Avianca Brazil enters decisive week for its survival



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Avianca Brazil will have a huge challenge to survive this week (Avianca)

After seeing his situation worsen in recent days, the Avianca Brasil will begin the week with the challenge of staying alive in the Brazilian market. The airline, which has been in judicial recovery since December, you must return 18 A320 jets as of this Monday (22), practically almost all its base of airplanes.

Through an agreement brokered by ANAC with the leasing companies, Avianca will phase out these aircraft after Easter in order not to harm passengers further. Six A320CEOs will be returned to ACG, six A320NEO and one CEO to GECAS, four A320CEO to Vermillion and one A320NEO to PK Air Finance. With this will remain in the Avianca fleet some A318 and A320, insufficient for the company to maintain a minimum flight network.

The company, which has increasingly canceled flights, can not generate enough cash even to pay airport charges that threaten even operation at some airports. With no prospect of receiving any kind of contribution and with the auctioning of its assets still distant – according to the Official Gazette of the State of São Paulo, it is scheduled for May 7 – Avianca's operation is seriously threatened.

Blue out of bounds

In addition to the scorched earth scenario that awaits her this week, Avianca has Blue's withdrawal from participating in the asset auction. The airline was the first to express interest in the estate of the rival in March, but intended to pay for the entire "package" of slots, part of the fleet and the "Amigo" loyalty program, in addition to considering the hiring of company employees.

But a joint maneuver Gol and LATAM who joined Avianca's largest creditor, ended Blue's plans by slicing the assets into seven lots and thereby virtually preventing David Neeleman's company from taking everything that interested him, ie the slots at busy airports. The proposal approved by the creditors of Avianca tries to increase the competition by the assets and thus to increase the amount paid, however, the Azul discarded to participate of the auction.

Gol and LATAM are still confirmed, but if they take the slots in Congonhas, Guarulhos and Santos Dumont risk losing those schedules due to the concentration of the market – both are already the largest operators of these terminals.

Except for the Amigo program, it is a fact that the only attraction of Avianca is the slots which in theory could not be sold after all are concessions of the ANAC. Of course, one can expect a delayed battle in the courts brought by Azul. The big question is whether Avianca Brasil will last until then.

Avianca A320 planes returned by Avianca in the MAM of LATAM in São Carlos: more "visitors" this week? (Reproduction / Instagram)

See also: As a Brazilian sister, Avianca Argentina is in crisis

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