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AVI-2005-05-B-767 NEW LIVERY
AVI-2005-09-A-767-2B1ER NEW LIVERY
AVI-2013-03 - BOGOTA DOMESTIC ROUTES
AVI-2013-03 - BOGOTA TOP 10 INTNL ROUTES
AVI-2013-05 - UNIFIED AVIANCA LIVERY A320
AVI-2013-07 - AVIANCA REBRAND
AVI-2017-05 - Bogota to Montevideo.jpg
AVI-FC and Cabin Attendants 2017-08 YY.jpg
ESTABLISHED IN 1940. AVIANCA (AVI) CLAIMS TO BE THE OLDEST AIRLINE IN THE AMERICAS AND THE SECOND OLDEST IN THE WORLD - FOUNDED IN 1919, BY 5 COLOMBIANS & 3 GERMANS BY THE MERGER OF SCADTA AND SERVICIO AEREO COLOMBIANO. A K A "AERVIAS NACIONALES DE COLOMBIA." DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER AND CARGO, JET AIRPLANE SERVICES.
CENTRO ADMINISTRATIVO, AVENIDA ELDORADO 92-30
BOGOTA 1, COLOMBIA
COLOMBIA (REPUBLIC OF COLOMBIA) COVERS AN AREA OF 1,138,914 SQ KM, ITS POPULATION IS 43 MILLION, ITS CAPITAL CITY IS BOGOTA, AND ITS OFFICIAL LANGUAGE IS SPANISH.
SEPTEMBER 1991: SERVICES TO BUENOS AIRES, CARACAS, LIMA, LOS ANGELES (LAX), MANAUS, MIAMI (MIA), NEW YORK, QUITO, RIO DE JANEIRO, SANTIAGO, MADRID, AND PARIS.
767 EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) TO MADRID, PARIS, AND FRANKFURT.
757 LEASES TO REPLACE 707'S (GROUNDED DUE TO HIGH MAINTENANCE COST, HIGH FUEL CONSUMPTION, LOW PASSENGER APPEAL) NOW FOR SALE.
(FAA) REVOKED POWER PLANT, REPAIR STATION CERTIFICATE, DUE TO LACK OF PROPER ENGINE TEST CELL INSTRUMENTATION.
JANUARY 1993: 1992 = +$6.8 MILLION (NET PROFIT) (-$51.3 MILLION): -.7% (RPK) (PASSENGER TRAFFIC), -1.2% PASSENGERS (PAX), -11.4% (FTK) (FREIGHT TRAFFIC).
MARCH 1993: CLOSED BARRANQUILLA MAINTENANCE OVERHAUL BASE.
OCTOBER 1993: 1 757-200, DELIVERY.
JANUARY 1994: 1993 = +$8.2 MILLION. LAST 6 MONTHS = -4% PASSENGERS (PAX).
APRIL 1994: 1 757-200 (RB211-535E4) DELIVERY.
JULY 1994: 1ST 6 MONTHS = +10% (RPK) (PASSENGER TRAFFIC), +19% PASSENGERS (PAX), -15% (FTK) (FREIGHT TRAFFIC).
4,200 EMPLOYEES (INCLUDING 291 FLIGHT CREW (FC), 455 CABIN ATTENDANTS (CA), & 631 MAINTENANCE TECHNICIANS (MT)).
OCTOBER 1995: (FAA) DOWNGRADED COLOMBIAN OVERSIGHT OF SAFETY STANDARDS TO CATEGORY 2, ALLOWING 120 DAYS TO MEET STANDARDS, OR BE BANNED FROM FLYING INTO USA.
JANUARY 1996: 1995 = +$15 MILLION.
JUNE 1996: IN-FLIGHT SHUTDOWNS OF (PW) ENGINES ON 767'S MADE COLOMBIAN REGULATORY AUTHORITY LIMIT 180 MINUTES EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) TO 120 MINUTES.
+1 757-28A (RB211-535E4), EX-(BKL), (ILF) 5 YEAR LEASED.
AUGUST 1996: TO SOLVE DELAYS FROM COMPLETION OF "C" CHECKS, SENT 1ST MD-83 TO SHANNON AEROSPACE, IRELAND.
SEPTEMBER 1996: CONTRACT FOR 4 TECHNICIANS (MT), FROM BRITISH CO (TSI) FOR HANDS-ON 2 MONTHS WORK WITH LINE MAINTENANCE, AND OVERNIGHT SERVICES.
FRANCISCO MEJIA, DIRECTOR PRODUCTION PLANNING & CONTROL, EX-TEXTILE INDUSTRY, APPOINTED BY THE PRESIDENT.
NEW 757 PRIMARILY SERVES CARACAS, QUITO & LIMA. DISPUTE WITH US ON
ROUTES TO/FROM USA, RESOLVED.
NOVEMBER 1996: SHANNON AEROSPACE MAINTENANCE CONTRACT FOR 11 MD-83'S, INCLUDING TRAINING FOR DEVELOPMENT OF MAINTENANCE PROGRAM.
DECEMBER 1996: 757 & 767 MAINTENANCE BY PEMCO, ALABAMA. (PEMCO) TO SUPPLY 57 MECHANICS TO WORK AT AVIANCA (AVI), BOGOTA FOR 2 YEARS.
JANUARY 1997: CODE SHARE WITH AMERICAN AIRLINES (AAL).
STUDY TO REOPEN BARRANQUILLA OVERHAUL BASE, CLOSED SINCE MID 1992.
+1 767-284ER, AWAS (AWW) 3 YEAR LEASED (FEBRUARY 1997). +2 737-500'S (1998).
APRIL 1997: WITH LIQUIDATION OF VIASA, EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) ROUTE TO FRANKFURT, NOW VIA CARACAS.
FISCAL YEAR (FY) 1996 = +$18.9 MILLION (+$25.5 MILLION)).
3,400 EMPLOYEES (INCLUDING 950 FLIGHT CREW (FC) AND 640 MAINTENANCE TECHNICIANS (MT)).
+2 ORDERS 737-500, NOW 5. NEW 767-284ER TO FLY TO LONDON HEATHROW IN NEAR FUTURE.
JUNE 1997: 727-2H3 (20739) IN SPECIAL COLOR SCHEME WITH "BANCOQUIA" ON FUSELAGE. OTHER 727 (HK-2152X) HAS COLOR SCHEME WITH "AVIANCACIONES."
SEPTEMBER 1997: FRANK SPOTHELFER, DIRECTOR ENGINEERING, REPLACES AGUSTIN ARANGO.
OCTOBER 1997: LUIS CARLOS CASTRO, HEAD AIRPLANE ENGINEERING (SYSTEMS & AVIONICS); AND JULIAN QUIROGA, HEAD POWERPLANT ENGINEERING.
PEMCO WORLD AIR SERVICES, DOTHAN, ALABAMA, AWARDED HEAVY MAINTENANCE CONTRACT (35 "C" CHECKS) THROUGH END OF 1998 FOR 4 757'S, 4 767'S, AND 11 MD-83'S.
FEBRUARY 1998: TOM KERN, VP AIRPLANE SCHEDULING, EX-DELTA AIRLINES (DAL).
+1 MD-83, (AWAS) (AWW) 5 YEAR LEASED, FOR TOTAL 12 (53190), EX-HELIOPOLIS.
APRIL 1998: 3,400 EMPLOYEES (INCLUDING 950 FLIGHT CREW (FC) & 640 MAINTENANCE TECHNICIANS (MT)).
MAY 1998: JAIME AGUIRRE, DIRECTOR ENGINEERING; & FRANK SPOTHELFER, DIRECTOR MAINTENANCE.
1997 FISCAL YEAR (FY) = +$3.2 MILLION.
JUNE 1998: HERNANDO CANCINO, DIRECTOR MAINTENANCE REPLACES FRANK SPOTHELFER.
3 767'S FLY 180 MINUTES EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) TO MADRID, PARIS, LONDON, AND FRANKFURT.
MEMO OF UNDERSTANDING (MOU) +2 MD-83'S, ANSETT (AWW) LEASED.
JULY 1998: COOPERATION AGREEMENT WITH COPA (COP), TO USE PANAMA CITY AS CENTRAL AMERICAN HUB, FOR CARIBBEAN.
AUGUST 1998: HERNANDO CANCINO, DIRECTOR MAINTENANCE.
1ST 6 MONTHS = -$4.8 MILLION (-$4.4 MILLION).
6 ORDERS (OCTOBER 1998) EMBRAERS, & 1 +5 ORDERS CESSNA CARAVANS.
OCTOBER 1998: +2 MD-83'S, EX-RENO AIR (RNO), ANSETT (AWW) LEASED, FOR TOTAL 14.
4 757'S HAVE 120 MINUTES EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) APPROVAL.
NOVEMBER 1998: MD-11, WORLD AIRWAYS (WLD) WET-LEASED, TIL JANUARY 1999, FOR SERVICE TO (JFK). MD-83 (53093), WILMINGTON LEASED, EX-RENO AIR (RNO).
DECEMBER 1998: MD-83 (53183), EX-RENO AIR (RNO), (AWW) LEASED.
JANUARY 1999: FOR 4TH YEAR, (FAA) RATES COLOMBIA CATEGORY 2.
FERNANDO CAMACHO, DIRECTOR MATERIAL & PRODUCTION CONTROL, REPLACES MR TEJADA, WHO RESIGNED.
FEBRUARY 1999: AUGUSTO LOPEZ VALENCIA, CHAIRMAN, RESIGNS AFTER 13 YEARS, REPLACED BY ANDRES OBREGON, 37 YEAR OLD, NEPHEW OF JULIO MARIO SANTO DOMINGO, OWNER OF SANTO DOMINGO GROUP, OWNS BAVARIA BREWERY, CELLULAR COMPANY, CELUMOVIL, & (AVI).
APRIL 1999: DOMESTIC MARKET SHARE = 40%.
3,400 EMPLOYEES (INCLUDING 950 FLIGHT CREW (FC) & 640 MAINTENANCE TECHNICIANS (MT)). SITA: BOGEDAV.
1 ORDER (MAY 1999) 767-283, EX-TRANSBRASIL (TBL). WHEN 767-300ER LEASE EXPIRES IN AUGUST 1999, WILL PROBABLY REPLACE IT WITH A 767-200ER LEASED.
INCDT: AVIANCA (AVI) F 50 HIJACKED BETWEEN BUCARAMANGA & BOGOTA BY (ELN) REBELS & LANDED AT A REMOTE AIRSTRIP = ALL 41 PASSENGERS & CREW TAKEN HOSTAGE, LATER 9 WERE RELEASED.
MAY 1999: 767-283ER (24728, PT-TAJ), NOT TAKEN UP (NTU).
JUNE 1999: F 50 HIJACKING CONTINUES WITH 1 HOSTAGE DIED IN CAPTIVITY. CREW AND 16 PASSENGERS STILL BEING HELD BY REBELS.
JULY 1999: MEDIA RUMORS OF AVIANCA (AVI) SELLING 30% STAKE TO EITHER CONTINENTAL AIRLINES (CAL) OR DELTA AIRLINES (DAL), FROM SHARES HELD BY COLOMBIAN BREWERY, VALORES BAVARIA, (AVI)'S MAIN SHAREHOLDER.
1 767-2B1ER (25421, N421AV), AEROUSA LEASED, EX-TRANSBRASIL (TBL).
AUGUST 1999: 1ST 6 MONTHS = -$36.8 MILLION (-$3.8 MILLION): 2.53 BILLION (RPK) (+11.4%), 260 MILLION (FTK) FREIGHT TRAFFIC (+5.9%), 1.96 MILLION PASSENGERS (PAX) (+.6%).
2 OF 3 727-2A1'S SOLD TO FINOVA (GRB) AND LEASED TO ALLEGRO (AEG).
SEPTEMBER 1999: THE (FAA) OK'S AVIANCA (AVI)'S FOREIGN REPAIR STATION CERTIFICATE.
NOVEMBER 1999: PARENT COMPANY, VALORES BAVARIA GROUP, MAKES $50 MILLION CASH INJECTION.
(FAA) SAFETY OVERSIGHT RETURNS COLOMBIA TO CATEGORY 1.
1998 = -$6.3 MILLION (+$4.2 MILLION): 2.91 BILLION (RPM) TRAFFIC (+1.2%), 345 MILLION (FTM) FREIGHT TRAFFIC (+3.6%).
5TH 767-300 DELIVERY, AEROUSA LEASED, SUBSIDIARY OF GECAS.
DECEMBER 1999: LUIS CARLOS CASTRO, CHIEF ENGINEERING, RESIGNED.
FEBRUARY 2000: 2,900 EMPLOYEES.
MARCH 2000: EDWIN GAITAN, CHIEF POWER PLANT, REPLACES NELSON KULENHKAMP.
APRIL 2000: 1999 = -$70 MILLION: +12% INTERNATIONAL PASSENGERS (PAX), DUE TO BETTER LINKS FROM REGIONAL ROUTES, & OTHER INTERNATIONAL ROUTES, THROUGH ITS BOGOTA HUB.
NONSTOP TO GUAYAQUIL, ECUADOR.
2,947 EMPLOYEES (INCLUDING 568 FLIGHT CREW (FC), & 560 MAINTENANCE TECHNICIANS (MT)).
LUIS ALBERTO VALENCIA, DIRECTOR ENGINEERING, REPLACES JAIME AGUIRRE, NOW DIRECTOR 3RD PARTY MAINTENANCE. GUSTAVO SUAREZ, DIRECTOR QUALITY ASSURANCE.
JUNE 2000: NEW NONSTOPS TO CANCUN (4/WEEK), SAN JUAN (3/WEEK), & SAN JOSE, COSTA RICA (1/DAY).
AUGUST 2000: BERNARDO QUINTERO, PRESIDENT, REPLACES GUSTAVO LENIS, WHO RETIRED.
1999 = 4.97B RPK (+6%); 66.3% LF; 61.1M FTK; 3.66M PAX (-3.1%); 2,947 EMPLOYEES.
OCTOBER 2000: ANDRES OBREGON, CHAIRMAN AND (CEO), BAVARIA GROUP, OWNER OF (AVI), HAS RESIGNED AND REPLACED TEMPORARILY BY 82 YEAR OLD, GERMAN MONTOYA.
NOVEMBER 2000: 1 767-33AER (491-25535, /93), EX-AIR SEYCHELLES (ASY), (AWW) LEASED. 1 757-2YO (611-25494, N987AN), RETURNED TO (AWW).
DECEMBER 2000: TO CELEBRATE ITS 60TH ANNIVERSARY THIS YEAR, REPAINTED 757-2Q8 (612-26269, N321LF) IN SPECIAL "RETROJET" COLOR SCHEME FEATURING (AVI)'S 1960 BLUE & WHITE LIVERY.
1 MD-83 (1603), EX-BWIA (TTA), CIT AEROSPACE (TCI) LEASED.
JANUARY 2001: (MOU) FOR POSSIBLE MERGER WITH ACES (ACE), AND INCLUDING (SAM).
MARCH 2001: NOW PLANNING ONLY PARTIAL MERGER WITH ACES (ACE), WITH BOTH OPERATORS OWNED BY SAME COMPANY, BUT EACH WOULD CONTINUE TO OPERATE SEPARATELY.
2000 = -$183.2 MILLION (-$54.9 MILLION): +59% FUEL COSTS.
APRIL 2001: BERNARDO QUINTERO, (CEO), RESIGNS, PAVING WAY FOR MERGER WITH ACES (ACE), WITH THEIR (CEO), JUAN EMILIO POSADA, TIPPED TO BECOME (CEO) OF MERGED AIRLINE. IN THE INTERIM, ERNESTO VASQUEZ ROCHA, WILL ACT AS (AVI) PRESIDENT.
3 F 50'S (20266; 85; 8) SUB-LEASED TO (SAM).
MAY 2001: IN 6/01, CALI - MIAMI (MIA).
MD-83 (53093) RETURNED TO AWAS (AWW).
JUNE 2001: GOVERNMENT REJECTS MERGER WITH ACES (ACE).
SIGNS UP FOR myboeingfleet.com.
1 757-236 (RB211-535E4) (34-22185, /84 N951PG), EX-AIR EUROPA (ARE), PEGASUS (PSS) LEASED. 2ND 757-236 (57-23227, /85), EX-(ARE), (PSS) LEASED. 2 747-200'S (RR ENGINES), (PSS) LEASED.
JULY 2001: RECEIVES (ISO) 9001 VERSION 2000 FOR AIRCRAFT MAINTENANCE.
AUGUST 2001: VYTIS DIDZIULIS, PRESIDENT, REPLACES ERNESTO VASQUEZ ROCHA.
SEPTEMBER 2001: 1 757-200, 12C, 162Y FOR MEDIUM-HAUL ROUTES TO MIAMI, CARACAS, LIMA, AND QUITO. TO MARK ITS 80TH ANNIVERSARY, PAINTS A 757-200 (N321LF) IN A "RETROJET" PAINT SCHEME.
OCTOBER 2001: FACED WITH WORST CRISIS IN LATIN AMERICAN AVIATION HISTORY, THE HEADS OF 11 MAJOR AIRLINE MEMBERS OF THE LATIN AMERICAN AIR TRANSPORT ASSOCIATION (AITAL) INCLUDING: (ACE); (AVI); (AMX)/(CMA); (LAV); (AVN); (SEZ); (COP); (LAN); (TAC); (VAR); & (VSP), MET IN MIAMI TO SEEK SOLUTIONS AND POSSIBLE HELP FROM GOVERNMENTS.
DECEMBER 2001: COLOMBIA'S CIVIL AVIATION AUTHORITY, AEROCIVIL, FINALLY APPROVED THE OPERATIONAL "INTEGRATION" OF AVIANCA (AVI) AND ITS SUBSIDIARY (SAM), WITH ACES (ACE), TO TAKE PLACE IN EARLY 2002. (AVI)/(SAM)/(ACE) WILL HAVE 70% DOMESTIC MARKET SHARE.
PARENT, VALORES BAVARIA, GIVES (AVI) A $209 MILLION INFUSION.
FEBRUARY 2002: NEXT MONTH, JUAN EMILIO POSADO, FORMER PRESIDENT OF ACES (ACE), WILL TAKE OVER AS PRESIDENT & (CEO) OF (AVI)/(ACE) OPERATING ALLIANCE.
MARCH 2002: 2001 = -$125.4 MILLION (-$185.8 MILLION).
APRIL 2002: 3,309 EMPLOYEES (INCLUDING 408 FLIGHT CREW (FC), 616 CABIN ATTENDANTS (CA), & 5 MAINTENANCE TECHNICIANS (MT)).
ACES (ACE), AVIANCA (AVI), AND (SAM) WILL OPERATE UNDER THE BRAND NAME OF SUMMA (LATIN FOR "SUMMIT") ALLIANCE. SUMMA'S OWN LOGO, IS A WINGED, BUTTERFLY-LIKE STYLIZED IMAGE, WHICH SERVES AS AN UMBRELLA FOR THE SMALLER (AVI), (ACE), & (SAM) LOGOS. (AVI) WILL STILL FLY THE BOGOTA - MIAMI (MIA) ROUTE, WHEREAS (ACE) WILL FLY TO (MIA) NONSTOP FROM MEDELLIN, CALI, AND CARTAGENA.
May 2002: Launches "Alianza Summa." All airplanes to be painted white and grey, with new Summa logo, and show the name of the individual carrier.
July 2002: New Alianza Summa logo (butterfly symbol) recognizes each airline's color: red for (ACES) (ACE); orange for Avianca (AVI), and green for (SAM).
Barranquilla - Miami.
Ms Lorena Grajales, Fleet Planning Manager replaces Andres Duque who moved to a new business VP assignment.
2001 = -$121 Million (-$196.88 Million): 5.87 Billion (RPK) (-4.9%); 65.9% LF; 4.49 Million (PAX) (-8.1%); 646.16 Million (FTK); 3,550 (+7.3%).
August 2002: 757-256 (26246, N262CT), ex-Iberia (IBE), Tyco (TCI) leased.
November 2002: Code share with Delta Air Lines (DAL) by next summer, including frequent flyer tie-up.
Carlos Parra, interim Director Engineering for Alianza Summma, replaces Julien Pineda, who left the company.
December 2002: (AVI) parent, Valores Bavaria, plans to sell $140 Million in additional stock, to reduce its debt load.
Luis Valencia, Director Quality Control (QC), Alianza Summa, replaces Gustavo Suarez, who left the company. Orlando Zuluaga, Director Maintenance (acting), replaced Luis Valencia. Lucio Barbosa, Director Heavy Maintenance (acting), replaced Miller Castillo, who left the company.
January 2003: Alianza Summa operates Bogota - Fort Lauderdale (FLL) (A320, daily) and Barranquilla (BAQ) - Miami (MIA) (A320, daily).
March 2003: Files for Chapter 11 bankruptcy protection in USA, to restructure -$130 Million debt ($55 Million to leasing firms; $20 Million to bondholders; $15 Million to banks; & $40 Million in miscellaneous debt). Avianca (AVI) has suffered from the slow USA economy, a "drastic" devaluation of the Colombian peso, rising fuel prices, and new restrictions on USA visas for Colombians.
