With the coronavirus pandemic raging through the world, the aviation industry is facing unprecedented times. South Korea, one of the…
Avianca Brasil Assets Auctioned to GOL and LATAM
Avianca Brasil’s asset auction took place generating more than US$147 million this week. Azul, GOL and LATAM were eligible to take part in the dispute but only GOL and LATAM came to bid. Azul said it would not participate “for not believing in the legitimacy of the process.”
As part of its recovery plan, the company has proposed dilution of its assets between 7 Isolated Productive Units (UPIs), auctioned in batches. Within these UPIs, slots are considered the main attraction for buyers. The auction is considered essential so that the company can raise the necessary resources to avoid bankruptcy.
Avianca Brasil has been in the process of judicial recovery since the end of last year, and it holds auctions on its assets, including timetables for landings and take-offs (slots), even after the São Paulo Court of Justice authorized the National Civil Aviation Agency (ANAC) to redistribute them among other airlines.
The sale of slots is prohibited in Brazil. By law, the distribution of these landing and take-off rights from one company to another can only be made by ANAC. However, it is permissible for companies in the same group to transfer slots to each other and, therefore, the transfer of Avianca slots to the UPIs is legal.
At the end of June, ANAC was barred from redistributing slots on the grounds that, without flight schedules, the company would not have relevant assets to auction.
The results of the auction were the following:
Batch A – GOL won for US$ 70 million. The batch consists of 20 slots at GRU, 12 at SDU, and 18 at CGH.
Batch B – LATAM won for US$ 70 million. The batch consists of 26 slots at GRU, eight slots at SDU, and 15 at CGH.
Batch C – LATAM won for US$ 10 million. The batch consists of six slots at GRU, six slots at SDU, and eight slots at CGH.
Batch D – GOL won for US$ 10 million. The batch consists of six slots at GRU, four slots at SDU, and four slots at CGH.
Batch E – GOL won for US$ 7.3 million. The batch consists of six slots at GRU, four slots at SDU, and nine slots at CGH.
Batches F and G did not receive any offers.
- Embraer Fiscal Year Financial Results ‘Below Expectations’ - March 30, 2020
- Lufthansa Group Offering New Waiver Policy for Rebooking - March 6, 2020
- British Airways Starts Codeshare with Royal Air Maroc - February 14, 2020
Three hours and 32 minutes after pushing back from the gate at Tulsa International Airport, Compass flight 6047 pulled into…
With demand for air travel practically vanishing due to the COVID-19 pandemic, airlines around the world are trying to find…