LLC., domiciled in Delaware, USA. The transaction was closed on May 31, 2019 by perfecting the contract for the purchase and sale of shares entered into on April 22 between the parties.

This transaction occurs within the framework of the Holding’s new corporate strategy aimed at strengthening its international passenger transportation segment, as well as focusing on the loyalty (LifeMiles) and cargo transportation (Avianca Cargo) business units.

It is important to note that with this transaction, thirteen Cessna 208 and two ATR 42 aircraft will no longer be part of Avianca Holdings’ fleet, in line with the company’s fleet simplification strategy.

In Costa Rica, the Holding has its own airline (Avianca Costa Rica S.A.), operating direct flights to the company’s three hubs: (San Salvador, Bogota and Lima); as well as the Guatemala City and Panama City. Likewise, flights to destinations in Canada, Chile, Ecuador, the United States and Mexico are operated with Costa Rican crews.

Top Copyright Photo: TACA International Embraer ERJ 190-100 IGW N936TA (msn 19000215) MIA (Brian McDonough). Image: 908637.

SMBC Aviation Capital delivers the first Boeing 787-9 to Avianca

SMBC Aviation Capital has announced the delivery of one Boeing 787-9 aircraft (N797AV, msn 43983) equipped with Trent 1000 engines to Avianca.

This aircraft is the first delivery of a three Boeing 787-9 sale and lease back PDP financed transaction with the airline. The second and third aircraft are expected to be delivered in 2021

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 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

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Synergy Aerospace Corporation signs MOU for 62 Airbus A320neo aircraft

Synergy Aerospace Corporation, Avianca’s largest shareholder and owner of Avianca Brasil (Sao Paulo), has signed a Memorandum of Understanding (MOU) with Airbus for 62 A320neo Family aircraft. The agreement paves the way for Avianca Brasil to base its fleet renewal and network growth strategy on the A320neo Family.

Synergy Aerospace logo

“These 62 A320neo aircraft will make it possible for Avianca Brasil (OceanAir Linhas Aereas) to take an important leap toward growing and modernizing its fleet, while improving passenger experience,” said German Efromovich, Chairman of Synergy.

Avianca Brasil logo

Synergy has ordered 10 A350 XWBs, six A330-200 passenger, one A330-200 Freighter and 20 A320 Family aircraft. Avianca Brasil currently operates 38 A320 Family aircraft and one A330 Freighter aircraft.

Once the order is firm, Airbus will have sold 407 A320neo aircraft to seven customers in Latin America — Avianca, Azul, Interjet, LATAM, Synergy, VivaAerobus and Volaris. With more than 950 aircraft sold and a backlog of almost 500, nearly 600 Airbus aircraft are in operation throughout Latin America and the Caribbean. In the past 10 years, Airbus has tripled its in-service fleet while delivering more than 60 percent of all aircraft operating in the region. In May, Airbus celebrated its 500th aircraft delivery in Latin America.

Top Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Avianca in Brazil operates the current version of the Airbus A319 and A320. Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-214 WL PR-OCD (msn 6173) with Sharklets arrives at Sao Paulo (Guarulhos) in the new 2013 Avianca delivery.

Avianca Brasil aircraft slide show: AG Airline Slide Show

Avianca firms up its order for 100 Airbus A320neo Family aircraft

Airbus (Toulouse) has issued this statement:

Airbus logo (large)

Following a Memorandum of Understanding (MOU) announcement in February, Avianca (Bogota) has signed a purchase agreement for 100 A320neo Family aircraft, the largest single order ever made in Latin America’s aviation history. The agreement, which includes A319neo, A320neo and A321neo aircraft (below), will allow Avianca to maintain one of the youngest fleets in the region as the airline aims to replace airplanes currently operating from their Bogota, Lima and San Salvador hubs.

Avianca A320neo and A321neo (Flt)(Airbus)(LRW)

Image Above: Airbus.

Avianca (2013) logo

Established in Colombia in 1919, Avianca was the first airline in the Americas, and is the second oldest airline in the world. The Airbus-Avianca partnership was taken to a new level in 1998 when TACA (now part of Avianca), LAN, and TAM placed a joint order for 90 single-aisle aircraft. This was the largest joint contract ever signed in Latin American commercial aviation history. To date, the Avianca airline group has ordered nearly 300 aircraft including 276 A320 Family (among them, 133 A320neo Family) and 15 A330 Family.

To date, the A320neo program has 345 firm orders from six customers in Latin America — Avianca, Azul, Interjet, LATAM Airlines Group, VivaAerobus and Volaris. With more than 950 aircraft sold and a backlog of nearly 500, more than 550 Airbus aircraft are in operation throughout Latin America and the Caribbean. In the last 10 years, Airbus has tripled its in-service fleet, while delivering more than 60 percent of all aircraft operating in the region.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. Avianca will remain an Airbus A320 Family operator. Current generation Airbus A320-214 N724AV (msn 6153) climbs away from Miami International Airport (MIA).

Avianca (Colombia) aircraft slide show: AG Airline Slide Show

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