Parent Allianza Summma 2002 = -$29 Million (-$98 Million). Allianza Summa is jointly owned by brewery, Valores Bavaria (who previously owned Avianca (AVI) & (SAM), and the Colombian National Coffee Growers Federation (who previously owned Aces (ACE).
2 757-236's (22185; 23227), returned to Pegasus (PSS), 23227 leased to TransMeridian (TAL).
August 2003: Parent, Alianza Summa 1st 6 months = -COP 128.3 Billion/-$44.4 Million (-COP 104.3T).
September 2003: Code share with Delta (DAL), Miami - Bogota, Baranquilla, Cartagena, Cali, & Medellin; New York - Bogota, & Medellin; and Bogotta - Baranquilla, Cali, Cartagena, Medellin, & Pereira.
2002 = 5,101 Billion (RPK) (-13.1%); -9% (ASK); 60.5% LF (-2.9); 4.5 Million (PAX) (-.7%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
95 (QTA) 6.20; 96 (COI) 5.96; 97 (AAL) EAGLE) 5.94; 98 (LOT) 5.87; 99 (FRO) 5.45; 100 (WJI) 5.49; 101 (MAU) 5.34; 102 (ATLANTIC SE) 5.31; 103 (JPL) 5.16; 104 (SHA) 5.15; 105 (AVI) 5.10; 106 (VLR) 4.96; 107 (SKYWEST) 4.82; 108 (SBL) 4.75; 109 (CNW) 4.67.
October 2003: Bogota - Fort Lauderdale.
LanChile (LAN) is considering taking a stake in Avianca (AVI).
757-236 (22185, N951PG), Pegasus (PSS) leased.
INCDT: 2.6 lbs of cocaine were discovered hidden in peanut bags in an MD-80 in Miami, shortly after it arrived from Barranquilla. The drugs were discovered in the galley by a drug-sniffing dog as part of a routine post-flight search. Customs stated it was fortunate none of the bags had been opened by passengers, since for all practical matters, the cocaine would have killed them.
November 2003: Avianca and (SAM) parent, Alianza Summa will be liquidated, now that ACES (ACE) has ceased operation. There are no immediate plans to remove the Alianza Summa logo from their airplanes and ground facilities.
757-28A (23767), Ansett Worldwide (AWW) leased. 767-33AER (25535) returned to (AWW).
January 2004: 2003 = -COP 309.2 Million/-$114 Million (-202%): 4.65 Billion (RPK) (-10.9%); 66.7% LF; 4.29 Million (PAX) (-6.8%); 86.03 Million (FTK) (+41.6%).
February 2004: USA Bankruptcy Court postpones its decision for a deadline for a restructuring plan by Avianca Airlines (AVI). Rejects a bid from LanChile (LAN) as too low. Is now the subject of interest by Continental Airlines (CAL).
Cartagena - Madrid (charters).
March 2004: (AVI) and Delta Airlines (DAL) have joined each other's frequent flyer programs.
Grupo Sinergy invests $64 MILLION to take a 75% stake in bankrupt Avianca (AVI). Valores Bavaria will sell its 50% stake, and the National Federation of Coffee Growers will sell half of its 50% stake, keeping its remaining 25% for 3 years.
April 2004: A partnership between Continental Airlines (CAL) and (COPA) (COP) has emerged to contest Brazil's Grupo Sinergy for control of a reorganized Avianca (AVI).
3,309 employees (including 408 Flight Crew (FC), 616 Cabin Attendants (CA), & 5 Maintenance Technicians (MT)).
May 2004: 1st Quarter = +49.94 Billion pesos/+$16.4 Million (- 64.87 Billion p).
June 2004: Bankrupt Avianca (AVI) accepted a bid from Brazilian businessman German Efromovich to take control of the airline. Efromovich, who owns Grupo Sinergy and Ocean Air, agreed to invest $64 Million and assume $300 Million in liabilities to acquire 75% of (AVI). Efromovich plans to use (AVI) to connect northern Brazilian cities to International routes via Bogota.
November 2004: (email@example.com).
767-31AER (24948, N948AV), ex-East African (EFZ), (ILF) leased.
December 2004: Santiago - Buenos Aires - Bogota (3/week).
March 2005: Following Brazil's Synergy group's purchase of 75% stake in (AVI), Fabio Villegas, President replaces Juan Emilio Posada.
April 2005: 2004 = +$116 Million (-$108 Million): +18.4% fuel costs.
MD-83 (53046, N836RA), GECAS (GEF) leased.
May 2005: Avianca (AVI) and Iberia (IBE) expand their code share agreements for (IBE) to add its code to (AVI) flights between Bogota and Barranquilla, Bucaramanga, & Armenia, while (AVI) code is added to (IBE) flights between Madrid and La Coruna, Santiago, Vigo, Oviedo, Bilbao, San Sebastian, Pamplona, Majorca, Malaga, & Seville, plus Las Palmas & Tenerife.
October 2005: Lufthansa (DLH) Systems said Avianca (AVI) will begin using ProfitLine/Price forecasting and market analysis solutions in December.
2 MD-83's (53463, N160BS; 53464, N161BS), ex-(JTG)/(ROY), Wells Fargo Bank leased, 10 F 100's (11449; 11457; 11458; 11464; 11467; 11469; 11479; & 11481; 11482; 11514), ex-American Airlines (AAL).
December 2005: 757-28AER (28174, N752NA "ALISA FERRARA"), North American (NNA) wet-leased.
February 2006: Avianca (AVI) will inaugurate service on the Pereira - Barranquilla - New York (JFK) route on June 1st. (AVI) will operate 4x-weekly with an MD-83 departing Pereira on Mondays, Wednesdays, Fridays, Sundays and (JFK) on Mondays, Tuesdays, Thursdays, & Saturdays. (AVI) will inaugurate nonstop service from Bogota to Barcelona on June 17th. The airline will operate 1 flight a week with a 767 departing Bogota on Saturday and Barcelona on Sunday. (AVI) will resume nonstop service from Bogota to Los Angeles on June 15th. (AVI) will operate 3x-weekly, on Thursdays, Saturdays, & Sundays, with a 767. (AVI) will increase the frequency of service from Bogota to Miami from 12 to 14x-weekly on June 14th. The additional 2 flights will depart Bogota on Tuesdays, & Fridays and Miami on Wednesdays & Saturdays. At that point the airline will operate 2x-daily flights, mostly with 767s.
April 2006: Avianca (AVI) will inaugurate nonstop and direct service from Bogota to Barcelona on June 14th. (AVI) will operate 2 flights a week departing Bogota on Wednesdays (via Alivante) and Saturdays (nonstop) and returning from Barcelona on Thursdays & Sundays (nonstop) using a 767. (AVI) will inaugurate nonstop service from Bogota to Alicante on June 14th. The airline will operate a weekly flight departing Bogota on Wednesdays and using a 767. The return flight from Alicante on Thursdays will stop in Barcelona.
June 2006: 5 consortia submitted bids for a 20-year contract to run the El Dorado International Airport, Bogota, the largest airport in Colombia. The winner, which the Colombian government will select in September, will be expected to invest $650 million in modernization projects, according to the Associated Press (AP). Consortiums that submitted bids included Siemens AG (Germany) and Flughafen Zuerich AG (Switzerland), as well as a Corporacion America SA, based in Buenos Aires, which teamed with local investors. The government has already granted concessions to run and modernize other airports in the country, including Cali and Cartegena, according to the (AP).
August 2006: Avianca (AVI) will increase the frequency on its Bogota to Miami route from 14x to 18x-weekly from December 17th. The airline will operate 3x-daily on Mondays, Wednesdays, Fridays, & Sundays and 2 on Tuesdays, Thursdays, & Saturdays, all with 757-200s. (AVI) will increase the frequency on its Medellin to Miami route from 7 to 13x-weekly from December 17th. The airline will operate 2x-daily, except Mondays, all with 757-200s.
(GA) Telesis will disassemble an ex-(AVI) 757-200 and re-market it through its Aircraft Systems Group and Turbine Engine Group.
September 2006: 30 orders 737-800's to replace its 757's and MD-80's. 1st Latin American airline to order 10 787's to replace its 767's in 2010.
October 2006: Avianca (AVI) as Colombia's flag carrier, operates scheduled international services to Europe, the USA, Caribbean, and Latin American destinations. It also operates domestic and charter flights. It is a member of the LatinPass frequent flyer program.
Employees = 5,099.
(IATA) Code: AV - 134. (ICAO) Code: AVA (Callsign - AVIANCA).
Parent organization/shareholders: Grupo Sinergy/Ocean Air (ONE), Brazil (100%).
Owns: (SAM) Colombia (94%)).
Alliances: Air Canada (ACN); Delta Airlines (DAL); Iberia Airlines (IBE); Mexicana (CMA); (SAM) Colombia; (TACA) Costa Rica (LAC); & (TACA) International Airlines (TAC).
Domestic, Scheduled Destinations: Armenia; Barrancabermaja; Barranquilla; Bogota; Bucaramanga; Cali; Cartagena; Cucuta; Manizales; Medellin; Monteria; Pasto; Pereira; Santa Marta; & Valledupar.
International, Scheduled Destinations: Alicante; Aruba; Atlanta; Barcelona; Buenos Aires; Caracas; Curacao; Fort Lauderdale; Guatemala City; Guayaquil; Lima; Madrid; Mexico City; Miami; New York; Panama City; Paris; Quito; Rio de Janeiro; San Jose; San Salvador; Santiago; Sao Paulo; & Valencia.
757-28A (28174, N752NA), North American (NNA) operation ended.
November 2006: Avianca (AVI) Chairman, German Efromovich said the company is in the final stages of negotiating a "big" fleet purchase expected to be completed before the end of January. Speaking at (ALTA)'s third annual Latin American Airlines Leaders Forum in Cancun, Efromovich, who also is (CEO) of Brazil's Synergy Group, said the value of the order, excluding options, is in the area of $2.5 billion and comprises single- and twin-aisle airplanes. They will be divided between Avianca (AVI) and OceanAir (ONE) of Brazil, which both are under the Synergy Aerospace umbrella.
He said he was talking to Airbus and Boeing. Although he declined to identify specific wide body types, he did say the 777 was too large for the airlines' requirements and joked that the A380 likewise was too big. "I can work with the 787," he added in response to a reporter's question. The goal is to replace the entire fleet of the carriers by 2014 with the exception of the F 100s, that are spread among the airlines. Another Synergy airline, (VIP) of Ecuador, flies four Dornier Do-328s.
Efromovich also said OceanAir (ONE) has acquired two 767-322ERs, ex-United Airlines (UAL), one leased and one purchased, that will allow it to launch service to Africa in the 2007 first quarter. The airplanes will operate over a Sao Paulo - Lagos - Luanda - Sao Paulo routing. Although service will be started under the OceanAir (ONE) brand, his intent is to brand all of the group's airlines under the Avianca (AVI) name, although not all names will disappear, because some are involved in non-airline aviation activities. OceanAir (ONE) also has the authority to fly to Johannesburg and likely will begin the route after it acquires a third 767, he said.
March 2007: Aerolineas Argentinas (ARG) and Avianca (AVI) signed a code share agreement under which (ARG) passengers on the carrier's 3x-weekly flights to Bogota will be able to connect to (AVI)'s domestic services while (AVI) passengers flying to Argentina will have access to domestic flights operated by (ARG) or Austral Lineas Aereas (ALA).
Avianca confirmed its $1 billion 10/10 orders 787 Dreamliners.
May 2007: Avianca (AVI) became an Airbus (EDS) customer for the first time with an order for 33 A319s/A320s and five A330-200s collectively valued at nearly $3 billion, plus options for 27 A319s/A320s and five A330-200s. (AVI) Chairman, German Efromovich said the order signals a "new era" for the Colombian carrier, touting the "unbeatable economics" of the airplanes as well as fleet commonality. Delivery dates and engine choices were not released. Avianca (AVI) and its (SAM) subsidiary currently operate 5 757-200s, 4 767-200s, 1 767-300, 15 MD-83s and 10 F 50s. It announced an order for 10 firm 787 Dreamliners plus 10 purchase rights 2 months ago.
June 2007: (IBM) signed an agreement with Avianca (AVI) to operate and manage the airline's information technology (IT) in a deal valued at $12 million. The Colombian carrier said outsourcing its (IT) will lower costs and enable it to focus on "core business operations."
Avianca (AVI) firmed options on 14 A320s and five A330-200s, bringing its total Airbus (EDS) orders to 57. (AVI) said it selected the advanced (CFM56-5B) to power its new fleet of 33 A319s/A320s in an engine order valued at $500 million. (AVI), a new (CFM) customer, will begin operating two leased (CFM56-5B)-powered A319s in early 2008. It is scheduled to take delivery of 31 purchased A319s/A320s between 2008 and 2012.
"The advanced technology of this engine, coupled with its industry-leading reliability and low cost of ownership, will help (AVI) fulfill its mission of earning customer loyalty through on time performance, flexibility and innovation," (CEO) Fabio Villegas said.
November 2007: Avianca (AVI)'s parent, Brazil's OceanAir (ONE) placed a firm order for 7 A330-200s, 14 A319s and 7 A320s, collectively valued at $2.65 billion. Deliveries will begin in 2009. OceanAir (ONE) is owned by Synergy Group, also parent of Colombia's Avianca (AVI). Synergy Chairman, German Efromovich told reporters in Sao Paulo, that he wants to grow OceanAir (ONE)'s domestic market share to 15% by 2010 from 2% currently, and compete more directly with Gol (GOT) and (TAM) (TPR), and believes the 21 A320 family airplanes will help achieve that goal. But the order also signals a commitment to international operations, with OceanAir (ONE) planning to deploy the A330s on currently operated routes to Los Angeles, Mexican destinations, and Luanda. It plans to use the airplanes to launch service to Europe as well, Efromovich said.
Airbus (EDS) said the order brings total firm orders for its airplanes in Latin America to 410.
December 2007: Amadeus reached agreement with Avianca (AVI) to provide a new-generation Information Technology (IT) platform, that integrates its Altea Customer Management Solution and e-commerce technology. The software is expected to streamline reservations, departures, inventory management and other logistics.
February 2008: Synergy Aerospace, the Colombia-based conglomerate that is the parent of Avianca (AVI), (SAM), Brazil's OceanAir (ONE) and Ecuador's (VIP), signed a Memo of Understanding (MOU) with Airbus (EDS) for the purchase of 10 A350 XWB-800s plus 10 options, (EDS) announced. Synergy and its subsidiaries already have 47 A320 family airplanes, and 10 A330-200s on order. This new order consolidates our fleet renewal and expansion program," President, German Efromovich said. Rolls-Royce (RRC) said the airplanes will begin delivering in 2015 and that the (Trent XWB) order was worth $880 million at list prices.
In addition to its Airbus (EDS) commitment, Avianca (AVI) has placed orders for 10 787s and is the 787's South American launch customer.
A320-214 (3408, HK-4549), delivery.
March 2008: Avianca (AVI) reached a $750 million, 15-year OnPoint Solutions deal with (GE) Aviation for Maintenance Repair & Overhaul (MRO) services on (CFM56-5B) engines powering 50 A319s/A320s. The work will be performed at (GE)'s Celma shop in Petropolis, Brazil.
Avianca (AVI) took delivery of its first A320-200 on lease from (CIT) Aerospace (TCI). It is the first of three airplanes (CIT) (TCI) will deliver to the Colombian carrier this year.
April 2008: Avianca (AVI) will purchase Tampa Cargo (TMP) and form a strategic alliance with Martinair (MTH), which currently holds a 57% share in the Colombian cargo airline. Avianca (AVI) also will acquire the remaining shares held by private local investors. "In Bogota, Colombia, the parties reached a principle agreement on the sale of 100% of the shares. The transaction is expected to be finalized in June 2008," Martinair (MTH) said.
Simultaneously, Martinair (MTH), Tampa (TMP), and Avianca (AVI) are working on an agreement to form a long-term "Strategic Cargo Alliance" to develop their cargo business jointly. The current cooperation between Martinair (MTH) and Tampa (TMP) with joint sales offices throughout the Americas will continue in the alliance. "The parties will carefully consider the competition law aspects of the envisaged alliance agreement and will seek any governmental approval required from the authorities regarding competition law," the Dutch carrier noted.
A319-115 (3467, HK-4553), (CIT) Group (TCI) leased.
May 2008: A319-112 (3518, HK-4552), (CIT) Group (TCI) leased.
July 2008: At the Farnborough Air Show, a deal was announced with Synergy Aerospace (AVI)/(ONE)/(SAM) for 10 A350-XWB-800s, completing a Memo of Understanding (MOU) signed in February. Synergy Aerospace is the parent of Avianca (AVI) and (SAM) in Colombia, and Oceanair (ONE) in Brazil.
September 2008: Avianca (AVI) took delivery of the first of 10 A330-243s - - SEE PHOTO - - "AVI-A330-SEP08". The airplanes are part of a May 2007 order that included 47 A320 family airplanes. The A330 will seat 280 and be powered by (Trent 772B)s. (AVI) will take delivery of one more A330-200, plus one A319 and one A320, before year end.
December 2008: 757-2K2 (26635, N635AV), ex-Oceanair (ONE), ex-(PR-ONF), delivery.
February 2009: 767-322ER (25287, N287AV), ex-Oceanair (ONE), ex-(PR-ONB), delivery.
April 2009: Avianca (AVI) reported a +$23 million profit in 2008, down from +$222.4 million in 2007, a drop it attributed partly to early pension payments. Revenue rose +25.3% to $1.9 billion on a +2.4% climb in passenger numbers to 9.8 million.
(BAE) Systems Asset Management will re-market 8 (AVI) MD-83s powered by (JT8D-219)s and 1 Pratt & Whitney (PW4060)-powered 767-300ER operated by (AVI).
A330-243 (1009, N968AV), delivery.
May 2009: A330-243 (1016, N969AV), delivery.
July 2009: Lufthansa Systems renewed its contract with Avianca (AVI) for the use of its ProfitLine/Price pricing solution for another 2 years.
2 A320-214s (3961, N961AV; 3980, N980AV), deliveries.
August 2009: Avianca (AVI) said it plans to sell up to COP500 billion/$246.5 million in bonds on the Colombian (BVC) on August 25 in order to finance the acquisition of new airplanes and pay down debt. Two years ago, (AVI) placed an order for 33 A320 family airplanes and five A330-200s plus options for 27 and five respectively. (AVI) said that its commitment with Airbus (EDS) now numbers 34 airplanes and it has 12 787s on order. Delivery of the (EDS) airplanes already has begun. (CFO), Gerardo Grajales told "Dow Jones," "Once the company has bonds in the capital market, it opens the possibility for a share issuance, but only if market conditions allow it." (AVI) said it operated 60 airplanes as of March 31 and posted a +$23 million profit last year.
3 A320-214s (3988, N988AV; 3992, N992AV; 4001, N401AV), deliveries.
September 2009: Calidris will provide its Booking Integrity solution to Avianca (AVI), its first South American airline customer.
2 A320-214s (4011, N411AV; 4026, N426AV), deliveries.
October 2009: Avianca (AVI) has confirmed it is merging with Grupo (TACA) (TAC). In a letter to employees, (AVI) (CEO) Fabio Villegas said (AVI)'s board after months of study has decided to pursue a "strategic merger" with Grupo (TACA) (TAC). But Villegas stressed that each company intends to maintain its own identity and will continue to operate independently. He said "the project offers big opportunities given the multitude of synergies" the two carriers will be able to pursue. Their combined network will also provide (AVI) and (TAC) customers with improved connections throughout the Americas and the world. The two carriers already code share on some routes.
"I am sure with the commitment of all employees we will create with (TAC) the most important airline leader in Latin America," Villegas said. He called the deal with (TAC) "of great significance for our company and the Latin American aviation industry in general." Villegas said combined, the carriers have an "optimistic future" which is sure to be "recognized nationally and internationally."
(LAN) Airlines is now the biggest airline group in Latin America, with passenger airlines in Chile, Argentina, Ecuador, and Peru, plus cargo airlines in Brazil, Colombia, Mexico, and the USA. Publicly-traded (LAN) also has been looking at establishing new passenger airlines in Colombia and Brazil, perhaps through a merger or acquisition.
Grupo Taca (TAC) includes airlines in nearly every Central American country as well as in Peru. (TAC), which is privately owned, also has a stake in Mexican low-cost carrier (LCC) Volaris (VLS).
(AVI) is predominately owned by Brazil's Synergy Group, which also owns Brazilian carrier OceanAir (ONE) and Ecuadorean regional carrier, (VIP). It is unclear if the (AVI)- (TAC) tie-up will include these smaller carriers but (AVI) already last year took over the management of OceanAir (ONE). (AVI) last year also acquired Colombian cargo carrier Tampa (TMP).
Once the transaction is complete, (TAC) (CEO) & Chairman, Roberto Kriete will serve as Chairman of the new group’s board of directors and (AVI) (CEO) Fabio Villegas plans to serve as (CEO). Other members of the new company’s senior management team include current (TAC) (COO) Estuardo Ortiz who will assume the same role upon the company’s formation, and (AVI) (CFO) Gerardo Grajales, who also assumes the same role once the merger is complete.
