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Avianca Holdings renegotiates the incorporation of Airbus aircraft and establishes a new aircraft delivery schedule.
As part of the restructuring and changes that the group is making to improve its operational and economic results, The airline announced the results of the renegotiation of the existing aircraft order with the European manufacturer Airbus.
Among the results of the same, Avianca released the following results:
- The agreement defers the date of incorporation of 35 planes and gates 17 of the existing Avianca order.
- The slowdown in fleet incorporation, agreed with Airbus, allows Avianca Holdings to reduce financial commitments by more than USD 2.6 thousands of millions, as well as improve your cash flow for the next three years.
- This negotiation is the first adjustment step in the Holding's fleet structural strategy, which also includes the sale of the Embraer fleet and the transfer of the ATR fleet to the new airline that will serve the domestic regional market in Colombia..
This negotiation process, that the time it took was not specified, will allow the company a reduction in its financial commitments by more than USD 2.6 billions and the preservation of cash resources per USD $350 million for the period 2020-2022.
This negotiation takes place within the framework of the corporate transformation plan recently presented during the socialization of the financial results of the year 2018. As well indicated, The new strategy seeks to migrate from a growth model to one of profitability and operational efficiency.
Too, The signing of the agreement allows the postponement of the arrival of 35 A320Neo aircraft originally planned for the period 2020-2022 and the cancellation of the incorporation of 17 A320Neo aircraft, which were contemplated in the existing order for A320 aircraft agreed with Airbus in the year 2015.
It is important to highlight that the airline will continue to add fleet over the following years, in accordance with the operating plan of Avianca Holdings. This adjustment in the fleet order is part of the process of debt reduction and cash generation announced in the last presentation of financial results to investors..
Finally, readjustment in the Holding's fleet plan also includes the following measures:
- Embraer fleet sale: following its objective of fleet standardization and simplification, and as was announced in recent days in the presentation of financial results of the 2018, The company has decided to put its entire Embraer fleet up for sale 190 (ten planes). Routes that were originally served by this type of aircraft will now be operated by the Airbus A320 family fleet..
- Transfer of the ATR fleet 72: The ATR fleet will be transferred to the Holding's new airline specialized in serving the regions of Colombia. said company, Regional Express Americas, started operations last 01 of March.
The airline's fleet has an average age of 7 years, which makes it one of the youngest fleets in all of America. This has been achieved thanks to the fact that the aircraft incorporation strategy developed in recent years allowed, in 2018 for Avianca to meet the goal of the number of available aircraft that was projected for the 2020.
Other measures, focused on the commercial field will be informed soon in this space, as part of the process of changing the short-term objectives of Avianca.
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Profitability is what keeps companies flying, That is why you have to take care of your income and expenses..
Totally and you have to be realistic about the situation of any company., if you can't continue growing, You have to slow down a little and recover your income..