Thursday, 13 December 2018

More woes for Avianca Brazil as aircraft are repossessed but could hope be just around the corner.

Avianca Brasil, one of the largest airlines in Brazil filed for bankruptcy protection earlier this week claiming its operations had been threatened by a number of possible aircraft repossessions.

The airline says that any aircraft repossessions would hamper its ability to continuing to operate flights and therefore saves itself from certain collapse. In papers Avianca Brasil filed it states some leasing companies were seeking to regain possession of around 30% of the Airbus fleet the carrier flies. Such a reduction in the number of aircraft could affect the carries ability to fly more than 77,000 passengers in December.

However, aircraft are starting to go, Aviation Capital Group announced n Wednesday 12th that it had terminated the leases for, and has initiated legal action to repossess, eight Airbus A320-200s and one A319-100 aircraft currently in the possession of Avianca Brazil. Asia’s largest listed aircraft lessor, BOC Aviation also confirmed on Wednesday it had repossessed two Airbus A320 aeroplanes. planes. Another aircraft leasing firm, Air Castle, is appealing to the courts for 11 aircraft back from the carrier. The aircraft are still under Avianca Brasil's control, for now, its asked the courts to ensure it can keep them flying, but leasing companies are fighting hard to take them back. 

It is understood that a rescue may be on the cards at this late stage from the carriers main backers, Avianca Holdings SA owners, the Efromovich family, were in negotiations with various fund managers for a rapid implementation of extra finance to rescue the airline. However, no details of which funds, how much and when any such deals would come to fruition has been disclosed at this stage.