(AVI) is roughly double the size of (TAC) on a revenue basis with the former generating about $2 billion in annual revenues and the latter about $1 billion. (LAN) as a group last year generated $4.5 billion in revenues.
2 A320-214s (4046, N446AV; 4051, N451AV), deliveries.
November 2009: The recent merger of Avianca (AVI) and (Taca) International (TAC) has now acquired AeroGal (ERG). (ERG) already had equity links to (AVI)'s controlling shareholder, the Synergy Group.
(ERG) has been operating as a relatively small airline, focusing mostly on domestic flights including those to the Galapagos Islands made famous by Charles Darwin. It also serves Bogota and Miami.
READ ATTACHED "AIRLINE BUSINESS" ARTICLE - - "AVI-TAC-MERGER-2009-11."
A320-214 (4100, HK-4659), delivery.
December 2009: Aircastle announced the placement of a second A330-200 with Avianca (AVI). The airplane seats 30 passengers in business class (C) and 222 in economy (Y). Debt financing was arranged and provided by Calyon and supported by a guarantee from Coface, Aircastle said.
A330-243 (1073, N973AV), delivery.
January 2010: A320-214 (4167, N416AV) delivery.
February 2010: Grupo (TACA) (TAC) and Avianca (AVI) announced the finalization of their merger agreement and the forming of their joint holding company, to be called "Avianca-(TACA) Ltd." It will be domiciled in the Bahamas and held 67% by Avianca (AVI) parent, Synergy Aerospace Corporation and 33% by (TACA) (TAC) parent, Kingsland Holding. "The joint venture process is to be made in phases, with the main purpose of innovating for the benefit of markets and travelers, moving progressively into a strategic integration that allows strengthening the competitive position of the airlines in Latin America, with a common vision," the company said. The merged airline group operates a combined fleet of 129 airplanes.
Sky Holding Company of San Francisco delivered one A320-214 (4404) to Avianca (AVI) as part of a sale/leaseback transaction. It is (AVI)'s 13th A320.
March 2010: Avianca (AVI), which finalized its merger with Grupo (TACA) (TAC) last month, plans to continue growing with the acquisition of Aerogal (ERG), (CEO), Fabio Villegas said. Speaking to journalists in the Ecuadoran capital, he said Avianca (AVI) parent, Synergy Aerospace intends to invest $7.2 million on an 80% stake in Aerogal (ERG) while (TACA) (TAC) parent, Kingsland Holding will acquire the remaining 20%, "Dow Jones" reported. Government approval is pending. Villegas said (ERG) will take delivery of three new A320s in the second half of this year, increasing its overall fleet to 15 airplanes. Poder 360 reported that the sale could be completed by June and that (ERG) Chairwoman Gabriela Sommerfield said (ERG) will maintain its brand.
Renames "OceanAir" to "Avianca Brazil" (ONE).
Avianca (AVI) said it posted a 2009 net profit of +COP19 billion/+$9.9 million, down -53.7% from the +COP41 billion reported in 2008. Passenger numbers rose +4.5% to 6.9 million.
A319-115 (4200, N422AV), and A320-214 (4175, N417AV), delivery. 5 MD-83s (49942, EI-CBS; 49947, EI-CCD; 49948, EI-CDY; 53122, EI-CEP; 53123, EI-CEQ), bought from (GECAS) (GEF).
SEE PHOTO - - "AVI A320 2010-03" WITH "90 YEAR ANNIVERSARY" MARKINGS ON UPPER FUSELAGE.
April 2010: Avianca (AVI) will launch 2x-weekly, Medellin - Madrid service July 3 aboard an A330.
May 2010: 2 A320-214s (4281, N281AV; 4284, N284AV), deliveries.
July 2010: A319-115 (4336, PR-AVD), and 2 A320-214's (4345, N345AV; 4381, N481AV), deliveries.
August 2010: A320-214 (4395, N481AV), ex-(D-AVVK) delivery.
November 2010: The Star Alliance (SAL) took yet another step in its dynamic expansion by announcing it has officially invited Avianca (AVI) - (TACA) (TAC) and Copa Airlines (COP) to join the grouping. “The addition of these two quality airline groups concludes a strategic process which increases the alliance’s footprint in the vibrant, growing economies of Latin America,” (SAL) (CEO) Jaan Albrecht said. The two airline groups will add +46 new destinations and five new hubs in Latin America to what Albrecht called “Star (SAL)’s worldwide web.”
Copa Airlines (COP) and Copa Airlines Colombia (REU), formerly Aero Republica, operate hubs in Panama City and Bogota and the Avianca (AVI) - (TACA) (TAC) group operates hubs in Bogota, San Salvador, Lima and San Jose (Costa Rica).
Albrecht said that the inclusion of (COP) and (AVI) - (TAC) should not infer that the (SAL) alliance is anticipating Latin American member (TAM) Airlines (TPR)’s departure from the group but rather as the culmination of a strategic process to extend (SAL)’s reach in the region. (TPR) joined in May but in August announced it reached a merger agreement in principle with Oneworld (ONW) alliance member (LAN) Airlines, opening the possibility for the new merged entity to move to the (SAL) or to Oneworld (ONW). “Our clients told us that we had a white spot in our coverage, [namely] in Central America, the Caribbean and the northern and western regions of South America. (COP) and (AVI) - (TAC)’s networks are complementary to (TAM)’s (TPR),” Albrecht noted. He recognized that the pending merger of (TPR) and (LAN) does create “new challenges” and that it is the first time there is a cross-alliance merger in Latin America. But, he stressed, “We are aggressively looking forward to their discussions and we will make the best proposal.” He also noted that the wooing of (COP) started over a year ago with the addition of Continental Airlines (CAL), which subsequently merged with United Airlines (UAL). (COP) left the SkyTeam (STM) alliance together with its partner (CAL) in October last year. The “new” United (UAL)/(CAL) will mentor (COP)’s entry process and Lufthansa (DLH) will support (AVI) - (TAC). Both groups said they anticipate they will become full members in 18 months.
“(COP)’s membership in the Star (SAL) Alliance will enhance our global reach as we implement strong partnerships with its 27 carriers and link Latin America’s most efficient hub, our Hub of the Americas in Panama City, to (SAL)´s vast global network,” said (COP) (CEO), Pedro Heilbron. (COP) and (REU) serve 52 destinations in 25 countries aboard 34 737NGs and 26 E190ARs.
For (AVI) - (TAC) (CEO), Fabio Villegas, the group’s joining of the Star (SAL) Alliance is “a determining factor for our competitive strategy that will enable us to leap forward in terms of the scope and scale of the benefits provided to our passengers.” (AVI) - (TAC), which consolidated several smaller Latin American carriers, agreed to a strategic merger in October 2009, creating a combined network serving some 128 destinations in the Americas and Europe. The group operates a fleet of 118 airplanes and expects to carry more than >17.9 million passengers this year. Revenue is over >$3 billion. (TAC)’s initial request for (SAL) membership dates back to 2008.
(BAE) Systems Asset Management arranged the sale of five MD-83s on behalf of Avianca (AVI), as part of an exclusive remarketing mandate for eight. Four of the airplanes have been sold to Kansas City-based Jet Midwest Group of Missouri and the remaining airplane has been sold to Sierra American Corporation, the leasing affiliate company for Ameristar Air Cargo (CGG).
The remaining three airplanes under the original mandate have remained in service with Avianca (AVI), but will be released for imminent sale with delivery available in the first half of 2011.
December 2010: A320-214 (4547, HC-CJV), leased to AeroGal (ERG).
February 2011: Barfield won a 10-year contract from Avianca (AVI) - (TACA) (TAC) to provide full component support for the A320 fleet operated by the group’s four airlines, Avianca (AVI), (TACA) (TAC), Aerogal (ERG), and Ocean Air (now Avianca Brazil) (ONE). Barfield’s Maintenance Repair & Overhaul (MRO) support includes an option to provide logistics in Miami as well as the supply of consumable items. As part of the agreement, Barfield, which is the USA subsidiary of Sabena Technics (SAB) committed to setting up specific repair capabilities in Bogota to better support Grupo Avianca-(TACA)’s airlines. The facility will also support other operators in South America.
Sabena Technics (SAB) (CEO) Christophe Bernardini called the contract a “milestone” for Barfield. “We are proud of the trust (AVI) - (TAC) has extended to our group and will do our utmost to ensure that our customer’s operations are near perfection,” he said.
(GECAS) (GEF) signed a purchase and leaseback transaction for two new A330-200s and four new A320s. The airplanes are part of AVIANCA (AVI) - (TACA) (TAC)’s existing order book with Airbus (EDS). Two of the A320s will be operated by (TACA) (TAC), the remainder will be operated by Avianca (AVI). Additionally, (GEF) has leased 10 A318s to Avianca (AVI).
March 2011: Avianca (TACA) Holding SA, the parent of Avianca (AVI) and (TACA) (TAC), commenced an initial public offering (IPO) on the Colombian Stock Market consisting of 100 million shares of non-voting preferred stock, priced at $2.70/COP5,000. The offering is expected to raise approximately $250 million after underwriter fees and discounts. The (IPO) will conclude April 15. Proceeds will be used for "corporate expansion plans of the holding company [and] subsidiaries," the company said.
Avianca (TACA) (CEO), Fabio Villegas Ramirez called the (IPO) "a very important step in the history of the corporation," which was created in February 2010.
May 2011: Avianca (TACA) Holding SA, the parent of Avianca (AVI) and (TACA) (TAC), announced it raised $279 million from its Initial Public Offering (IPO) and noted it became the first airline to allocate 100% of its (IPO) among frequent flyers and company employees. The new shares will begin trading on the Colombian Stock Exchange.
In a sale that took place between March 28 and April 15, the company received over >64,000 investment requests, equivalent to more than >$1.6 billion, or about six times the offered amount.
"The huge response that the Avianca (TACA) (IPO) elicited, is a strong signal of the credibility and recognition of thousands of individuals with a project that we have been jointly building over recent years," said Avianca (TACA) Executive President, Fabio Villegas Ramirez.
Avianca (AVI) will launch 4x-weekly, Bogota - Orlando service July 12 using an A319.
June 2011: Avianca(TACA) (AVI)/(TAC) signed a Memo of Understanding (MOU) for 51 A320 family airplanes, including 33 A320neos.
September 2011: Avianca (AVI), part of the airline group AviancaTaca Holdings, has ordered four A330-200F freighters. The new airplanes, to be operated by Avianca (AVI)’s cargo subsidiary, Tampa (TMP), will replace its cargo fleet and play a key role in expanding (AVI)’s international cargo business.
Avianca (AVI) purchased Tampa Cargo (TMP) in 2008.
The order makes (AVI) the first Latin American operator to receive the A330-200F. Avianca (TACA) and its subsidiaries already operate seven A330-200 passenger airplanes and 81 A320 family airplanes.
“We are confident that these new A330 freighters will bring us greater fuel efficiency, lower operating costs and improved environmental performance,” said Avianca Taca Holdings (CEO) & Avianca (AVI) President, Fabio Villegas.
The A330-200F can carry up to 70 tonnes of payload and has a maximum range of 4,000 nm. Eight A330-200Fs are now flying with four operators in the Middle East, Europe and Asia. To date, 61 freighter airplanes have been ordered by 10 customers.
October 2011: Avianca (TACA) is adding two key routes from its largest hub. Starting next month, it will connect Bogota to Rio de Janeiro with A330s and to La Paz in Bolivia with A319s. It already flies from Bogota to Sao Paulo.
A320-214 (4862, N862AV), ex-(F-WWBR), delivery.
November 2011: Avianca (AVI) will launch 4x-weekly, Washington Dulles - Bogota - La Paz A319 service on November 16.
December 2011: Avianca (AVI)/(TACA) (TAC) had +19% passengers through first 10 months of 2011.
January 2012: Avianca (TACA) (AVI)/(TAC) has firmed up an order for 33 A320neo and 18 A320 family airplanes. The order follows a previously announced memorandum of understanding (MOU) at the Paris Air Show in June. It is the largest order from a single airline in the region, according to Airbus (EDS).
The new airplanes will support (AVI)(TAC)’s expansion into new markets in Latin America, while keeping the airline’s fleet among the youngest in the region.
With the order, (AVI) has acquired 190 Airbus airplanes. (AVI) has 88 A320 family airplanes and eight A330s in service.
In 2011, (AVI) boarded 20.7 million passengers, a +17.8% increase over 2010. Domestic operations in Colombia, Peru, and Ecuador resulted in a +23.4% growth in traffic, up to 11.3 million. International traffic was up +11.7%, to 9.4 million passengers.
The group is on track to join the Star Alliance (SAL) in April.
A330-243 (1279, N279AV), ex-(F-WWYN), sold to Avalon and leased back.
March 2012: Bogota based, Avianca Taca Holding, parent of Avianca (AVI), (TACA) (TAC), Aerogal (ERG) and Tampa Cargo (TMP), reported 2011 net income of +$109 million, more than tripling a net profit of +$33 million in 2010.
The company did not provide many details, but it said full-year operating revenue rose +24.6% compared to 2010 to $3.8 billion. (EBITDAR) was $739 million, up +11.5% year-over-year.
Avianca Taca (AVI)/(TAC) said it has approved, pending shareholder approval, a profit distribution that will pay $24.1 million to holders of common and preferred stock.
(CEO) Fabio Villegas told the "Los Angeles Times" that Colombia's "economy has taken a quantitative leap in investment, investor confidence and in radically improved security conditions. All that new business translates into a lot more passengers."
Avianca (AVI) and (TACA) (TAC) have signed a code share agreement with Aeromexico (AMX) under which they will "explore opportunities that will allow the airlines to supplement their network of routes." The airlines are now working on final details; the code share operation between Avianca (AVI) and Aeromexico (AMX) is scheduled to begin in the first half of 2012. The code share between (TACA) (TAC) and Aeromexico (AMX) is scheduled to begin during the second half of the year.
April 2012: Avianca (AVI) will resume Cali - Medellin - New York A320 service May 19, bypassing its main hub at Bogota. Flights will be operated 3x-weekly in the low season, and daily between June 1 and September 16, and between December 3 and January 13, 2013.
(TACA) Peru (TNM) will add a first A330-200 (948, N948AC) to its fleet in November when the airplane will be transferred from sister carrier Avianca (AVI). It is not known yet on which routes the wide body is going to be deployed.
May 2012: Bogota based, Avianca (TACA) Holding (AVI)/(TAC), parent of Avianca (AVI, (TACA) (TAC), Aerogal (ERG) and Tampa Cargo (TMP), reported a first-quarter net profit of +$34.9 million, up +47.3% compared to the year-ago quarter.
Operating revenue climbed +22.7% to $1.02 billion.
(EBITDA) increased +18.9% to $96.1 million, while (EBITDA) increased +24.3% to $167.6 million.
Boarding passengers grew +16% to 5.5 million, while capacity (ASK)s increased +13.8%. The consolidated results comprise subsidiary airlines in Colombia, Peru and Ecuador. Total domestic boarding passengers increased +23.5% to 3.1 million, while international traffic increased +7.5% to 2.4 million.
(AVI)/(TAC) in January firmed up an order for 33 A320neos and 18 A320 family airplanes.
(CEO) Fabio Villegas Ramirez said the results reflect efforts “to improve our operating performance and competitiveness” and that the goal “is to continue executing our strategic plan with a clear vision of being the leading airline in Latin America.”
The group reported 2011 net income of +$109 million, more than tripling a net profit of +$33 million in 2010.
(AVI) will resume Cali - Medellin - New York A320 service May 19, bypassing its main hub at Bogota. Flights will be operated 3x-weekly in the low season and daily between June 1 and September 16 and between December 3 and January 13, 2013.
A319-115 (N519AV) delivery in Star (SAL) Alliance colors.
June 2012: Avianca (AVI) - (TACA) (TAC) and Copa Airlines (COP) (with subsidiary, Copa Columbia (REU)) became Star (SAL) Alliance members this month.
Star (SAL) Alliance (CEO) Mark Schwab said the addition of the new airlines “strengthens our presence in the rapidly growing Latin American market. Our customers now enjoy increased connectivity across the Americas by connecting through five new (SAL) Alliance hubs right in the middle of the American continent," he said.
The merger of Colombia’s Avianca (AVI) and El Salvador’s Grupo (TACA) (TAC) into Avianca (TACA) (AVI)/(TAC) has created higher than expected synergies.
Chairman, Roberto Kriete said at the Star (SAL) Alliance joining ceremony in Bogota that “60% to 70% of synergies” created by the merger have been implemented. “By the middle of next year, we will [have] completed our 100% target of synergies,” he said, noting the synergies “could be up to >30% more” than originally anticipated.
“Most of the big challenges [of] the merger [have been] completed. For example, the different cultures of the two companies are well harmonized,” he said.
Kriete expects Star (SAL) Alliance membership to create a global awareness of the (AVI)/(TAC) group brand. “We [are] thinking about extending our European services,” he said, possibly to Frankfurt or Paris. But the plan is on hold due to high fuel prices.
Kriete said the group will replace its 10 Fokker F 50s with either ATR or Bombardier (BMB) turboprops within the next year. Its five 767-200/300F freighters (operated by its subsidiary Tampa Cargo (TMP)) will be replaced by four A330-200Fs.
Avianca (AVI) expects delivery of its first 787 in April 2014. Three more should join the fleet later in the year, three in 2015, three in 2016, two in 2017 and three in 2019.
(AVI) operates a fleet of eight A330-200s, 25 A320s, 12 A319s, 10 A318s and 10 F 50s. (TACA) (TAC) has 18 A320s, 11 A319, five A321s and 12 E190s in its fleet.
Earlier this year, (AVI) firmed up an order for 33 A320neo and 18 A320 family airplanes, previously announced at the Paris Air Show.
Brazilian domestic traffic measured by (RPK)s grew +5.7% year-over-year in May, against a +5% growth in (ASK)s, according the National Civil Aviation Agency (ANCA). Industry load factor grew +0.7% point to 67.6% LF.
The (RPK)s and (ASK)s for May reached levels not seen since 2000, (ANCA) said.
Azul (AZL) achieved the highest individual load factor at 78% LF, closely followed by Avianca (AVI) with 75.9% LF. (AVI)’s (RPK)s grew +83%, followed by TRIP (TIB) at 66%. Market leader, (TAM) (TPR) faced a -7.9% decrease in (RPK)s, while second-ranked (GOL) (GOT) posted a +0.85% growth, each keeping a 38.7% and a 33.8% market share, respectively. (AVI) also led the way in market share growth, up +73.2%, to a +5.1% market share, followed by TRIP (TIB) with a +53% increase to 4.7% market share.
The accumulated January - May results show the industry grew +6.5% in domestic (RPK)s in the period, while (ASK)s increased +9.3%. The two major carriers, (TAM) (TPR) and (GOL) (GOT), faced 8.2% and 8.7% market share decrease, respectively, in the five first months of this year.
(TAM) (TPR) and (GOL) (GOT), the only Brazilian carriers that operate international scheduled flights, in May posted 91.7% and 8.3% market share in this sector, respectively, the first achieving a +2.5% increase in (RPK)s and the second decreasing -9.6%. (TAM) (TPR) achieved 82.9% LF load factor, against (GOL) (GOT)’s 56.3% LF. Industry load factor was 79.8% LF, up +0.7% point, the best May result for Brazilian carriers operating in the international market, since the year 2000.
Brazilian airlines as a whole faced a -2.7% decrease in international (RPK)s in May, against a -3.4% decrease in (ASK)s.
July 2012: Rolls Royce (RRC) finalized an Avianca(TACA) (AVI)/(TAC) order for (Trent 700)s for 4 A330-200Fs in a deal that includes TotalCare support.
Synergy Aerospace, the parent of Avianca (AVI) placed a $1.9 billion firm order for 6 A330-200s and 3 A300-200Fs.
August 2012: Avianca(TACA) (AVI)/(TAC) Holdings reported a second-quarter net profit of +COP$8.8 billion/+$4.9 million, more than triple its year-ago profit.
The company said the second-quarter results “reflect the impact of adjustments in maintenance cost estimates and changes in the valuation methodology applied to frequent flyer miles.”
Second-quarter operating revenue was COP$1.8 trillion/$1 billion, up +12.9%.
(RPK)s grew +11.6%, while (ASK)s increased +9.6% as a result of the ongoing operating strategy of consolidating four main hubs respectively in Bogotá, Lima, San Salvador, and San José.
Five new routes and 19 new flights were added to the network in the period, while the company added one A319 and one A320 to the fleet. One 757 was removed from service. Load factor remained flat at 77.7% LF year-over-year.
Avianca (AVI) launched a new domestic Colombian route on 6 August when (AVI) connected its hub in the country capital Bogotá (BOG) with Yopal (EYP), the capital of the oil rich Casanare Department in the central-eastern part of the country. Flights operate 2x-daily with 50-seat Fokker 50 airplanes. SATENA (STN) used to operate the route until March this year, but the only competition now facing Avianca (AVI) is (LAN)’s 18x-weekly.
