Avianca Holdings reported that it operated 82 aircraft of its property at the end of 2020, this is 17 less than a year earlier.
Headquartered in Bogotá, Colombia, the company is a holding company incorporated in Panama after the combination of Avianca and Taca in October 2009.
Currently, Avianca is the second largest airline in Latin America.
On May 10, 2020, Avianca filed a voluntary petition for relief from chapter 11 under title 11 of the United States Code, a process that continues today.
Low-cost airline business models have gained market share in Latin America in recent years, particularly as challenging regional macroeconomic conditions persist and affect consumer purchasing power.
For example, VivaAir Group and Wingo in Colombia, GOL Linhas Aéreas and Azul in Brazil, Viva Aerobus and Volaris in Mexico, JetSMART in Chile and Flybondi in Argentina show this trend.
At the end of 2020, the company operated a fleet of 143 aircraft (132 passenger aircraft and 11 cargo aircraft), 82 of which were owned by it, 61 of which were subject to long-term leases and one to a short term crewed lease.
For its cargo operations, Avianca operated two 767F-200S, six Airbus A330F and three A300F.
Also as of December 31, 2020, the average age of its operational passenger fleet was 8.11 years while that of cargo was 17.45 years.
The company’s operating aircraft are subject to long-term leases, require monthly lease payments, and have purchase options at the end of the lease.
Avianca is generally responsible for the maintenance, service, insurance, repair and overhaul of your leased aircraft.
Under some of its lease agreements, the company is required to make supplemental rental payments to aircraft leasing companies as deposits to secure overhaul work on leased aircraft and are disbursed to cover overhaul costs.
These funds are reimbursed to you to pay for scheduled reviews.