Avianca Renegotiates Aircraft Commitments With Airbus, Boeing

Avianca’s  (NYSE: AVH; BVC: PFAVH) management has negotiated the following agreements to tailor its aircraft commitments to its future requirements as part of the implementation of its “Avianca 2021 Plan:”

In cooperation with Airbus, the Bogotá based airline has reduced its firm commitments to 88 A320neo aircraft, down from 108

• Previously scheduled firm A320neo family deliveries in 2020 through 2024 have been deferred or cancelled
• The 88 remaining commitments are now scheduled for delivery in 2025 through 2028, at 20 per year, with the balance of 8 aircraft in 2029
• These agreements provide comprehensive financial benefits, with significant Capex reduction in the period through the end of 2024

Separately, Avianca has agreed to enter into 12-year operating leases for up to 12 A320neo aircraft with BOC Aviation, with deliveries to occur after 2023, consistent with the Avianca 2021 Plan.

Finally, Avianca reached an agreement with Boeing with regards to the outstanding 787-9 deliveries

“The completion of these three major aircraft transactions, coupled with the recently completed financial reprofiling and securing of $375 million of new long-term capital financing, places Avianca in a solid position as it moves forward with the Avianca 2021 Plan,” CFO Adrian Neuhauser said.