First-half net income was +COP$71.6 billion and operating income grew +19.3% to +COP$126.2 billion.
Chairman, Roberto Kriete said in June that the merger of Colombia’s Avianca (AVI) and El Salvador’s Grupo (TACA) (TAC) into Avianca(TACA) (AVI)/(TAC) created higher-than-expected synergies and by the middle of next year, it will complete the 100% target of synergies.
(AVI) and (TAC) joined the Star (SAL) Alliance in June.
September 2012: Avianca (TACA) (AVI)/(TAC) has taken delivery of its 100th Airbus airplane, the 252-seat A330-200.
October 2012: The Avianca (TACA) group of airlines will unify all members under the single Avianca (AVI) brand name starting in the first half of 2013. Each member carrier will keep its own separate legal corporate status but will be authorized to do business under one brand name.
During the first stage, Avianca (AVI), Tampa Cargo (TMP) and the (TACA) (TAC) group of airlines ((TACA) International (TAC), Lacsa (LAC), (TACA) Peru (TPU) and Aviateca (AVT)) will adopt the single brand name in the 2013 first half. Aerogal (ERG) will join them in the second half.
Since the Avianca (AVI) and (TACA) group of airlines merged, it has implemented 45 new routes, increased (ASK)s by +37% and simplified its fleet by reducing it from 11 to four airplane family types. It also unified their respective frequent flyer programs into a single product, "LifeMiles" and joined the Star Alliance (SAL).
(CEO) Fabio Villegas Ramirez said, that in addition to the upgrade in infrastructure and technology and network expansion, the integrated member airlines have “simultaneously registered highly satisfactory results in domestic and international markets, as well as impressive customer satisfaction figures, which has facilitated growth and positive financial results.”
A330-243 (1279, N279AV) transferred to (TACA) Peru (TNM).
November 2012: AviancaTaca Holdings has posted a third-quarter net profit of +COP$101 billion/+$55.6 million, up +14.8% year-over-year, on revenues of COP$209.2 billion, up +3.5%. Operating profit was down -12% to +COP$209.2 billion, mainly due to fuel price hikes of +9.9%.
Capacity measured in (ASK)s increased +10.3% and is credited to a growth strategy and consolidation of the company’s four main hubs in Bogotá (BOG), Lima (LIM), San José and El Salvador. (RPK)s rose +9.1%, while passenger load factors fell -1.1% points to 81.8% LF.
Passenger numbers increased +13.6% to 6.1 million. Revenue increases were attributed to a +1.4% growth in ticket sales.
The group introduced five new city-pair services in the period, including (BOG) - Yopal, San Salvador (ZSA) - Cali (CLO), (ZSA) - Guayaquil, (LIM) - (CLO), and (LIM) - Medellín (MDE). Frequencies were also increased on several international routes, including (BOG) - Madrid, (LIM) - Santa Cruz de la Sierra, (LIM) - Caracas, (BOG) - (LIM).
Domestically in Colombia, 28 new weekly frequencies were added to (MDE) - Cartagena (CTG), 7 to (MDE) - Cúcuta, 10 to (BOG) - (MDE), 7 to (MDE) - (CLO), and 5 to (CLO) - (CTG).
The group phased out one A319 in the period and added one A330, two A319s and two A320s to its fleet.
Starting from 2013, the group brand name will be unified to "Avianca."
Avianca Airlines (AVI) has ordered three additional 787s valued at $620 million at list prices. The order, announced Tat the Latin American & Caribbean Air Transport Association (ALTA) Airline Leaders Forum in Panama City, brings the total number of 787s Avianca (AVI) has on order to 15.
(AVI) originally placed an order for 10 787s in 2007, becoming the first South American carrier to order the airplane.
December 2012: Star (SAL) Alliance member AviancaTaca Airlines (AVI)/(TAC) is ready to fill the gap in Brazil if (TAM) Airlines (TPR) leaves the (SAL) alliance, as expected. Brazilian-based (TAM) (TPR) merged with Oneworld (ONW) Alliance member (LAN) Airlines earlier this year, creating the (LATAM) Group.
(AVI)/(TAC) (CEO), Fabio Villegas Ramirez said (AVI)/(TAC) is working to tap more into Brazil, which he considers an “important market. It is difficult to operate there, but it is a market you have to be in.”
A top Star (SAL) Alliance executive said that (TAM) Airlines (TPR) will have to pay a $25 million fee to leave the (SAL) alliance.
The (AVI)/(TAC) group of airlines, which was formed from the merger of Colombia’s Avianca (AVI) and El Salvador’s Grupo (TACA) (TAC) into Avianca(TACA) (AVI)/(TAC), said it will unify all members under the single "Avianca" brand “by the second part of this year.”
Ramirez said the (AVI)/(TAC), which is expecting a +15% passenger year-over-year growth, has “the opportunity to be in one of the top markets in Latin America.” He said (AVI)/(TAC) will “increase frequencies and add new destinations” to counter the effects of the economic weakness of Europe and the USA. “You always have issues here [in Latin America], like increasing fuel prices, but we will be conservative to maintain our profitability.”
The (AVI)/(TAC) group operates 150 airplanes. “We have 51 Airbus (EDS) airplanes and 15 Boeing (TBC) 787s on order and are planning to add new destinations in Europe, like London or Frankfurt,” Ramirez said.
The Avianca(TACA) group of airlines has placed a firm order for 15 ATR 72-600s, plus 15 options, in an order valued at $700 million. Delivery is scheduled to begin in June 2013.
The new airplanes, which will serve regional routes in Colombia and Central America, will replace Fokker F 50s and ATR 42s.
Avianca Airlines (AVI) will operate the new airplanes to destinations including Barrancabermeja, Florence, Manizales, Neiva, Pasto, Popayán, Tumaco and Yopal. (TACA) (TAC) will operate the ATRs into Guatemala City, Flores, Tegucigalpa, Roatán, San Pedro Sula, San Salvador, Managua, San José, and Liberia.
Avianca (TACA) was formed by the merger of Colombia’s Avianca Airlines (AVI) and El Salvador-based Grupo (TACA) under a single holding company.
The Avianca (TACA) group of airlines will unify all members under the single "Avianca" brand name starting in the first half of 2013. Each member carrier will keep its own separate legal corporate status but will be authorized to do business under one brand name.
February 2013: (TACA) International Airlines ((IATA) Code: TA, based at San Salvador Cuscatlán International (SAL)) (TAC) as well as sister carrier (TACA) Costa Rica ((IATA) Code: LR, based at San José Juan Santamaría International (SJO)), (LAC), (TACA) Perú ((IATA) Code: TO, based at Lima Jorge Chávez International (LIM)) (TNM) and TAMPA Cargo ((IATA) Code: QT, based at Medellín José Maria Córdova International (MDE)) (TMP) are all expected to be rebranded as "Avianca" in June according to statements made by Avianca Colombia ((IATA) Code: AV, based at Bogotá El Nuevo Dorado International (BOG)) (AVI) said Chief Operating Officer (COO), Estuardo Ortiz. The rebranding of AeroGal ((IATA) Code: 2K, based at Quito Marsical Sucre (UIO)) (ERG) has been postponed until the end of the year or early 2014.
March 2013: Avianca (TACA) (AVI)/(TAC) has reported a 2012 net profit of +COP$351.6 billion/$198.6 million, up +160.7% year-over-year, in unaudited results.
Operating revenue for 2012 was up +13.7% to COP$7.6 trillion and operating profit was +COP$506.8 billion.
Both, (ASK)s and (RPK)s increased +10.3%, as Avianca (AVI), (TACA) (TAC) and their subsidiaries reached a system passenger load factor of 79.6% LF. (AVI)/(TAC) said the results were mainly due to fleet enhancement and route network and improvement in the Bogotá, Lima, San Salvador and San José (Costa Rica) hubs.
In 2012, the group incorporated into its fleet, two A330s, four A319s, seven A320s and one A330F. In December 2012, (AVI)/(TAC) ordered 15 ATR 72-600s, plus 15 options.
Avianca (AVI) will add four weekly (from 10x-weekly) Bogotá - Madrid beginning May 16.
Latin America’s third busiest airport in 2012, Bogotá El Dorado Airport is Colombia’s main domestic and international gateway. The airport, which handled 22.5 million passengers in 2012, is jointly operated by a consortium of Colombian construction and engineering firms and the Swiss Flughafen Zürich AG (OPAIN), and serves one of the most dynamic economies in the region. According to data provided by International Monetary Fund (IMF), the country’s Gross Domestic Product (GDP) was growing at an average annual rate of +4% since 2003 and, while 2009 was the weakest year for the country’s growth, the 2% (GDP) increase then was considerably better than the average declines of -6% and -1.6% noted respectively for the world and the region. This positive trend is set to continue to positively impact the development of commercial aviation, as internal demand remains robust and the country continues to step up as the region’s favorite for business.
Examination of data provided by Aeronáutica Civil de Colombia, shows that passenger traffic at Bogotá El Dorado has virtually doubled between 2006 and 2012. A total of 11.8 million passengers (8 million domestic and 3.8 million international) used the airport in 2006, a number that increased to 22.5 million last year. Notably, even in the worst years of recession, traffic at the airport continued to grow, and in 2009, an overall increase of +11% was noted, followed by an impressive +27% leap a year later.
The worsening of economic climate was felt in the international sector however, which (after achieving +13.8% growth in 2007) slowed its growth down by more than a half in the following year +(6.8%), and even noted a slight decline in 2009 (-0.6%). This can be attributed to the relative importance of the USA in Bogotá’s international traffic, however, the loss was more than recovered in 2010 (+7.8% growth). Unlike international traffic, domestic passenger movements only achieved double-digit growth in 2009 (+16.7%), only to step it up to +35.7% a year later. In the last two years, the trend reversed, and in 2012, international traffic was up by +14.6%, while domestic grew +9.6%.
According to data published by the Aeronáutica Civil de Colombia, domestic traffic from Bogotá accounted for over >70% of the total in 2012. Examination of the airlines’ schedules for April 2013 shows that the country’s domestic market is dominated by the country’s flag carrier, Avianca (AVI), which has 68% of weekly seats and 64% of frequencies in the market, followed by (LAN) (respectively 21% and 20%) and Copa Airlines (COP) (7% and 8%). The residual capacity is taken up by SATENA, the state-owned operator of turbo-props and regional jets, EasyFly, and Viva Colombia, the country’s first true low-cost carrier (LCC). SEE ATTACHED - - "AVI-2013-03 - BOGOTA DOMESTIC ROUTES."
Four domestic routes were used by more than a million passengers (two-way) in 2012 (Medellín, Cali, Cartagena, and Barranquilla), accounting for 38% of total domestic traffic from Bogotá. The largest of these destinations was Colombia’s largest regional center, Medellín. 2.3 million passengers travelled on this route, making up 13% of the domestic market from the capital airport. April 2013 airline schedules largely reflect this pattern, with the air bridge between Bogotá and Medellín accounting for a fifth of domestic weekly seat capacity offered from El Dorado.
Just like in the domestic segment, Avianca (AVI) also dominates the international market from Bogotá, which serves as its main hub. In April 2013, (AVI) has almost a half of all weekly seats and frequencies offered on international routes at the airport; its partner airline, Taca (TAC), adds another +5% to these figures. Combined, the two airlines offer 299 weekly flights to 26 destinations, the majority of which are in the Americas. The only two cities offered by Avianca (AVI) outside of the continent are Madrid and Barcelona, served respectively with 10 and 4x-weekly frequencies. SEE ATTACHED - - "AVI-2013-03 - BOGOTA TOP 10 INTERNATIONAL ROUTES."
Panama City, the hub airport of Avianca (AVI)-Taca (TAC)’s Star Alliance (SAL) partner, Copa (COP), is the busiest international route from Bogotá. Two thirds of the 8,400 weekly seats and 69 weekly frequencies on the route are offered by Copa (COP), with Avianca (AVI) providing the remaining services. Unsurprisingly, Miami, Florida, is the largest destination in the USA, in terms of weekly seat capacity, and is offered 3x-daily by Avianca (AVI), 2x-daily by American Airlines (AAL) (which has its Latin American hub here) and daily by (LAN). Only 500 less weekly seats are offered on this route than to Panama City. Notably, another destination in Florida, Fort Lauderdale, is the only one of the top 12 list dominated by USA low-cost carriers (LCC)s. While (AVI) offers daily flights on the route, it is matched in terms of frequencies by both JetBlue Airways (JBL) and Spirit Airlines (SPR) (due to different onboard product, the latter markets slightly more seats on the route: 1,246 vs. 1,050 for each Avianca (AVI) and JetBlue (JBL)).
October 2012 saw the official launch of the new international terminal at Bogotá El Dorado Airport, which constitutes the first part of a major redevelopment project due to be finalized in 2014, when the new domestic facility and Air Traffic Control (ATC) tower are commissioned. At 104,000 square meters, the international terminal doubled the size of the airport’s existing terminal facilities, but the airport’s capacity, following the completion of redesign works next year, will be capped at 20 million passengers per annum. In late January 2013, Fabio Villegas Ramírez, President of Avianca (AVI), the airport’s main airline customer, said: “While the improvement on what we had previously is infinite, the redesign was based on estimated 14 million annual passengers in 2014. Last year saw the airport handle +50% more traffic.”
Panama-based, Avianca(Taca) (AVI)/(TAC) Holdings announced that it has selected the advanced technology (LEAP-1A) engines to power 33 A320neo family airplanes, in addition to ordering (CFM56-5B) engines to power an additional 18 A320ceo family airplanes. (AVI)/(TAC) has also opted for a comprehensive engine maintenance service package. The agreement has a total combined value of $2.7 billion at list price.
Avianca/(Taca) (AVI)/(TAC) also signed a 15-year, Rate per Flight Hour (RPFH)) agreement to support both the new (CFM56) and (LEAP) engine fleets under which (CFM) will guarantee maintenance costs on a dollar per engine flight hour basis.
Deliveries of the A320ceos are scheduled between 2014 and 2016, while the A320neos will be delivered in the 2017 to 2019 timeframe. The airplanes were originally announced in June 2011.
Avianca (AVI) has been a (CFM) customer since 2006 and currently operates a fleet of 66 (CFM56-5B)-powered A320 family airplanes. The airline merged with (TACA) (TAC) in 2010 to create one of the largest carriers in Latin America, transporting more than >30 million passengers in 2012. The new airplanes will be used for both fleet renewal and growth.
(LEAP) and (CFM56-5B) engines are products of (CFM) International, a 50/50 joint company between Snecma (Safran) and (GEC). (CFM), the world’s leading supplier of commercial airplane engines, has delivered nearly 25,000 engines to date. The (LEAP-1A) has been selected to power more than >50% of all A320neo orders to date for which an engine selection has been announced. The (CFM56-5B) engine powers every model of the A320 family and has been chosen to power nearly 60% of all A320 airplanes in service or on order.
April 2013: Avianca (AVI) offers 3x-weekly, Bogotá - San Juan, Puerto Rico A319 service from July 17.
May 2013: Bogota-based, Avianca Taca Holdings reported a first-quarter net income of +$75.3 million, more than doubled from +$34.9 million in the year-ago.
Avianca Taca Holdings, created by the 2009 combination of Colombia’s Avianca (AVI) and El Salvador-based Grupo (TACA) (TAC), has formally rebranded itself Avianca Holdings and intends to integrate TACA (TAC) and its other airline subsidiaries under a single “Avianca” brand.
Other carriers in the group to move under the Avianca brand include Tampa Cargo (TMP), (TACA) Peru (TNM), Costa Rica-based Lacsa (LAC) and Ecuador-based Aerogal (ERG).
Avianca Holdings (CEO), Fabio Villegas said that “the single commercial brand represents a very important milestone.” The combined fleet of Avianca (AVI) and (TACA) (TAC) stands at 151 airplanes. “Currently, the ‘new Avianca’ (AVI) covers 100 destinations in 25 countries in the Americas and Europe through 5,100 weekly flights,” the company stated.
Avianca (AVI) said the new branding will “gradually” roll out, with its airplane fleet and other facilities moving toward a single visual brand. SEE PHOTO - - "AVI-2013-05 UNIFIED AVIANCA LIVERY A320."
June 2013: Avianca (AVI) will begin 4x-weekly, Bogotá - Cancún, A319 service on July 15.
Avianca (AVI)'s first delivery of 15/15 orders ATR 72-600s (SEE PHOTO - - "AVI-ATR 72-600 - 2013-06"). It will be used in (AVI)'s regional fleet in Colombia and Central America, by gradually replacing the Fokker F 50s and ATR42s currently in service. This first ATR 72-600 will serve destinations including Barrancabermeja, Florencia, Manizales, Neiva, Pasto, Popayan, Turnaco and Yopal in Colombia. Later, other ATR 72-600s will be used to connect Guatemala City and Flores, Tegucigalpa, Roatan, and San Pedro Sula, San Salvador and Managua, as well as San Jose and Liberia.
July 2013: Avianca (AVI), the former flag carrier of Colombia, now merged with Taca Airlines (TAC), inaugurated services on the 2,300 km route from its Bogota (BOG) hub to Cancun (CUN) in the Yucatán peninsula, which it last operated in January 2001. Commencing on July 15, (AVI) offers 4x-weekly flights on the route, which it operates using A319s in competition with Copa Airlines (COP)’s service of the same frequency.
Avianca (AVI), which already serves Mexico City (MEX) with year-round 3x-daily flights from its Bogota hub, added seasonal services to the Mexican capital from Medellin (MDE), the country’s second largest city. Beginning on July 5, (AVI) offers 3x-weekly services on the 3,000 km route which it operates using A320s until August 31.
(AVI) inaugurated services on the 1,800 km route from its Bogota (BOG) base to San Juan (SJU) in Puerto Rico, a route it previously served until 2001. Beginning on July 17, (AVI) offers 3x-weekly flights to the Caribbean island, which it operates using A319s.
Located in the northeast of the Caribbean, and an unincorporated territory of the USA, like Guam in the Pacific and the US Virgin Islands (also in the Caribbean), Puerto Rico is the home for the region’s busiest airport: – San Juan Luis Muños Marín International. The airport serves the country’s capital and largest city, with the archipelago boasting a total population approaching four million.
The three largest airports are also Puerto Rico’s only international airports, and all are located on the main island. Along with the biggest, San Juan, are Aguadilla, the #2 airport on the north-western tip and Ponce on the southern coast. These airports control over 96% of all passenger traffic in Puerto Rico. Aguadilla has direct flights to New York Newark (United Airlines (UAL) – 5 weekly), Fort Lauderdale (Spirit Airlines (SPR) – 4), New York (JFK) (JetBlue Airways (JBL) – 14) and Orlando (JetBlue (JBL) – 7), while Ponce offers New York (JFK) (JetBlue (JBL) – 7) and Orlando (JetBlue (JBL) – 7). Many of the other commercial airports, like Vieques, Culebra and Mayaguez, serve other islands around the archipelago with links to the capital, as well as limited service to surrounding islands.
Over the last few years the country’s main airports have failed to recover the recent 2008 traffic high-spot, when the trio combined to breach the 10 million annual passenger barrier. Looking at 2013 data, it seems unlikely that this year will deliver this landmark traffic volume, as the airports have only grown by +1.2% in the first three months of 2013, driven largely by +1.8% growth at San Juan, as the other two smaller airports have registered traffic declines (Aguadilla -6.3%; Ponce -6.8%).
AirTran Airways (CQT)’s contraction in Puerto Rico (-70% in the last 12 months) comes as its parent carrier, Southwest Airlines (SWA) assumes control of many of its subsidiary’s routes. The 79 weekly frequencies operated by AirTran (CQT) last year were split across the five destinations of Atlanta (19 weekly), Baltimore/Washington (12), Fort Lauderdale (14), Orlando (25) and Tampa (9) have been reduced to 23 this year, as (CQT) now serves Atlanta (9) and Fort Lauderdale (14) only. Last August, (SWA) operated no flights to Puerto Rico. (SWA) now offers Baltimore/Washington (14 weekly), Orlando (16) and Tampa (7).
Unsurprisingly, 76% of all flights from Puerto Rico are destined for the USA. Putting this capacity aside, it is flights to the British Virgin Islands, around 150 km away, which dominate the archipelago’s flight schedules, with 133 weekly flights to Tortola (99) and Virgin Gorda (34).
Of the top 12 countries represented here, only three are from outside of the Caribbean, with Copa Airlines (COP)’ 18x-weekly service to Panama City leading the way. American Airlines (AAL) connects San Juan to Caracas in Venezuela with a daily operation, whereas Avianca (AVI) has launched this 3x-weekly A319 from Bogotá to San Juan, resumed after a 12-year break on the route. Condor (CDF)’s weekly flight to Frankfurt in Germany now represents the only flight to Europe, following British Airways (BAB)’s withdrawal from the market in April this year with the cancellation of its weekly London Gatwick service.
