Brazilian carrier Azul Airlines announced Monday (Mar. 11) it has signed a $105 million deal for the acquisition of assets of Avianca Brasil, including planes and slots (the right to land or take off at congested airports). The transaction is said to encompass the right for Azul to use 30 Airbus 320 aircraft from Avianca’s fleet and the concession of 70 airport slots currently occupied by Avianca.
The move is founded on the Brazilian Bankruptcy Law for the sale of profitable assets of companies with financial difficulties. Avianca would therefore be split up, and part of the company bought by its competitor.
The deal is non-biding, but may lead to a bulky investments for Avianca, which has been undergoing “judicial recuperation,” with debts adding up to some $130 million.
Azul also reported that the deal awaits a probe on Avianca’s assets. The purchase will also have to be approved by watchdogs as well as Avianca’s own creditors. These steps are likely to last three months.
