BOGOTA, Colombia, Jan. 7, 2020 /PRNewswire/ -- 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."  

ABOUT AVIANCA HOLDINGS S.A.
The terms "Avianca Holdings" or "the Company" refer to the consolidated entity. The original source-language text of this announcement is the official, authoritative version, Translations are provided as an accommodation only, and should be cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.

Avianca Holdings S.A. (NYSE: AVH) (BVC:PFAVH) comprises the airlines: Aerovías del Continente Americano S.A.—Avianca, Tampa Cargo S.A., incorporated in Colombia, Aerolineas Galapagos S.A.—Aerogal, incorporated in Ecuador, and the TACA Group companies: TACA International Airlines S.A., incorporated in El Salvador, Lineas Aereas Costarricenses S.A.—LACSA, incorporated in Costa Rica, Transamérican Airlines S.A.—TACA Perú, incorporated in Perú, Servicios Aéreos Nacionales S.A.—SANSA, incorporated in Costa Rica, Aerotaxis La Costeña S.A., incorporated in Nicaragua, and Isleña de Inversiones S.A. de C.V.—ISLEÑA, incorporated in Honduras.

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SOURCE Avianca Holdings S.A.

Copyright 2020 PR Newswire

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