(TICOS) - Líneas Aéreas de Costa Rica (based at San José Juan Santamaría) (LAC) is the name of a new airline that has begun the process of certification and intends to take over the routes recently abandoned by (TACA) International Airlines (TAC) subsidary, (LACSA) Costa Rica ((IATA) Code: LR, based at San José Juan Santamaría) (LAC) after its complete merger with Avianca Colombia (AVI). According to Costa Rica's General Directorate of Civil Aviation (Dirección General de Aviación Civil - (DGAC)), a proposal outlining (LAC)'s plans has been submitted for consideration. (DGAC) sub-Director, Mr Alvaro Vargas, said "the new airline is in the process of preparing financial and feasibility studies, to operate three to five Airbus airplanes." Among the consequences on the Costa Ricans were the loss of 261 jobs as well as (TACA) (TAC)'s recent axing of direct flights from San José Juan Santamaría to Los Angeles International, New York (JFK), Havana International, Quito International and Guayaquil. According to Costa Rican press reports, the (DGAC) is now in the process of obtaining outside legal counsel to research and recommend sanctions against (TACA) (TAC).
Avianca Colombia (AVI) owner, Germán Efromovich, has reportedly applied for a EUR345million loan from Brazil's second largest state bank, Caixa Económica Federal, which the Brazilian press speculate could be used to acquire a stake in (TAP) Portugal. While Mr Efromovich confirmed the funding application to the Folha de Sao Paulo newspaper, he refused to comment on the deal which, if approved, would be used to cover (TAP)'s estimated EUR1billion debt and which Lisbon wants any potential buyer to assume. The report further claims that, with or without the loan, Mr Efromovich will push ahead with the bid and has already met with Portuguese government officials. However, to avoid being forced to take any deal offered to it, Lisbon is understood to want more than one bidder. JetBlue Airways (JBL) Founder and current Azul Linhas Aéreas Brasileiras (AZL) (CEO), David Neeleman, has also been rumored to be interested in acquiring a stake in (TAP), though he has vehemently denied all such reports.
October 2013: Avianca (AVI) has begun flights connecting San Salvador (SAL) to Chicago O’Hare (ORD) using its A319s. The 3,140 km sector will be operated four times weekly. This becomes the ninth USA airport to be served by Avianca (AVI) from San Salvador. There is no other carrier currently operating this route. In total, the capital of El Salvador is now connected to 12 different USA airports with non-stop flights.
Avianca (AVI) will introduce daily, Bogotá - Letícia A318 service. (AVI) begins 4x-weekly, El Salvador - Newark, A319 service, changing to daily service December 1.
Avianca (AVI) has selected Panasonic Avionics' eX1 In-flight Entertainment (IFE) for its 28 new A320s.
November 2013: Avianca Colombia (AVI) parent, Avianca Holdings raised USD 409 million this month by offering 27.2 million shares at USD15 in its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE). Fabio Villegas, (CEO) of (AVI), said funds raised would be put towards (AVI)'s fleet modernization and expansion plan which encompasses Airbus neo jets, 787s and ATR 72s. (AVI) operates 10 A318-100s, 11 A319-100s, 35 A320-200s, 10 A330-200s, 2 ATR 72-600s and 10 Fokker 50s right now.
Avianca (AVI) continued to increase its coverage in Central America, as it commenced operations to the region’s fourth busiest airport on November 1st. (AVI) now operates four tines weekly services on the 2,100 km route from its Bogota (BOG) hub to Guatemala City (GUA). A318s are deployed to operate the route, on which (AVI) is the lone operator. In Central America, (AVI) already offers 2x-daily flights to Panama City and weekly service to San Salvador.
Avianca (AVI) added New York Newark, New Jersey (EWR) as the second New York airport in its network. Beginning on November 8th, (AVI) offers four weekly services on the 3,400 km route from San Salvador (SAL). A320s are deployed on the route, which is operated by Taca Airlines (TAC) and will see its frequencies lifted to daily from December 1st. United Airlines (UAL) provides competition in the market from San Salvador to Newark, which it serves with a weekly schedule. Avianca (AVI) already operates to another New York airport, (JFK), from Bogota (14x-weekly flights) and Medellin (four), as well as from San Salvador (13) and San Pedro Sula (two).
Avianca (AVI) has launched a new domestic route on November 15th between Bogota (BOG) and Leticia (LET), in the south-east corner of Colombia. (AVI) will serve the 1,090 km sector with daily A318 flights, and will be competing head-to-head with Copa Airlines Colombia (REU) and (LAN) Colombia (AIR), who also both operate daily flights. In addition, on November 16th, Avianca (AVI) took over from LACSA (LAC) as the operator between San Jose (SJO) in Costa Rica, and Miami (MIA). The 1,800 km route will be served daily by (AVI)’s A319s (replacing (LACSA) (LAC)’s smaller E190s) and will face competition from American Airlines (AAL), who currently operate 24 weekly flights.
(AVI) serves 19 countries, 51 destinations and 82 routes.
December 2013: Star (SAL) Alliance executives agreed to extend Avianca (AVI)’s membership to include Avianca Brazil (ONE).
January 2014: Avianca Holdings reported an increase in air traffic of +7.3% and an increase in passengers carried for 2013 by +6.6% to 24,625,062, compared to the previous year.
Between January and December 2013, Avianca (AVI)'s subsidiary airlines, Colombia's Avianca (AVI) and El Salvador's (TACA) (TAC) carried 14,292,302 passengers within its domestic markets of Colombia, Peru and Ecuador, a +7.8% increase compared to 2012.
During the holiday travel period from December 13 through January 12, passengers carried coasted to a record 1.5 million.
Brazil’s National Civil Aviation Agency (ANAC) has approved +1,973 extra flights between June 6 and July 20 to cover the expected huge increase in demand during the (FIFA) World Cup in Brazil.
The flights will be operated by Brazil’s four major airlines ((TAM) (TPR), (GOL) (GOT), Azul (AZL) and Avianca (AVI)) and include operations into 25 airports in the 12 cities staging matches or up to 200 km from the stadiums. Most are domestic flights.
City pairs to get the greatest number of extra flights are São Paulo - Brasília (288), Campinas/Viracopos - Rio de Janeiro/Santos Dumont (284), São Paulo - Fortaleza (205) and São Paulo - Recife (59). The Rio de Janeiro - Buenos Aires international city pair will get 262 extra flights.
(ANAC) Director President, Marcelo Guaranys told local media it is up to airlines to activate the approved extra flights. A spokesperson for the Brazilian Association of Airlines said the carriers must gradually reorganize their respective route networks and adjust the new flights accordingly, beginning in the next few weeks, and open some of the flights for sale.
Guaranys said the (ANAC) is closely monitoring the airlines to avoid abusive increases in air fares, as there have already been reports of increases in domestic fares of up to +10 times, in some cases. In response to media criticism, Azul (AZL) announced earlier this month it is limiting fares during the period to a maximum of R$999/$422 per one-way ticket, including connecting flights. (CEO) David Neeleman told local media this represents a R$20 million cost for the airline, which expects to face a -20% decrease in business traffic from June 12 to July 13. A few days later, Avianca (AVI) followed suit. (TAM)/(TPR) and (GOL)/(GOT) have not announced any specific measures so far.
February 2014: Avianca (AVI) resumes 4x-weekly, Bogota - London (LHR) A330 service in July.
Avianca (AVI) said it has “taken the preventive decision to temporarily ground” its fleet of four Fokker F 50 turboprops.
(AVI) cited “a malfunction on one of the engines of a Fokker F 50 covering the Cali - Tumaco route” discovered prior to takeoff on January 28. (AVI) said that it has performed “all the proper inspections and [gone] through all the safety procedures,” and decided it was prudent to ground the F 50s. “This preemptive security measure will allow (AVI) and the engine manufacturer Pratt & Whitney (PRW) to establish the causes of the event, and implement the necessary corrective measures that will guarantee the airplane’s operational reliability,” (AVI) said.
(AVI) also operates four ATR 72-600 turboprops on regional routes and has 11 more ATR 72-600s on order. It plans to eventually replace all of its F 50s with the ATR airplanes on its regional network.
The grounding of the four F 50s “will have a temporary effect on the capacity offered,” (AVI) said, adding that (ASK)s will be reduced by -0.3%, while the F-50s are not in service. But “to minimize the potential impact,” some of the routes operated by the F 50s will be served by ATR 72-600s and A320s will be used to operate some regional services during the grounding, (AVI) said.
(AVI) has selected ATR to maintain and repair its new fleet of ATR 72-600 airplanes for a period of 10 years. As reported at the time in late 2012, Avianca (AVI) signed a purchase agreement with ATR for a fleet of 15 ATR 72-600 airplanes, with the option for 15 additional airplanes of the same type.
The Global Maintenance Agreement (GMA) covers the supply of spare parts, as well as repair and maintenance services for the new fleet of ATR airplanes currently being incorporated into the airline. ATR will handle the complete management of Line Replaceable Units (LRU)s, the maintenance and availability of airplane pieces, the advanced exchange pool of services, plus an inventory of spare parts at ATR’s logistics center in Miami.
ATR’s Senior VP Product Support & Services, Lilian Braylé stated: “We are proud that Avianca (AVI) has placed its confidence in our expertise as an airplane manufacturer to handle the logistic support facilities worldwide with a dedicated and efficient service. The proven success of (ATR)’s maintenance services to our operators enables us to set up everything necessary to further improve the performance and operational efficiency of (AVI).”
(AVI)’s President Fabio Villegas noted: “We are pleased to have signed this agreement with ATR. Their background and experience as a manufacturer and maintenance service provider allows us to predict that this will be a solid partnership, with the results being reflected in the performance of our fleet and regional service quality.”
ATR currently has nearly 100 airplanes operating in the region operated by a dozen Latin American customers, which are covered with the Global Maintenance Agreement. These numbers continue to grow as the ATR turboprop fleet in Latin America continues to expand.
A330-243 (1508, N508AV - - SEE PHOTO - - "AVI-A330-243-2014-02"), delivery with new livery.
March 2014: Avianca Holdings reported a 2013 operating profit of +$384.9 million, up +37% year-over-year, on a +8% rise in revenue to $4.6 billion.
Avianca Holdings, which is in the process of unifying under a single brand, controls Colombia’s Avianca (AVI), San Salvador-based (TACA) (TAC), Costa Rica’s LACSA (LAC), (Taca) Peru (TNM), Guatemala’s Aviataca (AVT), Ecuador’s Aerogal (ERG), Brazil’s OceanAir (ONE), Taca de Honduras (THD), and Colombian freight carrier Avianca Cargo (formerly Tampa Cargo) (TMP).
The company said its 2013 earnings before interest, taxes, depreciation, amortization and rents (EBITDAR) grew +25.8% year-over-year to $828.2 million and “adjusted net income” was +$234.1 million, more than doubling adjusted net income of +$100.7 million in 2012.
Avianca Holdings airlines carried 24.6 million passengers in 2012, up 6.6% year-over-year.
(CEO) Fabio Villegas Ramirez said: “The year 2013 was marked by a general upward trend for the air travel industry and Avianca (AVI) in particular. This trend was driven by the countries that came out of the economic crisis, as well as an increase in the commercial dynamics of the Latin American countries, which in turn pushed the development growth strategies and service improvements for the subsidiary airlines of Avianca Holdings.”
Avianca (AVI) is upgrading its fleet of A320s with the Airbus Runway Overrun Prevention System (ROPS), an onboard cockpit technology designed to provide active protection and increase situational awareness during the airplane landing phase of flight.
According to Airbus (EDS), the system combines data on weather, runway condition and topography, and airplane weight and configuration to prompt appropriate callouts and alerts for pilots (FC). The (FAA) and (EASA) both issued certification of the (ROPS) late last year.
“The incorporation of the (ROPS) in 21 airplanes in Avianca (AVI)'s Airbus (EDS) fleet, will give pilots (FC) the information they need to take the best decisions for a safe landing in the minimum time possible. As a company, this will allow us to stay at the vanguard of technology for safety," said Fabio Villegas, President of (AVI).
(AVI) will be the first Latin American airline to add (ROPS) to its all-Airbus (EDS) fleet.
May 2014: Avianca (AVI) begins 3x-weekly, Cartagena - Pereira A319 service on July 17.
June 2014: A330-243 (1508, N508AV), ex-(F-WWKI), leased from Synergy Group (ONE).
July 2014: Avianca Holdings reported an operating profit of +$57.2 million for the first quarter of 2014, with an increase of +3.3% in passenger traffic. During the same period, cargo revenues grew by +6.7%. Capacity (measured by available seat kilometers (ASK)s) increased by +5.5% driven by (AVI)'s expansion in its home markets, along with the delivery of larger airplanes. (AVI) introduced 3 Airbus jets equipped with with sharklets and 2 ATR 72-600s which are being used on Colombia's domestic market.
Avianca resumed operations from Bogota (BOG) to London Heathrow (LHR) on July 3rd, following a 13-year hiatus. The 8,473 km sector to London’s busiest airport will be served 4x-weekly, utilizing the Star (SAL) Alliance member’s 252-seat A330-200s. There is no competition on the new airport pair. Furthermore, Avianca (AVI) is already operating to Europe with 2x-daily flights to Madrid and 4x-weekly services to Barcelona.
Avianca (AVI) increased its Colombian domestic network with a new service from Bogota (BOG) to Villavicencio (VVC) on July 10th. The 95 km sector will be served 2x-daily, utilizing the Star (SAL) Alliance member’s 68-seat ATR 72s and will face direct competition from (LAN) Airlines (30) and SATENA (STN) (3x-weekly).
Avianca (AVI) continued to expand its network with three new services, all of which were launched on July 17th with 3x-weekly flights, using its 120-seat A319s. The Star (SAL) Alliance member launched operations on the 623 km sector from Pereira (PEI) to Cartagena (CTG), a route that is already operated by VivaColombia (VVC)’s 4x-weekly operations. In addition, the same day, (AVI) launched flights from Pereira (PEI) to New York (JFK) via Cartagena (CTG). Nevertheless, the new service from Cartagena (CTG) to New York (JFK) will fly in direct competition with JetBlue Airways (JBL)’s 6x-weekly flights. (AVI) is also flying to New York (JFK) from Bogota (2x-daily), Medellin (daily), San Salvador (2x-daily), and San Pedro Sula (2x-weekly).
August 2014: Airbus (EDS) Prosky and Avianca (AVI) completed a successful Performance-Based Navigation (PBN) flight from El Salvador International Airport on August 2nd. This major achievement is the first milestone of a larger program lead by (AVI) and Airbus ProSky, in cooperation with all local authorities and Corporación Centroamericana de Servicios de Navegación Aérea (COCESNA) to improve airport access, safety, and reduce CO2 emissions in Central America.
Avianca (AVI) plans to deploy a network of RNP-AR (Authorization-Required) airports, including Guatemala and San José International airports, which will be operational in the near future. The corresponding procedures are aimed to benefit the entire aviation industry and will be released publicly into the Aeronautical Information Publication (AIP) by the dedicated local Authority.
2 A321-231s (6190, N697AV; 6219, N725AV), ex-(D-AZAE & D-AZAW), Wells Fargo Bank leased.
September 2014: Avianca (AVI) will increase flights on its Bogotá - Barcelona route from 4x-weekly to daily from December 18.
November 2014: Panama City-registered Avianca Holdings reported third-quarter net profits of +$33.2 million, down -7.6% from +$35.9 million posted in the year-ago period. Operating revenues were $1.23 billion, up +3.9% year-over-year, as expenses rose +10.2% to $1.16 billion. Resulting operating income for the quarter came to $70.3 million, down -46.9% from $132.2 million in the September 2013 quarter.
Avianca (AVI) attributed the results to “redeployed capacity (ASKs) as well as the strong demand observed in the Colombian domestic market and the entry into operation of the Bogota - London route.”
(AVI)’s third-quarter traffic grew +5.3% year-over-year to 8.7 billion (RPK)s on a +6.1% rise in capacity to 10.7 billion (ASK)s, creating a quarterly load factor of 81.3% LF, down -0.7 point from the 2013 third quarter. The company carried 6.9 million passengers during the quarter, up +7.5% from the 6.4 million passengers transported in the third quarter of 2013. Yield dropped 0.8% year-over-year to 11.9 cents. (CASK) excluding-fuel, was up +5.8% year-over-year to 7.5 cents.
Third-quarter (EBITDAR) fell -14.8% year-over-year to $202.5 million.
In the company’s quarterly results analysis, Avianca Holdings (CEO), Fabio Villegas Ramirez said, “Our [cargo] traffic expressed in (RTK)s grew +27% resulting in an improvement of 600 basis points in load factor when compared to the third quarter of 2013,” Villegas said. “In addition, we have made further progress . . . with the completion of the acquisition of a stake of Aerounion in Mexico and the new commercial agreement with Etihad . . . which enables the company to improve its inbound cargo operation from Los Angeles via Mexico as well as enhancing connectivity to Europe.”
On October 20, Avianca Cargo (TMP) and Etihad (EHD) Cargo announced a commercial partnership agreement involving the deployment of freighter flights from Avianca (AVI)’s Bogotá, Colombia, hub at El Dorado International Airport to Milan’s Malpensa Airport and Amsterdam’s Schiphol Airport. The 2x-week service commenced operations on November 12.
During the quarter, Avianca (AVI) took delivery of 10 new airplanes: two Airbus A321s, two A320s and two A319s, plus four ATR 72s slotted to operate on the company’s domestic Colombian and Central American routes. Two ATR 42s were taken out of service.
As of September 30, (AVI)’s fleet comprised 180 airplanes (165 of which are currently operational) including: 58 A320s (27 on operating lease); 36 A319s (17 on operating lease); 12 Embraer E190s (two on operating lease); 11 ATR 72s; 11 A330s (10 on operating lease); 10 A318s (all on operating lease); 10 Cessna Grand Caravans; nine ATR 42s (five on operating lease); eight A-321s (six on operating lease); five A330 freighters; five Fokker F 100s; three Boeing 767F freighters (one on operating lease) and two Fokker F 50s.
December 2014: News Item A-1: Panama City-registered Avianca Holdings (created by the 2009 combination of Colombia’s Avianca (AVI) and El Salvador-based, Grupo (TACA) (TAC)) will consolidate the business next year, after recently completing investing in the small Mexican cargo carrier AeroUnion (UNO).
News Item A-2: Avianca (AVI) has taken delivery of its first of 15 Boeing 787-8s. (AVI) originally placed the 787 order in 2007, becoming the first South American carrier to order the airplane.
“The addition of the first Boeing 787-8 to (AVI)'s fleet is a milestone for commercial aviation and for our airline, which strives to bring the most advanced aviation technology to our passengers,” (AVI) President & (CEO) Fabio Villegas Ramirez said. “With this airplane, we continue to fulfill the dream this company has had from the beginning: To make better and better connections between Latin America and the world, while giving our customers more enjoyable flights aboard airplanes designed to provide the greatest comfort along with maximum operational performance.”
Avianca Holdings plans to order more than >160 narrow body airplanes by the end of the year, Chairman Germán Efromovich said. Panama City-registered Avianca Holdings, created by the 2009 combination of Colombia’s Avianca (AVI) and El Salvador-based Grupo (TACA) (TAC).
January 2015: A320-214 (6411, N740AV), ex-(F-WWIE) delivery.
February 2015: News Item A-1: Avianca (AVI) has begun building a 4,300 sq m Maintenance Repair & Overhaul (MRO) facility at Córdova International Airport.
News Item A-2: Avianca Holdings has signed a memorandum of understanding (MOU) with Airbus (EDS) to order 100 A320neo family airplanes. See photo - - "AVI-A320neo A321neo 2015-02" in Avianca (AVI) livery.
The A320neo program has secured 245 firm orders from seven customers in Latin America, according to Airbus (EDS). In addition to Colombia-based Avianca (AVI), Avianca Holdings controls San Salvador-based (TACA) (TAC), Costa Rica’s (LACSA) (LAC), (Taca) Peru (TNM), Guatemala’s Aviateca (AVT), Ecuador’s Aerogal (ERG), Avianca Brazil (ONE) and (Taca) de Honduras (THD).
March 2015: News Item A-1: Avianca Holdings posted a full-year net profit of +$120.5 million in 2014, down -51.6% from a net profit of +$248.8 million in 2013.
The Panama City-registered carrier reported full-year operating revenues of $4.7 billion, up +2% year-over-year (YOY), as expenses came to $4.42 billion, up +4.6% (YOY). The company’s full-year operating profit was +$284.6 million, down -26.1% (YOY) from 2013’s $384.9 million operating income.
Avianca (AVI)’s cargo revenue performance was strong in 2014, totaling $834.2 million, up +11.6% (YOY). During the year, (AVI) acquired a stake in Mexican airfreight carrier AeroUnion (UNO) and entered into a commercial agreement with Etihad (EHD), “creating a stronger cargo operation and more connectivity from Los Angeles via Mexico, while also improving cargo connectivity to Europe, from Milan and Amsterdam to Bogota,” Avianca (AVI) said.
Avianca (AVI)’s passenger traffic grew +4.5% (YOY) to 32.6 billion (RPK)s on a +5.9% rise in capacity to 41.1 billion (ASK)s, finishing 2014 with a full-year load factor of 79.4% LF, down -1.1 points from 2013. The company carried 26.2 million passengers in 2014, up +6.6% (YOY). (CASK) for the full-year decreased -1.5% (YOY) to 10.7 cents, partly attributable to the drop in fuel prices during the 2014 fourth quarter, (AVI) said.
