Brazilian airline Avianca returns 18 aircraft to leasing companies due to debts

AviancaThe Brazilian airline Avianca Brasil started returning aircraft belonging to leasing companies due to late payments.

As specified on the website of the national regulatory authority in the field of civil aviation, the agency agreed to defer the relevant requirements of the owners of aircraft in connection with Easter holidays (April 19-21) in the second largest number of Christians in the world after the US In total, 18 aircraft that are in use by the carrier will be returned to the owners, GECAS, PK, Vermillion and ACG. In addition, Avianca is prohibited from selling air tickets on routes that will be affected by this decision.

Over the last week, the company announced the cancellation of 380 domestic flights after the lessors have obtained a refund of 18 aircraft leased by the company. In addition, Avianca Brasil has recently experienced difficulties in paying for the services of operators of Brazilian airports.

At the same time, the recent creditor approval of the airline’s recovery plan has shuffled interest on taking ownership of the airline’s assets, with Azul recently backing off the 105 million USD non-binding agreement signed last month, that would see Neelman’s South American venture take control of 30 A320 aircraft in addition to 70 airport slots.

Avianca Brasil has canceled more than 1,300 flights, Brazilian media reported on Saturday, as the bankrupt airline was forced to reduce its fleet by more than two-thirds.

Avianca Brazil is a Brazilian airline based in Sao Paulo, Brazil. It operates passenger services from 25 destinations. Its main bases are Brasília International Airport and Sao Paulo-Guarulhos International Airport. According to the National Civil Aviation Agency of Brazil (ANAC), between January and December 2018 Avianca Brazil had 13.4% of the domestic and 7.3% of the international market shares in terms of passengers per kilometer flown, making it the fourth-largest airline both in domestic and international traffic in Brazil.