Avianca (Colombia) (Bogota) has announced it will resume regular service between Bogota and London (Heathrow) in July. Airbus A330s (above) are expected to be operated on the restored route.

In other news, the company has also announced its has temporarily grounded its remaining Fokker 50s. The company issued this statement:

Avianca (Colombia) (Bogota) will launch a new route from Cartagena nonstop to New York (JFK) on July 17. The new route will be operated three days a week with Airbus A319s per Airline Route.

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A3219-132 N690AV (msn 5944) with Sharklets departs from Tenerife (Sur) on its delivery flight.

Avianca (Colombia): 

Avianca Holdings S.A. (Avianca) (Bogota) reported operating income (EBIT) of $70.3 million for the third quarter (3Q).

As a result the operating margin for 3Q 2014 reached 5.7%, an increase of 130 basis points over the 2Q of 2014. The operating income (EBIT) for the nine-month period of 2014 was $170.1 million; as a result, the operating margin for the first nine months of 2014 was 4.9%.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Avianca’s (Colombia) Airbus A320-233 N603AV (msn 5840) with Sharklets arrives in Los Angeles.

Avianca aircraft slide show: 

Avianca (Colombia) (Bogota) is planning to introduce the new Boeing 787-8 Dreamliner on the Bogota – New York (JFK) route on January 16. Per Airline Route, the carrier is also planning to introduce the new type to Buenos Aires (February 1), Sao Paulo (Guarulhos) (February 10), Santiago (February 13), Mexico City (February 17), London (Heathrow) (July 2) and Madrid (October 25). Some of the routes using the aircraft will be seasonal until all 787s are delivered.

Top Copyright Photo: Steve Bailey/AirlinersGallery.com (all others by Avianca). The pictured Boeing 787-8 Dreamliner N780AV (msn 37502) was delivered on December 17, 2014. Avianca is celebrating 95 years of flying.

Avianca aircraft slide show:

Avianca Holdings S.A. (Avianca) (Bogota) has signed a Memorandum of Understanding (MOU) with Airbus for 100 A320neo Family aircraft. Avianca will base its fleet renewal strategy on the A320neo Family.

Avianca has partnered with Airbus on its fleet modernization and expansion programs for years. In 2012, Avianca ordered 51 A320 Family aircraft, including 33 A320neo aircraft. The airline group has combined orders for nearly 200 Airbus aircraft, with nearly 130 currently in operation.

Firm orders for the NEO reached over 3,600 aircraft from 70 customers.

To date, the A320neo program has 245 firm orders from seven customers in Latin America — Avianca, Azul, Interjet, LAN, TAM, VivaAerobus and Volaris. With more than 850 aircraft sold and a backlog of nearly 400, more than 550 Airbus aircraft are in operation throughout Latin America and the Caribbean.

Image:

Avianca (Colombia) aircraft slide show:

Avianca (Colombia) (Bogota) is planning to resume Bogota – Los Angeles service on July 1. The restored route will operate four days a week with Airbus A330-200 aircraft per Airline Route.

Copyright Photo: Airbus A330-243 N342AV (msn 1342) in the Star Alliance livery sits between flights at London (Heathrow).

Avianca (Colombia) aircraft slide show: 

United Airlines (Chicago) is now considering the new Airbus A321LR (Longer Range) as a thin route replacement aircraft to its large and aging Boeing 757 fleet according to Reuters.

Boeing is now finally agreeing to look at this noticeable gap in its line-up between the Boeing 737-900ER and the 787-8 Dreamliner. Boeing stated on Monday is was discussing studies of a model slightly larger than the 757 with greater range.

United has also said it will look at what Boeing comes up with but it could be too late as Airbus is making inroads in this niche airplane market.

Avianca is also considering the Boeing 787-9 according to the article.

Read the full article: CLICK HERE

Copyright Photo: Fred Freketic/AirlinersGallery.com. United is a large Boeing 757 operator (second to Delta) and also, because of the merger between United and Continental, is a large Boeing 737 and Airbus A320 operator. The 757-200 (especially with the pictured Aviation Partners Boeing Blended Winglets) is ideal for the summer trans-Atlantic long and thin European markets. Boeing 757-222 N568UA (msn 26674) is seen at JFK International Airport in New York.

United Airlines aircraft slide show (current livery): 

Airbus (Toulouse) has issued this statement:

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.

Image Above: Airbus.

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: 

Copyright photo: Avianca (Colombia) Airbus A319-115 N726AV (2016 Summer Olympics Colombia Football Team) IAD (Brian McDonough). Image: 933881.

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:

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:

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 States – Latin 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 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 17^th, the airline inaugurated the route Munich – Bogota. 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.

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

Route Map (in Spanish):

From Reuters:

United Airlines launched a management overhaul at Colombia’s Avianca Holdings on Friday, removing top shareholder German Efromovich from controlling the cash-strapped airline, according to regulatory filings.