Excluding special items, (AVI) reported an adjusted net income of $129.1 million for the year. The company said its 2014 earnings before interest, taxes, depreciation, amortization and rents (EBITDAR) totaled $786.7 million, down -5% (YOY); (AVI)’s full-year (EBITDAR) margin was 16.7%, down -1.3 points from 2013.
In 2014, (AVI) took delivery of 32 new airplanes, including 14 Airbus A320 family airplanes, 10 ATR 72-600 airplanes for regional flight deployments, four Boeing 787 Dreamliners, two A330s and two A330F freighters. All 10 of the company’s Fokker F 50s were phased out and sold; the company’s entire ATR 42 fleet was retired as well. As of December 31, 2014, the company’s consolidated operating fleet comprised 181 airplanes.
Avianca Holdings, created in 2009, operates Latin American airlines Avianca (AVI) (based in Colombia), (TACA) (TAC) (based in El Salvador), Costa Rica’s (LACSA), Guatemala’s Aviataca (AVT), Ecuador’s Aerogal (ERG), plus Avianca Brazil (ONE), (TACA) de Honduras (THD) and (TACA) Peru (TNM).
News Item A-2: Avianca (AVI) increases its London - Bogotá service from 4x-weekly to daily on July 1 with new Boeing 787-8s. Starting July 1, (AVI) will increase its regular operation on the - London route with a nonstop daily flight between the two cities.
May 2015: News Item A-1: Avianca Holdings has selected Global Eagle Entertainment (GEE) to provide in-flight entertainment (IFE) service on board its subsidiary airlines. Through this long-term agreement, (GEE) will provide a variety of international and regional (IFE) (which includes movies, TV programming and audio) to Avianca (AVI)’s fleet of 168+ airplanes. The agreement will also be extended to provide content services on the 33+ A320neo airplanes that the airlines recently committed on order from Airbus. (GEE) will also provide content technical services to the airlines.
News Item A-2: Avianca Holdings has firmed an order for 100 Airbus A320neo family airplanes, the largest single order ever made in Latin America. SEE ATTACHED - - "AVI-A320neo A321neo-2015-05.jpg."
787-8 (37506, N784AV), Wells Fargo Bank leased.
June 2015: Star (SAL) Alliance carrier, Avianca (AVI) is to deploy its new 787-8s to Madrid, Spain from July, with the 787 Dreamliners to gradually replace A330s on routes from Bogota, Cali, and Medellin. (AVI), the Colombian flag carrier has received 5 787s since December 2014 and has another 10 on order.
July 2015: News Item A-1: ACCDT: Avianca (AVI) A330-243 (Trent 772B) (1073, /09 N973AV) performing flight AV-18, departed June 26 from Bogota (Colombia) to Barcelona, Spain with 253 passengers and 13 crew (FC & CA), was enroute at FL390 over the Caribbean Sea about 400 nm east northeast of Curacao and about 100 nm southwest of Guadeloupe at about 4:30 am, when the flight crew (FC) descended the aircraft to FL360, reporting turbulence caused injuries to a number of occupants about 190 nm southwest of Guadeloupe (N13.996 W63.772). The flight crew (FC) decided to turn around and divert to Curacao, where the aircraft landed safely about 80 minutes later. 38 occupants received serious injuries and were taken to a hospital.
(AVI) reported the aircraft encountered turbulence of 4 seconds in Venezuelan airspace and confirmed 7 occupants were taken to a hospital, 6 could already be discharged, 1 flight attendant (CA) remained in hospital for observation following a hard hit with her head.
A replacement Airbus A330-243 (1208, N974AV) positioned to Curacao as flight AV9982 and departed to continue flight AV-18 about 13.5 hours after landing.
On July 16, 2015 the French (BEA) reported in their weekly bulletin, that there were 38 serious injuries amongst the 266 occupants (247 passengers, 19 crew (FC & CA)) of the aircraft.
On July 17, 2015 Colombia's (GRIAA) released a preliminary report in Spanish reporting the aircraft was enroute at FL370 on Airway UA550 at position N13.996 W63.772 with 253 passengers and 13 crew, when the aircraft encountered severe turbulence causing minor injuries to 38 occupants, 29 passengers and 9 cabin crew. At the time, the flight crew (FC) observed a green indication on the weather radar confirmed by visual contact with a cloud cap underneath the flight path of the aircraft. While flying above the top of clouds, the aircraft experienced severe turbulence causing a vertical acceleration of +1.7G followed by a wind change from 040 to 135 degrees within 6 seconds, while crossing atmosphere interacting with the passage of a tropical wave.
News Item A-2: Avianca Holdings (CEO) Fabio Villegas said he will resign his position in January 2016, stating a desire to pursue “other professional projects and initiatives.”
Villegas became President of Avianca in 2005 and was given the title of (CEO) in 2009. He oversaw the Avianca (AVI) - (TACA) (TAC) merger, Avianca (AVI)’s initial public offering (IPO) on the New York Stock Exchange, and the company’s emergence as a major airline operator across Latin America.
“The work we have done over the years has allowed us to position (AVI) as one of the most prestigious and fastest growing airlines in the region and the world,” Villegas said.
In addition to (AVI), one of the world’s oldest airlines with roots dating back to 1919, Avianca Holdings also controls San Salvador-based (TACA) (TAC), Costa Rica’s (LACSA) (LAC), (Taca) Peru (TNM), Guatemala’s Aviateca (AVT), Ecuador’s Aerogal (ERG), Avianca Brazil (ONE), (Taca) de Honduras (THD), and Avianca Cargo (TMP).
(AVI) noted that it went from carrying 5 million annual passengers to 26 million per year over the course of Villegas’s tenure.
Avianca Holdings Chairman German Efromovich said a search for a new (CEO) will be conducted.
August 2015: News Item A-1: "Trouble in Latin America" by (ATW) Aaron Karp in AirKarp Blog, August 19, 2015.
(Copa) (COP) (COPA) Holdings Parent (CFO) Jose Montero said: "Demand for air travel in our region continues to weaken, driven by currency devaluation and low economic growth."
While North American airlines are enjoying tremendous profitability, Latin America’s airlines are struggling mightily. The future may eventually be bright for (Copa) (COP), Avianca (AVI), (LATAM) (TPR)/(LAN) and other Latin American airline companies, but the present is stormy with no sunshine in sight. (LATAM) reported a -$50 million 2nd-quarter net loss and subsidiary (TAM) (TPR) is slashing domestic Brazilian capacity. (Copa) (COP) stayed profitable in the 2nd quarter, but its net income was down -45.8% year-over-year. (GOL) (GOT) reported a doubling of its net deficit in the 2nd quarter and is cutting capacity -2% to -4% year-over-year in the 2015 2nd half.
The hardest hit Latin American economies are Brazil, Venezuela and Colombia, and Latin American airlines’ ties to formerly fast-growing Brazil are particularly damaging to their bottom lines. Brazil’s economy is expected to contract in 2015, and the value of its currency, the real, has plunged. Of 152 currencies tracked by "Reuters," only the currencies of Kyrgyzstan, Ukraine, and Azerbaijan have performed worse than the real in 2015.
As a result of all this, the airline revenue environment is horrendous in Latin America. Both (LATAM) and (Copa) (COP) reported year-over-year revenue declines of >-20% in the 2nd quarter, and unit revenue performance was even worse.
Speaking to analysts to discuss Panama-based (COP)’s 2nd quarter earnings, senior executives didn’t sugarcoat the situation. “Demand for air travel in our region continues to weaken, driven by currency devaluation and low economic growth,” (COPA) Holdings (CFO) Jose Montero said.
(COP) (CEO) Pedro Heilbron doesn’t foresee a recovery anytime soon. “The economies of Latin America, particularly in South America, still don’t show signs of recovery,” he said. About 40% of Copa (COP)’s (O&D) revenue is tied up in Colombia, Venezuela and Brazil, and the company’s revenue from those markets has been cut in half this year. “The regional economic environment has weakened further” in recent months, Heilbron said.
The biggest problem for Latin American airlines is the difficulty they’re having planning going forward with so much uncertainty in the air. “More than anything, we need stable currencies and stable economies,” Heilbron explained. “It’s not that we need economic growth to rebound to where it was a few years ago, we just need stability and more certainty.”
The difference in financial performance right now, between North American and Latin American airlines is striking. Airlines for America (A4A) VP & Chief Economist John Heimlich told reporters that “weakness in Latin America has been a bit of drag on earnings” for USA carriers that operate to Latin American countries. But the USA “domestic situation is stable for the foreseeable future” and the problems for airlines in Latin America show no signs of migrating north, he said.
October 2015: News Item A-1: (ANA) and Avianca (AVI) began code share services on October 25. Passengers can book flights with (ANA)’s flight code between Japan via the USA or UK to Colombia, El Salvador, Guatemala, and Honduras. (ANA) increased daily, Tokyo (HND) - Shanghai service to 2x-daily, October 25. A 3rd daily will be added February 1, 2016.
November 2015: Panama City-registered Avianca Holdings posted a 2015 3rd-quarter net profit of +$102.1 million, more than tripling its +$33.2 million net profit in (3Q) 2014.
“[The] results were mainly driven by a leaner cost structure as the company continues to implement cost saving initiatives, along with the expansion of our cargo business,” (AVI) said. Yet passenger revenues fell -13.4% year-over-year (YOY) as currency depreciation in the region led to weaker demand; as a result Avianca Holdings’ 3rd-quarter yield fell -20.3% (YOY) to 9.5 cents. On the positive side, Avianca Holdings’ cargo and other revenues increased +20.6% to $221.7 million during the quarter. “The 3rd quarter of 2015 has been without a doubt a challenging 1 for Avianca Holdings as the economic landscape unfolds in a time of high uncertainty,” (AVI) (CEO) Fabio Villegas said. Villegas has previously announced his intention to step down from (AVI) in January 2016.
Total operating revenues for the quarter were $1.12 billion, down -8.3% (YOY). Expenses fell -8.9% (YOY) to $1.04 billion. The company’s operating profit for the quarter came to +$72.1 million, up +2.6% (YOY).
(AVI)’s 3rd-quarter traffic grew +8.7% (YOY) to 9.4 billion (RPK)s on a +8.8% rise in capacity to 11.6 billion (ASK)s, creating a quarterly load factor of 81.3% LF, unchanged from the 2014 3rd quarter. (AVI) carried 7.4 million passengers during the quarter, up +7.6% (YOY). 4 new Airbus (EDS) aircraft were delivered during the quarter, 3 A320s and 1 A321, while an A319 was phased out.
(AVI)’s (CASK) excluding-fuel fell -8.6% (YOY) to 6.8 cents. Third-quarter (EBITDAR) was up +5.2% (YOY) to $212.9 million. During the quarter, (AVI) decided to hedge 100% of its fourth-quarter 2015 fuel consumption at a fixed price of $42/barrel. “As such by the end of the (3Q) 2015, 171.4 million gallons were hedged,” (AVI) said. “[This] represents approximately 40% of the total expected volume to be consumed over the next twelve months.” The average hedge price was set at $1.84/gallon.
As of September 30, Avianca (AVI)’s fleet comprised 190 aircraft (176 of which are currently operational) including: 60 A320s (26 on operating lease); 35 A319s (14 on operating lease); 15 ATR 72s; 12 Embraer E190s (2 on operating lease); 10 A330s (9 on operating lease); 10 A318s (all on operating lease); 10 A321s (6 on operating lease); 11 Cessna Grand Caravans; 6 A330Fs; 5 ATR 42s; 4 A300F freighters, and 3 Boeing 767F freighters (1 on operating lease).
A321-231 (6861, N747AV), ex-(D-AVXO) delivery.
January 2016: Avianca Holdings has appointed Álvaro Jaramillo Buitrago as interim (CEO), following the resignation of Fabio Villegas on January 17. Avianca (AVI) said it is in the final stages of the recruitment process for a new (CEO).
Jaramillo obtained a degree in Business Administration from Universidad del Norte in Barranquilla, Colombia, and has served as independent member of Avianca Holdings board of directors since 2007.
He also served as (CEO) of Avianca (AVI) from 1991 to 1993, (CEO) of Banco de Colombia, among other financial institutions in Colombia.
February 2016: Avianca (AVI) on February 4 commenced services on the 1,027 km sector between Quito (UIO) and Panama City (PTY). The Star Alliance member will utilize its A319s on the route between the Ecuadorian and Panamanian airports 2x-weekly (Thursdays and Sundays). (AVI) also joins fellow alliance member, Copa Airlines (COP) on the city pair, with (COP), the national carrier of Panama operating 35x-weekly services between the two cities. Quito becomes the fourth route for Avianca (AVI) from Panama City, with the carrier also serving Bogota (Colombia) with 21x-weekly flights, San Jose (Costa Rica) with 19x-weekly flights and San Salvador (El Salvador) with 11x-weekly flights.
March 2016: News Item A-1: Avianca Holdings has named Microsoft Latin America President, Hernán Rincón as its new (CEO), replacing Fabio Villegas, who resigned in January.
Rincón will also be (CEO) of Colombian flag carrier, Avianca (AVI). Rincón’s appointment ends a (CEO) search that began when Villegas announced his intention to step down last July. Alvaro Jaramillo Buitrago had served as interim (CEO) since Villegas’s January 17 departure. Rincón will formally take over April 4.
He will be taking the helm of one of Latin America’s largest airline companies. In addition to Avianca (AVI), a member of the Star (SAL) Alliance and one of the world’s oldest airlines with roots dating back to 1919, Avianca Holdings also controls San Salvador-based (TACA) (TAC), Costa Rica’s (LACSA) (LAC), (Taca) Peru (TNM), Guatemala’s Aviateca, Ecuador’s Aerogal (ERG), Avianca Brazil (SOL), (Taca) de Honduras (THD) and Avianca Cargo (TMP).
Avianca Holdings Chairman, German Efromovich said that Rincón’s appointment “as the head of Avianca Holdings and Avianca (AVI) coincides with the beginning of a new phase in which strengthening of the organization is crucial to cope with the changes of the environment. The latter, however, requires a rigorous adjustment of our strategy in order to maintain (AVI)’s high quality of service and business competitiveness.”
Rincón said he “will work relentlessly to generate long-term value for our clients, commercial partners, and investors, prioritizing operational efficiency and superior service as the only way to maintain the preference and loyalty of thousands of travelers that choose (AVI) on a daily basis to travel to America and the world.”
According to Microsoft, Rincón had been “responsible for the long-term business strategy for the 46 countries and territories in Latin America and the Caribbean in which Microsoft has presence.” He oversaw all of Microsoft’s sales, marketing and services operations in Latin America.
News Item A-2: "What Avianca’s Innovative (CEO) Choice* Tells Us About Avianca’s Future" by Aaron Karp in AirKarp blog, March 31, 2016.
* Why this was choosing a (CEO) to implement a visionary strategy for interacting with passengers digitally.
Avianca’s (AVI) innovative pick as its new (CEO), Microsoft Latin America President, Hernán Rincón, immediately brought to mind a recent quote from Enrique Beltranena, the (CEO) of Mexican low-cost carrier Volaris (VLS). “I believe that in 5 to 10 years, (VLS) will be a digital operation that flies airplanes,” he said in November at the 2015 Latin American & Caribbean Air Transport Association (ALTA) Airline Leaders Forum in San Juan, Puerto Rico.
In other words, Beltranena is starting to think of (VLS) primarily as a digital company that just happens to have an aircraft fleet. In an interview this month with "The Motley Fool," Beltranena expanded a bit on this notion, explaining that (VLS) is seeking to develop “much more touch-points to sell throughout our customer journey,” adding, “We have identified opportunities to sell products and services around [the] traveler’s journey, which will allow us, for example, to have better presence on volaris.com and the mobile apps. We strongly think we can really improve our on board variety of products and start selling taxis and hotels and everything on board.”
Avianca Holdings spent about 8 months searching for a new (CEO) after former (CEO), Fabio Villegas announced his intention to leave. Their search landed not on someone who had previously run an airline or held high executive positions at an airline or has any familiarity (based on his resume) with the intricacies of how an airline works. (His one tangential tie to the airline business comes from having previously worked at Unisys, the Information Technology (IT) company that, among other things, provides technology solutions to airlines and airports. But Rincón worked in Unisys’s Financial Services business, not its Transportation business.)
Instead, Avianca (AVI) chose the man whom Microsoft, the Seattle-based software and technology giant founded by Bill Gates, described as its “ambassador” to Latin America, where Rincón oversaw all of the company’s sales, marketing and services operations, and set its long-term strategy for the region.
(AVI) did not choose a (CEO) to manage takeoffs and landings and inspect an A320’s vertical stabilizer. The company’s board of directors, led by Chairman, German Efromovich, chose someone to implement a visionary strategy for interacting with passengers digitally. This means everything from sophisticated, analytics-driven methods of pricing and selling (AVI)’s core product (seats on flights) to using the airline and the passenger’s journey as a platform to sell a wide array of services. And using websites and mobile apps to provide the passenger with information that will make his or her air travel experience better and easier.
I can’t imagine that 10 years ago, or even four or five years ago, a major global airline company would tap someone with Rincón’s resume to be its (CEO). But in 2016, it makes perfect sense; Avianca (AVI) is likely ahead of the game. Ten years from now, I suspect more and more people running airlines will be digitally-oriented rather than aviation-focused.
News Item A-3: "Boeing Projects Latin America Will Need 3,050 New Airplanes by 2036" by (ATW) Linda Blachly, March 30, 2016.
Boeing (TBC) has forecast that Latin American airlines will need 3,050 new airplanes valued at $350 billion in the next two decades, tripling the region’s current fleet size. “Over the long term, Latin American economies will grow faster than the rest of the world,” (TBC) President Latin America, Donna Hrinak said. “This growth will create increased passenger traffic in the region and drive Latin American airlines to expand and compete for business that has traditionally been dominated by foreign operators.”
To meet increased passenger traffic, (TBC) said the region will require >2,500 new single-aisle airplanes over the next 20 years, reflecting the continued growth of low-cost carriers (LCC)s and further expansion of networks in the region.
Wide-body demand is forecasted at 340 new airplanes as regional carriers continue to compete more strongly on long-haul routes. Currently, over two-thirds of twin-aisle departures from Latin America are on Boeing (TBC) products.
According to (TBC), Latin America and the Caribbean now feature a younger fleet than the world average. Average airplane age in the region’s fleet continues to drop, going from >15 years in 2005 to <10 years today. The region has been in a steady replacement cycle since the mid-2000s and that trend will continue as nearly 60% of the current fleet is replaced over the next 2 decades.
The addition of the 787 Dreamliner to the (LATAM) (LAN)/(TPR), Avianca (AVI), and Aeromexico (AMX) fleets has allowed the airlines to open new routes and gain access to markets that were previously not possible. (AMX) operates a nonstop 787 Dreamliner flight from Mexico City to Tokyo, a route that previously required a refueling stop.
In 2015, (LATAM) (LAN)/(TPR) operated the world’s 1st 787 Extended Twin-engine OPerationS (ETOPS) mission beyond >180 minutes from Santiago, Chile to Auckland, New Zealand. Later this year, (LATAM) (LAN)/(TPR) will utilize the full 330 minute (ETOPS) on the same route, trimming 90 minutes off the flight tame and saving up to 2,500 gallons of fuel per trip.
According to (TBC), the 787 Dreamliner’s capability and low-cost economics allow Latin American airlines to “unlock more point to point connections over remote regions of the world, allowing the airlines to expand their business and attract more customers.”
News Item A-4: Lufthansa Systems (LHS) has expanded its cooperation with Avianca Holdings’ Avianca Colombia and the (TACA) (TAC) Group, which have renewed numerous contracts for commercial and operations solutions products. The renewed contracts include: the NetLine/Ops operations control solution, the NetLine/Crew crew planning tool, NetLine/Sched for optimizing flight schedules, Lido/Flight for flight planning, the SchedConnect code share management solution, and ProfitLine/Price for optimal pricing.
April 2016: News Item A-1: Etihad Airways (EHD) has established a code share arrangement with Colombia’s Avianca (AVI).
The new agreement will give (EHD) an additional link to South America, the one continent where the “Big Three” Gulf carriers still have relatively little penetration. Avianca (AVI) has an extensive network in the Americas and Europe.
Under the agreement, (EHD) will place its (EY) code on Avianca (AVI) - operated flights from Bogota to London Heathrow and Madrid Barajas, while (AVI) will place its (AV) code on (EHD) flights between Abu Dhabi to the same two European capitals.
From May 2016, members of the respective airlines’ loyalty programs, "Etihad Guest" and "Avianca’s LifeMiles," will be able to earn miles on the other’s code share services. The 2 carriers are looking at later expanding the loyalty programs’ benefits to include other destinations on each other’s networks.
“The continued development and expansion of our partnership with the Avianca Group will give Etihad Airways (EHD) unprecedented reach, facilitating its penetration in markets with greater commercial and tourism dynamics in Latin America, while promoting cultural and business relations between the United Arab Emirates (UAE) and Colombia,” (EHD) Group Chief Strategy & Planning Officer & Head Etihad Crystal Cargo division, Kevin Knight said.
