Avianca Brazil has filed for the equivalent or US Chapter-11 Bankruptcy protection. Flights and operations will continue at least for now.
The company has been unable to renegotiate leases for 21% of its fleet on lease from US lessor Aircastle.
They issued a press announcement saying they had sent out orders to repossess 10 A320’s and one A330-200.
The airline basically hasn’t paid for its leases either in full or in part for some time and Aircastle has been trying to find a way for Avianca to transfer ownership to others willing to take on the leases, but with Avianca’s payment record, nobody seems interested.
A Brazilian judge has temporarily stopped the repossession – if the aircraft stay in Brazil.
Almost the entire Avianca Brazil fleet is leased, 48 aircraft, inlcuding 5 A318, 2 A319 2 more are owned), 38 A320, and 3 of 5 A332’s, the last 2 are also owned.
The question has to be how many more of the airlines 4 additional lessors haven’t been paid? Once one lessor strats the ball rolling on repossessions, the others are going to get very nervous. Avianca Brazil is supposed to take delivery of another A332 on lease from Avolon any day.