Azul bids for Avianca Brasil assets
12 / 03 / 2019
Brazilan airline Azul has signed a non-binding agreement with financially troubled Avianca Brasil to acquire its operating certificate, 70 pairs of slots and about 30 Airbus A320 aircraft.
The $105m offer remains subject to a number of conditions, including due diligence, regulatory and creditors approvals. The airline filed for judicial recovery (similar to Chapter 11 in the US) in December, since when it has been trying to secure new funding.
In a statement, Azul emphasied that “as provided by the Brazilian Bankruptcy and Judicial Reorganization Law, the assets will be transferred to a new entity free and clear of all debts and liabilities (“NewCo”).
Azul, which is the largest airline in Brazil if measured by number of departures and destinations, said the process could take up to three months to be concluded.