“At (AVI), we are very pleased with this code share agreement, which will provide travelers in Latin America with more options to easily reach strategic destinations in the Middle East,” (AVI) President, Hernán Rincón added.
May 2016: News Item A-1: Avianca Holdings, one of Latin America’s largest airline operators, said it has negotiated a “significant reduction” in aircraft deliveries from 2016 to 2019 with Airbus (EDS).
Last May, Avianca (AVI) firmed up an order for 100 A320neo family aircraft, the largest single aircraft order ever placed by a Latin American airline. The order brought to 133 the number of A320neo family aircraft, (AVI) has on order.
In addition to Colombian flag carrier Avianca (AVI), Avianca Holdings also controls San Salvador-based (TACA) (TAC), Costa Rica’s (LACSA), Taca Peru, Guatemala’s Aviateca, Ecuador’s Aerogal, Avianca Brazil (SOL), Taca de Honduras and Avianca Cargo (TMP).
Avianca (AVI) did not say exactly how many aircraft deliveries had been changed or whether it has deferred or canceled Airbus (EDS) aircraft on order. An Avianca spokesperson did not respond to a query.
With the Latin American airline market struggling, (AVI) is looking to cut costs. In a brief filing with the USA Securities & Exchange Commission, (AVI) said the agreement reached with Airbus (EDS) is “directed towards enhancing profitability, achieving a leaner capital structure as well as reducing the current levels of debt.”
Avianca (AVI) added the agreement “represents an important reduction in capital expenditure of $1.4 billion over the next 30 months.”
News Item A-2: Becoming a female pilot (FC) for Avianca:
July 2016: Silver Airways and Avianca (AVI) have entered into a code share partnership, the first international code share partnership for Silver Airways. Passengers flying (AVI) on Bogota to Orlando and to Fort Lauderdale can connect onto Silver Airways flights to Key West, Tampa, Pensacola, and Tallahassee. Silver’s customers traveling from Florida can connect to (AVI)’s flights to Bogota and beyond. Silver Airways also begins service to Cuba in September.
August 2016: News Item A-1: Avianca Holdings S A, the parent of 7 Latin American passenger airlines including Colombian flag carrier Avianca (AVI) and air-freight carrier Avianca Cargo (TMP), posted a -$23.2 million net loss for the 2016 2nd quarter, deepened from the company’s -$22.8 million loss in (2Q) 2015.
Excluding a one-time gain (+$2 million) and loss (-$6.4 million) related to the sale of a pair of aircraft during the quarter, plus a -$7.7 million accounting loss on adjustment of aircraft reasonable value, Avianca (AVI) reported an adjusted net loss of -$4 million for the second quarter, lower than the company’s adjusted net loss of -$24.8 million in (2Q) 2015.
(AVI)’s total operating revenue for the quarter was $966.2 million, down -9% year-over-year (YOY). Adjusted expenses fell -12.1% (YOY) to $928.6 million. (AVI)’s unadjusted operating income for the quarter was $25.5 million, compared to $0.8 million in (2Q) 2015. The company’s adjusted operating income for the 2nd quarter was $37.6 million, a 7-fold (YOY) increase.
(AVI)’s decrease in operating expenses was driven by lower fuel prices (down -30.1% (YOY)) and a decrease of -23.4% in sales and marketing through the company’s association with Madrid-based Amadeus, a provider of customer-relations global distribution systems (GDS)s. Avianca (AVI) (CEO) Hernan Rincon said (AVI) expanded its agreement with Amadeus during the quarter. (AVI) will become the launch customer for Amadeus’ "Anytime Merchandising" platform, which will engage customers at “decisive moments during their journey, such as the searching and booking phase, when at the airport, during the flight, at the hotel [etc],” according to Amadeus.
Rincon took the helm of Avianca (AVI) on April 4, following the January departure of (CEO) Fabio Villegas. Previously, Rincon was President of Microsoft Latin America. In Avianca’s (2Q) financial statement, Rincon said that in July, (AVI)’s board of directors approved a new organizational model.
“We acknowledge that growing technology penetration in our markets [has allowed] our customers to better compare different offerings in more detail,” Rincon said. “Supported by technology, our aim is to enhance customer experience and boost productivity. This new model is meant to bring the company closer to its customers and markets by empowering managers, increasing the number of direct reports, and hence reducing organizational layers within the company.
“Leveraged on new technologies, this new structure aims to align corporate goals, increase team work and improve productivity as we introduce a dual reporting matrix structure that will enable the company to make faster and smarter decisions,” Rincon added.
During the quarter, Avianca opened a new 42, 125 sq-meter/1,345 sq ft) maintenance, repair and overhaul (MRO) facility near Medellin, Colombia, including nearly 20,000 square meters of hangar and aircraft-component repair space.
Avianca (AVI)’s 2nd-quarter traffic grew +6.5% (YOY) to 9.04 billion (RPK)s on a +7.4% rise in capacity to 11.56 billion (ASK)s, creating a quarterly load factor of 78.1% LF, down -0.6 point (YOY). A consolidated total of 7.1 million passengers were carried during the quarter, up +2% (YOY). Yield fell -16.1% (YOY) to 9.8 cents; (PRASK) declined -16.8% (YOY) to 7.7 cents.
One Airbus A320ceo aircraft was delivered during the quarter, while 3 A319s and 2 Embraer E190s were phased out. Avianca Holdings and it subsidiaries’ operating fleet comprised 174 aircraft as of June 30.
News Item A-2: 787-9 (37509, N791AV) (Charleston N C #135), Wells Fargo Bank leased and A319-115 (7284, N751AV), ex-(D-AVWZ) deliveries also Wells Fargo Bank leased.
September 2016: Avianca (AVI) began daily Bogota to London using a Boeing 787 on September 18.
October 2016: Silvia Mosquera appointed Executive VP Sales, Marketing, & Revenue.
November 2016: Avianca Holdings S A, posted a +$37.8 million net profit for the 3rd quarter of 2016, down -63% from a +$102.1 million net profit the company reported in (3Q) 2015. Avianca Holdings is the parent of 7 Latin American passenger airlines including Colombian flag carrier Avianca (AVI) and air-freight carrier Avianca Cargo (TMP).
(AVI)’s total operating revenue for the quarter was -$1.1 billion, down -4.9% year-over-year (YOY). Operating expenses fell -3.1% (YOY) to $978.8 million. The company’s operating income for the quarter was $83.4 million, up +15.7% compared to $72.1 million in (3Q) 2015, with an operating margin of 7.9%, up +1.4 point (YOY).
(AVI) said the results were driven by lower operating costs as the company benefited from its revised hedging policy, reducing expenses by nearly $30 million compared to (3Q) 2015. Fuel expenses were down -19.3% (YOY). The company also cut maintenance and repairs expenses -16.6% (YOY), following a reduction in fleet re-delivery provisions as well as a decline in engine overhaul expenses. “While we continue to experience some political and macroeconomic uncertainty in several markets throughout Latin America during the 3rd quarter of 2016, (AVI) benefited from welcome oil price stability as well as exchange rate steadiness in key markets,” Avianca Holdings (CEO) Hernán Rincón said. “[This] stability has fueled renewed demand on both the international and domestic fronts. Growth in terms of (ASK)s has been leveled throughout our network, at around 3% [to 12 billion (ASK)s] [and] passenger traffic numbers, measured in (RPK), grew by +5.9% [to 10 billion (RPK)s] driven by steady demand in our home markets and strong sales for our international routes,” Rincón said. “In particular, the services from Bogota to Buenos Aires, Los Angeles, London, and Madrid all registered load factors above >85% LF. As such, the 83.5% LF load factor registered this quarter across the network is the strongest since the integration between Avianca (AVI) and (TACA) (TAC).”
To accommodate increased demand, (AVI) increased its frequencies to the Iberian Peninsula from 21 to 35 weekly frequencies, Rincó said.
The company served 7.6 million passengers during the quarter, up +3.2%. Yield fell -7.1% to 9.5 cents; (PRASK) was down -4.6% to 7.7 cents.
Avianca (AVI) took delivery of 2 Boeing 787-8s and 1 Airbus A319 during the quarter. As of September 30, Avianca Holdings and its subsidiaries operating fleet totaled 177 aircraft, comprised of 110 A320 family aircraft, 15 ATR 72s, 11 Cessna 208s, 10 Embraer E190s, 9 A330s, 9 787s, 5 A330F and 4 A300F cargo aircraft, 2 ATR 42s, and 2 767F freighters.
In his (3Q) (CEO) message, Rincón announced the appointment of Roberto Held Otero as the company’s new (CFO), effective November 1, replacing Gerardo Grajeles, who will now head Avianca (AVI)’s new Strategic Business unit.
January 2017: Boeing (TBC) delivered the 500th 787 Dreamliner, a 787-8 to Colombia flag carrier Avianca (AVI), during the week of December 22, 2016.
February 2017: "United Airlines (UAL) and Colombia’s Avianca (AVI) Holdings are engaged in negotiations to “deepen the companies’ commercial and strategic relations,” (UAL) said.
(UAL) said it is also in talks with Avianca Brasil (ONE). (UAL), (AVI) and Avianca Brasil (ONE) are all members of the Star (SAL) Alliance.
Details of what form the strategic partnership may take were not revealed. “The board of directors of Avianca (AVI) has authorized Avianca (AVI) to carry out all the analysis and other steps that are required for a potential strategic-commercial alliance with United Airlines (UAL),” (AVI) told regulators in Colombia, according to "Reuters."
It is unclear whether the negotiations could lead to (UAL) taking a stake in Avianca (AVI) or Avianca Brasil (ONE). (ONE) (CEO) Jose Efromovich said last year that (AVI) had “opened up the door” to a potential outside investment.
“(UAL) and (AVI) have a long history of partnership through the Star (SAL) Alliance, and we look forward to enhancing our cooperation to provide even better service for our customers,” (UAL) President Scott Kirby said. “Deepening our relationship allows us to expand on our existing Star (SAL) Alliance and strategic partnerships in the region as we continue building a great network in Latin America.”
United (UAL) took a 5% stake in Azul Brazilian Airlines (ONE) in 2015.
March 2017: News Item A-1: Avianca Holdings posted a net profit of +$44.2 million in 2016, reversing a -$139.5 net loss the company reported in 2015. “Through steadfast focus on implementing our [business] plan, and the benefit of improved microeconomic tailwinds, 2016 was a strong year for Avianca (AVI),” (AVI) (CEO) Hernán Rincón said. Aviana Holdings is the parent of 7 Latin American passenger airlines including Colombian flag carrier Avianca (AVI) and air-freight carrier Avianca Cargo (TMP).
(AVI)’s operating revenue for the year totaled $4.1 billion, down -5.1% from $ 4.4 billion in 2015. Operating expenses decreased -6.3% to $3.9 billion, compared to $4.1 billion in 2015. The company’s operating profit for the year was +$258.5 million, up +18.1% year-over-year (YOY). The company’s full-year operating margin increased +1.3 points (YOY) to 7.2%.
“In [(1Q) 2016], I reiterated our commitment to improving Avianca (AVI)’s capital structure [and] we have made strong strides on this front, through implementing a 3 pronged approach during the year,” Rincón said. “1stly, we began by renegotiating aircraft deliveries for the 2016 through 2019 period, resulting in a significant reduction in capital expenditure for the company totaling $1.4 billion. 2ndly, we implemented an organizational restructuring in [(2Q) 2016] streamlining (AVI)’s administrative layers and finally, we reduced the company’s debt by -$198 million.”
Rincón projected Avianca (AVI)’s capacity growth for 2017 will be in the range of 6.5% to 8.5%, while maintaining load factors between 80% to 82% LF. Projected passenger growth in 2107 will be between +4.0% and +6.0%. “As a result, we estimate that our (EBIT) margin for 2017 will be in the range of 6.0% and 8.0%,” Rincón said.
In 2016, (AVI) recorded 29.5 million passengers, up +4.2% (YOY). Traffic increased +7.8% (YOY) to 38.2 billion (RPK)s and capacity increased +5.9% (YOY) to 47.1 billion (ASK)s. Load factor for the year came to 81.1% LF, up +1.4 points (YOY). (RASK) fell -1 point (YOY) to 8.8 cents; (CASK) declined -1.1 points (YOY) to 8.2 cents.
In January, Avianca (AVI) entered into negotiations with United Airlines (UAL) “to create a long-term strategic partnership that will provide our customers with the best possible travel experience when traveling to or from the USA,” Rincón said. “[We] seek to implement as soon as possible an agreement to enhance and deepen our commercial and strategic relationship with (UAL), our Star (SAL) Alliance partner.”
News Item A-2: Avianca (AVI) launched flights between Sao Paulo Guarulhos (GRU) and Iguassu Falls (IGU) on March 6. (AVI), the Star (SAL) Alliance member will offer a daily service on the 845 km sector on its fleet of A320s. (AVI) will face direct competition on the route from (LATAM) Airlines (LAN) and (GOL), with both combined already offering 38 weekly flights on the airport pair. It should be noted that both (LATAM) Airlines (LAN) and (GOL) also link Iguassu Falls with Sao Paulo Congonhas, while Azul Airlines (AZL) provides flights between Iguassu Falls and Sao Paulo Viracopos. Overall (AVI)’s new link between Guarulhos and Iguassu Falls occupies 9.4% of weekly seats on the city pair, with (LATAM) (LAN) having 44%, (GOL) 34% and Azul Airlines (AZL) 13%. This is currently Avianca (AVI)’s only route to Iguassu Falls. However, Frederico Pedreira (CEO) of Avianca Brasil (ONE), said at the launch that in early May the company will operate 2 more flights from the airport. 1 of them will reinforce the link to Guarulhos (meaning service will increase to 2x-daily) and the other will be to Rio de Janeiro. Pedreira said the new connection to Rio de Janeiro will be daily.
May 2017: News Item A-1: Avianca (AVI) is expanding its flying from San José, Costa Rica, a former hub, to counteract Volaris (VLS) growth.
News Item A-2: Avianca (AVI) on May 15 began daily flights between Bogota (BOG) and Montevideo (MVD). With this latest launch, (AVI) became the only carrier to offer non-stop service between the countries of Colombia and Uruguay. In fact, no carrier has connected these 2 countries with non-stop flights for at least a decade. The 4,785 km route will be flown by Avianca daily on its fleet of A319s. For (AVI), this becomes its 2nd link to Montevideo, with it already linking the city with Lima with daily flights flown under its subsidiary Avianca Peru (TNM).
August 2017: News Item A-1: Avianca Holdings Chairman Germán Efromovich said the Latin American aviation market is improving, despite localized problems. “We are achieving what we predicted,” he said. “Every year, Avianca (AVI) achieves a little bit more. Our prediction and understanding of the market is confirmed.” In the 1st 7 months of 2017, Avianca Holdings reported carrying 18 million passengers, up +7% compared to the same period a year ago.
News Item A-2: Citing significant 2nd-quarter gains in yield, operating income, revenue and traffic, Colombia’s Avianca Holdings raised its full-year (EBIT) margin guidance to between 7% to 9%, up 1 from (1Q) 2017, (AVI) reported August 15.
“[Our] focus on increasing revenues, cost reduction and efficiency throughout our organization have enabled (AVI) to capture important benefits over the past 3 months,” (AVI) (CEO) Hernán Rincón said. “In addition, we saw stable economies in the region after >2 years of economic downturn, as well as a relative stable oil price after [recent] ups and downs.”
Aviana Holdings is the parent of 7 Latin American passenger airlines, including Colombian flag carrier (AVI) and air-freight carrier Avianca Cargo (TMP).
(AVI) reported a net profit of $10.6 million for the 2017 2nd quarter, a reversal of the company’s $23.2 million net loss in (2Q) 2016. Operating revenue increased +13% year-over-year (YOY) to $1.1 million, as passenger revenue increased +18.1% >(2Q) 2016. Avianca (AVI) said this was its strongest (2Q) revenue since 2014, with the quarter also producing (AVI)’s 1st year-on-year yield increase in 3 years (up +3.2% (YOY) to 8.46 cents).
(AVI)’s expenses were up +9.5% to $1 billion during the quarter, primarily driven by a +22% rise in fuel expenses. A +24.4% rise in air traffic expenses was driven by a +9% increase in passengers as well as an accompanying increase in passenger compensation related to unscheduled repairs, delays and overbooking, the company said. Ground operation expenses, driven by (AVI)the airline’s increased international operations plus a rise in landing fee expenses, were up +16.5% (YOY).
The company turned an operating profit of $62.1 million for the quarter, more than doubled from its $25.5 million operating income a year ago, producing a 5.7% operating margin, up +3.1 points (YOY).
Passenger traffic was up +14.5% during the quarter to 10.3 billion (RPK)s, as capacity grew +9% to 12.6 billion (ASK)s. Load factor for the quarter was 82%, up +3.9 points (YOY) ((AVI)’s highest (2Q) load factor in 5 years) which the company attributed to its international operations and top-performing routes to Europe as well as destinations within South America.
Avianca Holdings Chairman Germán Efromovich recently said (AVI) is opening more routes, including 4x-weekly Bogota to Boston services. A new, still-unidentified route to Europe is expected to be launched before year-end, Efromovich said. (AVI) Colombia’s current routes from Bogota include destinations to London Heathrow, Madrid Barajas and Barcelona El Prat, which use Boeing 787-8s. Avianca Brasil (SOL) recently began service between São Paulo Guarulhos (GRU) to Miami, Florida and (GRU) to Santiago de Chile, utilizing Airbus A330-200s on the routes.
(AVI) reduced its fleet by -2 aircraft (an A319 and an A300F freighter) during the quarter, ending the period with a consolidated operating fleet of 179 aircraft.
Having determined that (AVI)’s cost control and revenue growth measures are gaining traction, with traffic on the rise despite restraint in capacity deployment, (AVI) revised its full-year guidance for 2017. In addition to the +1 point rise in its (EBIT) margin (to between 7% and 9%), (AVI) rose both its passenger and capacity increase guidance for the year by +0.5 point, to between 4.5% to 6.5% for passengers and 7% to 9% for capacity. (AVI) kept its load factor expectation for the year flat, between 80% to 82% LF.
News Item A-3: Avianca (AVI) has been busy expanding its domestic network this week, particularly from Cali (CLO) where it has begun 3 new routes to Bucaramanga (BGA), San Andres Island (ADZ) and Santa Marta (SMR). Of the 3 routes, the 1 that will face direct competition is the daily connection to San Andres Island, a sector already flown by (LATAM) Airlines 2x-daily. Along with these 3 services, a further 2 San Andres Island links have also been launched, from Cartagena (CTG) and Medellin (MDE) respectively. These 2 routes will also go head-to-head with (LATAM) Airlines (LAN). The average weekly frequency of the 5 routes inaugurated this week is 4.2, while the mean sector length is 855 km. All services are scheduled to be operated by A320s.
December 2017: (SMBC) Aviation Capital (SBC) and Avianca (AVI) announced an agreement for the purchase and leaseback of 11 aircraft, comprising 9 A320neos and 2 A321neos. The 9 A320neos are scheduled for delivery in 2018 and 2019, while the 2 A321neos have previously delivered in the 3rd and 4th quarter of 2017. All 11 aircraft will be equipped with (CFM) International (LEAP-1B) engines.
February 2018: News Item A-1: In results adjusted to reflect a 51-day pilots (FC)’s strike affecting nearly half of its 4th quarter, Avianca Holdings reported +$245 million in adjusted net income for 2017, more than doubling the company’s net profit over 2016.
On a non-adjusted basis, Avianca (AVI) reported +$82 million in net profit for the year, a +85.5% increase over $44.2 million in 2016.
(AVI) (CEO) Hernan Rincon said “2017 could have been probably the best year of the company in our almost 100 years, but because of the turbulences we came across during the (4Q) we were short of this goal.”
Between September 20 and November 14, 2017, 730 pilots (FC) represented by the Colombian Association of Civil Aviators (ACDAC) (over half of Avianca Colombia’s flying staff) staged strike action, protesting alleged wage inadequacies between Colombian pilots versus international pilots. In October, the Supreme Court of Bogota agreed with (AVI)’s assertion that the strike was illegal, holding up the Colombian constitutional law stating strike actions disrupting essential public services, ie, transportation, were illegal. A Colombian Ministry of Labor-appointed tribunal is set to resolve the conflict.
As part of its adjusted 4th-quarter figures, (AVI) included one-time losses of -$152 million in foregone revenue related to the (ACDAC); $62 million in (ACDAC)-related operating expenditures; and $20 million in wet-lease expenses.
“From an operational perspective, [during the strike] we deployed larger capacity aircraft on our domestic routes, wet leased wide body aircraft on 2 international routes to serve our customers and optimized staff deployment across our network,” Rincon said.
“Despite the (ACDAC) pilots (FC)’s strike, we transported just under <30 million passengers in 2017, in line with 2016,” Rincon said. “Our estimates indicate that without these unfortunate circumstances, full-year passengers transported would have seen an increase of +5.9%.”
Avianca (AVI)’s 4th-quarter passenger traffic was down -6.9% to 9.4 billion (RPK)s while capacity decreased -7.3% to 11.2 billion (ASK)s, producing an 84.2% LF load factor, the highest (4Q) load factor since the (AVI)’s integration with (TACA) in 2010.
Excluding strike-related and other one-off adjustments, (AVI) recorded an adjusted net income of +$127.8 million for the 4th quarter, more than doubling its +$51.2 million net profit a year ago. (AVI)’s adjusted net income margin for the quarter was 10%, a +5.4-point rise year-over-year (YOY).
Passenger revenue (up +18.5%) and cargo revenue (up +3%) fed (AVI)’s $1.3 billion in adjusted 4th-quarter operating revenue (a +15.2% rise over (4Q) 2016. (AVI) said it was its strongest 4th quarter revenue since the (TACA) merger.
(AVI)’s adjusted operating expenses for the quarter increased +10% to $1.1 billion, driven by a +4.2% increase in fuel expenses coupled with a tripling of flight operating expenses related to an increase in wet-leased aircraft and a +16% rise in labor expenses related to training of 3rd-party pilots (FC) and employees brought in during the strike period.
Adjusted operating income for the quarter reached $169.1 million, up +65.6%, with a 13.3% operating income margin, up +4.1 points (YOY).
Looking to 2018, (AVI) forecasted an operating margin between 6% to 8% for full-year 2018. Capacity is expected to increase between 8% to 10%; total passengers are forecast to rise between 7% to 9% and the overall load factor will be between 80% LF to 82% LF.
May 2018: News Item A-1: Avianca (AVI) will begin 5x-weekly Bogota to Munich (Germany) Boeing 787 services, from November 16.
August 2018: Avianca (AVI) Posts -$36 million (2Q) Loss on Fuel Costs, Strike Effects" by Mark Nensel (firstname.lastname@example.org), August 16, 2018.
Avianca Holdings had an unadjusted net loss of -$35.7 million for the 2018 2nd quarter, reversed from a +$10.6 million net profit in (2Q) 2017, as the Colombia-based company faced currency volatility, increased fuel prices, infrastructure disruptions and continuing after-effects of a 51-day pilots (FC) strike in (4Q) 2017.
On an adjusted basis, in which one-time operational expenses related to the pilots (FC)’s strike totaling $29 million are figured in, (AVI’s (2Q) net loss came to -$6.7 million for the quarter. (AVI) (CEO) Hernan Rincon said the (FC)’s strike’s effects, which were evident in a -6.9% (YOY) decrease in Colombian domestic passenger traffic (as capacity fell -6.8%), “should be mitigated during the 2nd half of this year.”
(AVI) is sticking with its previously announced 6% to 8% (EBIT) guidance range for full-year 2018, though its passenger growth guidance for the year was lowered 2 points to between 5% and 7%. Total capacity growth for the year is expected to fall between 8% to 10%, and load factor for the year was adjusted upward 1 point to between 81% LF and 83% LF.
(AVI)’s 2nd-quarter operating revenue increased +9.8% year-over-year (YOY) to $1.2 billion, (AVI)’s strongest (2Q) revenue since its June 2013 (IPO) on the (NYSE), according to (CFO) Roberto Otero. The rise in revenue was related to a +17% (YOY) average fare increase, the company said, partially offsetting an average +27.1% rise in fuel prices and a +20.1% increase in labor expenses. Total expenses for the quarter were up +14.4% (YOY) to nearly $1.2 billion, leading to an operating profit of +$20.8 million, down -66.5% (YOY).
Additionally, (AVI) recorded a -$5.9 million loss related to non-cash foreign exchange adjustments stemming from currency volatility in both Colombia and Argentina. Infrastructure disruptions during the quarter were related to weather-related multiple-day closure of several airports in Colombia. “Winter was a bit longer than expected ([it] translated into operational challenges for us),” Rincon said.
(AVI)’s 2nd-quarter passenger traffic increased +3% (YOY) to 10.7 billion (RPK)s while capacity increased +2.6% to 13 billion (ASK)s, producing an 82.3% LF load factor, the company’s highest (2Q) load factor since its merger with (TACA) (TAC) in 2010.
In (AVI)’s quarterly results call with analysts August 15, Rincon confirmed (AVI)’s participation in discussions with Panama’s Copa Holdings and Chicago-based United Airlines (UAL) to form a 3-airline commercial partnership. “At this point, we cannot provide any assurances as to whether or when the 3 partners will finalize the agreement,” Rincon said, later adding “we’re doing this primarily [and are] driven by improving the customer experience for travelers that leave Latin America into the [USA] and Canada or vice versa (there are no plans to merge, nobody’s buying anything, nobody’s invested in anybody. But we want to make it feel like there’s only one airline to the passengers).”
Click below for photos:
AVI-787-8 - 1ST DELIVERY 2014-12
AVI-787-8 - 2017-08.jpg
AVI-787-9 - 2016-02.jpg
AVI-A318-111 - 2012-05
AVI-A319 - STAR ALLIANCE 2012-08
AVI-A320neo - 2012-01
AVI-A320neo - 2016-04
AVI-A320neo - A321neo - 2015-02.jpg
AVI-ATR 72-600 - 2013-06
1 727-2H3 (JT8D) (952-20739, /73 HK-3480X), EX-(TUN)/(VLP), LEASED TO (SAM).
0 ORDERS 737-500 (CFM56-3), 5 CANCELED.
30 ORDERS 737-800 (CFM56-7B):
0 747-200 (RR), (PSS) LEASED 2001-06. 2 RETURNED.
1 757-2K2 (RB211-535E4) (608-26635, /94 N635AV "SOLITARIO GEORGE"), EX-(AXY)/(TAV), (GEF) LEASED 2008-12. STORED. WITH WINGLETS. 12F, 159Y.
0 757-2T7 (RB211-535E4) (132-23895, /87 N513NA), EX-(PIE), (TCI) LEASED 2006-03. RETURNED. 12C, 158Y,
0 757-2Y0 (RB211-535E4) (478-26152, /92 EI-CEY; 486-26154, /92 EI-CEZ), (GUI) LEASED, (ETOPS) EQUIPPED. RETURNED 12C, 158Y.
0 757-208 (RGB211-535E4) (281-24760, /90), EX-(ICE), (TCI) LEASED 2005-01. RETURNED. 16C, 173Y.
0 757-23A (RB211-535E4) (611-25494), (ETOPS) EQUIPPED, RETURNED (AWW). 12C, 158Y.
0 757-236 (RB211-535E4) (34-22185, /84 N951PG), EX-(ARE), (PSS) LEASED 2001-06. (22185; 57-23227, /85 N227AN), RETURNED (PSS) 2003-07, 23227 LEASED TO (TAL). 22185 LEASED (AGAIN) 2003-10. 22185 RETURNED 2004-07. 12C, 158Y.
0 757-236 (RB211-535E4) (272-24771, /90 N506NA), (TCI) LEASED 2003-11. RETURNED. 12C, 158Y.
0 757-236 (RB211-535E4) (453-25592, /92 N521NA), (PSS) LEASED 2006-02. RETURNED. 12C, 158Y.
0 757-256 (57-23227, N227AN), (PSS) LEASED 2001-09. RETURNED 2003-07. 12C, 162Y.
0 757-256 (620-26246, N262CT), EX-(IBE), (TCI) LEASED 2002-08. RETURNED 2003-11.
0 757-28A (RB211-535E4) (612-26269, /94 N321LF), EX-(BKL), (ILF) LEASED 1996-11. (ETOPS) EQUIPPED. RETURNED, LEASED TO (AFZ) 2003-08.
0 757-28A (RB211-535E4) (127-23767, /87 N767AN; 204-24260, /88 N517NA), (AWW) LEASED 2003-11. RETURNED. 12C, 158Y.
0 757-28AER (RB211-535E4) (865-28174, /99 N752NA "ALISA FERRARA"), (ETOPS), (NNA) WET-LEASED 2005-12. RETURNED TO (NNA) 2006-10. 24C, 179Y; OR 215Y.
1 767-21BER (PW4060) (407-25421, /92 N421AV), EX-(LAM)/(TBL), (GUI) LEASED. 12C, 158Y.
0 767-259ER (PW4056) (292-24618, /90 N985AN; 321-24835, /90 N986AN "AMERICO VESPUCIO"), EX-(VIE), (PSS) LEASED, (ETOPS) EQUIPPED. 20C, 155Y.
0 767-284ER (PW4056) (303-24742, /90 N988AN "SIMON BOLIVAR"), EX-(RBA), (AWW) 3 YEAR LEASED 1997-02, (ETOPS). 18C, 157Y.
0 767-3YO (PW4060) (380-24948, /91 N948AV), (GEF) LEASED 2004-11. RETURNED; TO (GMG). 32C, 200Y.
0 767-31AER (PW4060) (380-24948, N948AV), EX-(EFZ), (ILF) LEASED 2004-11. RETURNED. 272Y.
1 767-322ER (PW4060) (449-25287, /92 N287AV), EX-(UAL), EX-(PR-ONB). (ONE) LEASED 2009-02. 10F, 38C, 158Y.
0 767-33AER (PW4060) (491-25535, /93 N535AW), EX-(ASY), (AWW) LEASED 2000-11. RETURNED 2003-11. 24C, 224Y.
1 767-383ER (PW4060) (262-24357, /89 N984AN "ASTRID"), EX-(SAS), (PSS) 5 YR LEASED, (ETOPS). RETURNED 2005-03. 24C, 188Y.
3 767-300F, 1 LEASED. 2015. FREIGHTER.
5 +10/10 ORDERS 787-859 DREAMLINER (TRENT 1000) (37506, N784AV, 2015-05; 37509, N791AV, 2016-08). 381 PAX.
4 MD-83 (JT8D-219) (1787-49939, /90 EI-CBR; 1888-49944, /91 EI-CBY; 1889-49945, /91 EI-CBZ "CIUDAD SANTIAGO DE CALI;" 1900-49947, /91 EI-CCD "CIUDAD DE MEDELLIN;" 1964-53120, /92 EI-CFZ), (GUI) LEASED, SHANNON AEROSPACE MAINTENANCE. 53120; RETURNED (ILF) AS (N120MN). 12C, 135Y.
1 MD-83 (JT8D-219) (1898-49946, /91 EI-CCC "CIUDAD DE PEREIRA"), (GEF) LEASED 1992-06. 12C, 135Y.
2 MD-83 (JT8D-219) (49942, EI-CBS; 49947, EI-CCD; 49948, EI-CDY), BOUGHT FROM (GEF) 2010-03. 49948; TO (ACY) 2013-08. 12C, 135Y.
2 MD-83 (JT8D-219) (1984-53122, /92 EI-CEP "SAN ANDRES ISLA;" 1987-53123, /92 EI-CEQ; 1993-53125, /92 EI-CER "CIUDAD DE MONTERIA"), (GEF) LEASED 1992-05. 53122 TO (ACY) 2013. 12C, 135Y.
0 MD-83 (JT8D-219) (2071-53183, /93 N583AN "CIUDAD DE VALLEDUPAR;" 2148-53190, /96 N190AN;), EX-(RNO), (AWW) LEASED, BOTH RETURNED (AWW) 2000-08. 53183 STORED AT MARANA 2009-01, THEN TO (ACY) IN 2013. 12C, 135Y.
1 MD-83 (JT8D-219) (53046, N836RA), (GEF) LEASED 2005-04. 12C, 129Y.
0 MD-83 (2066-53093, /93 N593AN "CIUDAD DE RIOHACHA"), WILMINGTON LEASED 1998-11, EX-(RNO), RETURNED. 12C, 140Y.
1 MD-83 (1603-49632, /89 N632CT), EX-(TTA), (TCI) LEASED 2001-01, PAINTED IN "60TH ANNIVERSARY" LIVERY. PURCHASED OFF LEASE 2006-03. 12C, 118Y.
1 MD-83 (JT8D-219) (2089-53463, N160BS, 2005-09; 2091-53464, N161BS, 2005-10), EX-(JTG)/(ROY), WELLS FARGO LEASED. 53464; RETURNED & LEASED TO AIR BURKINA (VBW) 2009-06.
10 A318-111 (CFM56-5B8/P) (2328, /04 N590EL; 2333, /05 N591EL; 2358, /04 N592EL; 2367, /04 N593EL; 2377, /05 N594EL; 2394, /05 N595EL; 2523, /05 NN596EL; 2544, /05 N597EL; 2552, /05 N598EL; 2575, /05 N589AV), (GEF) LEASED 2011-04. 12C, 88Y.
41/13 ORDERS A319/A320 (CFM56-5B):
6 A319-112 (CFM56-5B6/3) (1612, /01 N612MX; 1618, /01 N618MX; 1634, /01 N634MX; 2066, /03 N992TA; 2662, /06 N266CT), (TCI) LEASED 2008-05. 12C, 108Y.
3 A319-115 (CFM56-5B7/3) (3518, /08 HK-4552; 3647, /08 HK-4553; 3691, /08 N691AV), SOUNDAIR LEASED 2008-11. 12C, 108Y.
5 A319-115 (CFM56-5B7/3) (4200, /10 N422AV; 4222, /10 PR-AVB, 2010-04; 4346, PR-AVD, 2010-07; 5057, /12 N557AV; /12 N519AV; 7284, N751AV 2016-08), 4222; TRANSFERRED TO OCEANAIR/AVIANCA BRAZIL (ONE) 2010-04. 12C, 108Y.
51 ORDERS A320 INCLUDING 33 A320neo (LEAP-1A) AND 18 A321 FAMILY AIRPLANES:
100 ORDERS A320neo FAMILY SEE PHOTO - - "AVI-A320neo A321neo 2015-02":
9 ORDERS (2018) A320neo (LEAP-1B):
1 A320-214 (CFM56-5B4/3) (3408, /08 HK-4549), (TCI) LEASED 2008-02. 12C, 138Y.
35 A320-214 (CFM56-5B4/3) (3664, /08 N664AV; 3961, /09 N961AV; 3980, /09 N980AV; 3988, /09 N988AV; 3992, /09 N992AV; 4001, /09 N401AV; 4011, /09 N411AV; 4026, /09 N426AV; 4046, /09 N446AV; 4051, /09 N451AV; 4100, /09 HK-4659; 4167, /10 N416AV - - SEE PHOTO - - "AVI A320 2010-03;" 4175, /10 N417AV; 4281, /10 N281AV; 4284, /10 N284AV; 4345, /10 N345AV; 4381, /10 N481AV; 4395, N481AV, 2010-08; 4399; 4404, 2010-02; 4547, HC-CJV; 4567, /11 N567AV; 4599, /11 N599AV; 4763,/11 N763AV; 4789, /11 N789AV; 4821, /11 N821AV; 4862, /11 N862AV; 4939, /11 N939AV; 5220, /12; 5632, N632AV, 2013-06; 6411, N740AV, 2015-01), 4379; LEASED TO AEROGAL (ERG) 2010-08 AS (HC-CJM). 4547; LEASED TO (ERG) 2010-12. 12C, 138Y.
10 A321-231 (6190, N697AV; 6219, N725AV, 6861, N747AV), EX-(D-AZAE, D-AZAW & D-AVXO), WELLS FARGO LEASED 2014-08.
2 A321neo (LEAP-1B), (2017-9) AND (2017-11).
2 A330-243 (TRENT 772B-60) (948, /08 N948AC - - SEE PHOTO - - "AVI-A330-2008-09;" 967, /08 N967CG), AIRCASTLE LEASED 2008-11. 948; TO BE WET-LEASED TO (TNM) 2012-11. 30C, 222Y.
10 A330-243 (TRENT 772B) (1009, /09 N968AV; 1016, /09 N969AV; 1073, /09 N973AV; 1208, /11 N974AV; 1224, /11 N975AV; 1279, /12 N279AV; 1342, /12; 1508, /14 N508AV - - SEE PHOTO - - "AVI-A330-243-2014-02"), 1279; TRANSFERRED TO TACA PERU (TCM) 2012-10. 30C, 222Y.
6 A330-200F (TRENT 700), FOR TAMPA CARGO (TMP) OPERATIONS, FREIGHTER.
10/10 ORDERS A350 XWB-800 (TRENT XWB):
4 +11/15 ORDERS ATR 72-600 (1092, HK-4954, 2013-06) (SEE PHOTO - - "AVI-ATR72-600 - 2013-06"), 68Y.
0 F 50 (PW127B) (20278, /93 PH-AVG; 20281, /93 PH-AVH; 20296, /93 PH-AVN; 20297, /93 PH-AVO; 20299, /94 PH-MXS; 20301, /94 PH-MXZ), (DEA) LEASED. 20300; 20301, /94 PH-MXZ; LEASED TO (SAM) 2001-02. 20266; 20285; 20288; LEASED TO (SAM) 2001-04. ALL PHASED OUT 2015 AND SOLD. 52Y.
4 F 100 (TAY 650-15) (11376, /92 HK-4488; 11377, /92 HK-4489; 11413, /92 HK-4578; 11414, /92 HK-4486; 11419, /92 HK-4579; 11449, /93 HK-4445; 11457, HK-, 2006-02; 11458, /93 HK-4444; 11464; 11465, /93 HK-4430; 11467; 11469; 11479, /93 HK-4443; & 11481; 11482, HK-, 2006-02; 11514), EX-(AAL). SYNERGY AEROSPACE LEASED 2010-11. LAST 4 GROUNDED 2014-02. 8C, 89Y.
0 RJ-100, RETURNED 2000-05.
1 +5 ORDERS CESSNA CARAVAN.
2 +4 ORDERS EMBRAER ERJ-145.
0 EMBRAER E190, 2 PHASED OUT IN 2ND QUARTER 2016.
Click below for photos:
AVI-1-Hernan Rincon 2018-07.jpg
AVI-2-Frederico Pedreira - 2016-11.jpg
GERMAN EFROMOVICH, CHAIRMAN & OWNER, AVIANCA HOLDINGS.
ROBERTO KRIETE, CHAIRMAN AVIANCATACA (AVI)/(TAC) HOLDINGS.
FREDERICO PEDREIRA, PRESIDENT AVIANCA.
HERNAN RINCON, CHIEF EXECUTIVE OFFICER (CEO) (2016-04).
Hernan was previously President of Microsoft Latin America.
ALVARO JARAMILLO BUITRAGO, INTERIM CHIEF EXECUTIVE OFFICER
ESTUARDO ORTIZ, EXECUTIVE VP & CHIEF OPERATING OFFICER (COO), RESIGNED 2017-01).
Estuardo resigned and left to become Chief Executive Officer (CEO) of new ultra low cost carrier (ULCC) JetSMART (JSM).
MS SILVIA MOSQUERA, EXECUTIVE VP SALES, MARKETING & REVENUE (2016-10).
ROBERTO HELD OTERO, CHIEF FINANCIAL OFFICER (CFO) (2016-11).
GERARDO GRAJALES, HEAD STRATEGIC BUSINESS UNIT (2016-11).
Gerado was previously Chief Financial Officer (CFO) and VP Finance.
CAPTAIN RENE MARQUEZ (AVI) DIRECTOR FLIGHT SAFETY - SAFETY ADVISOR
FRANCISCO MENDEZ, VICE PRESIDENT TECHNICAL & FLIGHT OPERATIONS.
MIGUEL MONTOYA, VP MAINTENANCE & ENGINEERING (email@example.com).
TOM KERN, VP AIRPLANE SCHEDULING, EX-(DAL) (1998-02).
MAURICIO LEYVA, VP COMMERCIAL & MARKETING.
GUIDO FUENTES, EXECUTIVE OFFICER FLIGHT SAFETY.
CAPTAIN CARLOS SINISTERRA, (AVI) DIRECTOR FLIGHT OPERATIONS.
CAPTAIN LUIS GOMEZ, (SAM) DIRECTOR FLIGHT OPERATIONS.
DAVID ARANA, DIRECTOR ENGINEERING (BOGMDAV) (firstname.lastname@example.org)(email@example.com) (2002-12).
CESAR RESTREPO, DIRECTOR PLANNING & PRODUCTION CONTROL (2002-12).
ORLANDO ZULUAGA, DIRECTOR MAINTENANCE (BOGMEAV),
LUCIO BARBOSA, DIRECTOR HEAVY MAINTENANCE (2002-12).
LUIS VALENCIA, DIRECTOR QUALITY ASSURANCE (QA) (2002-12).
VITTORIO MARCONI, DIRECTOR OPERATIONAL PROJECTS.
JORGE BERNAL, CARGO DIRECTOR.
PABLO GOMEZ, COMMERCIAL DIRECTOR.
HECTOR DAVID HIDALGO MEDELLIN, SAFETY MANAGEMENT SYSTEMS MANAGER.
ALFONSO MEJIA, MANAGER MAINTENANCE.
GABRIAL DAZA, MANAGER ELECTRICAL OVERHAUL SHOPS.
JOSE CASTELLANOS, MANAGER MAINTENANCE CONTROL.
MS LORENA GRAJALES, FLEET PLANNING MANAGER (2002-07).
EDWIN GAITAN, CHIEF POWERPLANT ENGINEERING (2000-03).