United, which is proposing a three-way joint business agreement with Avianca and Panama’s Copa, said the move follows a default by Efromovich’s holding company BRW Aviation on a $456 million loan it made six months ago.

The Chicago-based airline, part of United Continental Holdings Inc, is seeking a deeper foothold in Latin America, which is considered ripe for air travel growth.

United’s loan was backed by Efromovich’s 51.5% stake in Avianca. However, the U.S. airline’s contract with its pilots restricts the company from majority ownership in another carrier. As a result, United is ceding voting rights to Kingsland Holdings, the Colombian carrier’s second-largest shareholder.

Kingsland is controlled by Roberto Kriete, who was embroiled in a long and bitter legal fight with Efromovich over the best strategy for heavily indebted Avianca.

Another Efromovich carrier, Avianca Brasil, filed for bankruptcy protection in December and its operations were suspended on Friday by Brazil’s civil aviation regulator ANAC.

United said it was willing to loan up to $150 million to Avianca Holdings.

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

Avianca Holdings S.A. (Avianca) (Bogota) has signed a Memorandum of Understanding (MOU) with Airbus for 100 A320neo Family aircraft. Avianca will base its fleet renewal strategy on the A320neo Family.

Avianca has partnered with Airbus on its fleet modernization and expansion programs for years. In 2012, Avianca ordered 51 A320 Family aircraft, including 33 A320neo aircraft. The airline group has combined orders for nearly 200 Airbus aircraft, with nearly 130 currently in operation.

Firm orders for the NEO reached over 3,600 aircraft from 70 customers.

To date, the A320neo program has 245 firm orders from seven customers in Latin America — Avianca, Azul, Interjet, LAN, TAM, VivaAerobus and Volaris. With more than 850 aircraft sold and a backlog of nearly 400, more than 550 Airbus aircraft are in operation throughout Latin America and the Caribbean.

Image:

Avianca (Colombia) aircraft slide show:

Avianca is celebrating its 100th anniversary with the addition of an Airbus A320 (N284AV) painted in the 1940 livery with a special “100 Anos” logo.

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 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 (Colombia) made this announcement:

As is public knowledge, most countries around the world have closed their borders, limiting mobility for domestic and foreign passengers in the region. This situation directly affects Avianca’s capacity to maintain its operation.

Therefore, starting at 00:00 hours on March 23, all international operations will be suspended and domestic operations in Colombia will be reduced by 84%. These decisions are complicated and painful for Avianca and its employees whose main purpose is to connect passengers to and from Latin America. Below are details of the actions that will be implemented:

1. Complete suspension of the international operation and reduction of domestic operation in Colombia by 84%: 

As of March 23 at 00:00 hours and until April 30, Avianca will fully suspend its international operation.  The domestic operation will include service from Bogota to capital cities and some regions. The above will be subject to the evolution of the situation, availability and willingness of clients to travel and additional measures that may be taken by local and national governments that affect the operation.

Therefore, flight scheduling may change on a daily basis and passengers will be informed when this happens. Avianca will inform changes through the Covid-19 website and other channels: Avianca Escucha @AviancaEscucha, email, Whatsapp for clients of the Diamond and Gold loyalty program and Avianca News Center.

The company will also be forced to ground 132 aircraft: 22 wide-body, 100 narrow-body and 10 ATRs. Avianca will use 5 Airbus A320s and 5 ATRs for its domestic operation.

2. Labor Measures

This unprecedented global situation for the airline industry requires difficult and immediate decisions as a result of the reduction of its operation. The following measures will be implemented starting today:

• Hiring freeze.
• Implementation of voluntary unpaid leave.
• Negotiation of payment conditions with suppliers and partners.
• Extension of non-essential costs and capital expenses.

3. Financial measures: cost control, savings and suspension of investments:

All investments, expenses or projects not tightly linked with maintenance and the domestic operation, as well as travel and events, will be suspended. Additionally, Avianca is negotiating with various partners to decide upon next steps.

“This is, without a doubt, the greatest crisis for the airline industry in history. The decisions we are taking not only hurt us, they are extremely difficult, but we must be flexible and face the situation. The full suspension of our international operation and the strong contraction of domestic demand, forces us to send most of our employees home. It is time for regional governments to take exceptional measures that mitigate the social and economic impact affecting hundreds of industries. If we want to reconnect Latin America and preserve the more than 20.000 jobs we create, we will need joint cooperation and collaboration of industry stakeholders and above all, the support and cooperation of governments”, said Anko van der Werff, President and CEO of Avianca Holdings.

During this situation, Avianca has cooperated with governments and embassies for foreign nationals in Colombia and other countries to return to leave the country and return home.

Avianca aircraft photo gallery: