Avianca Holdings has had a very bad time and has suffered a real failure on the stock market after its subsidiary in Brazil adopted a bankruptcy protection plan.
This complicated situation will force the company to cancel flights between Dec. 10 and Dec. 31, which will affect 77,000 passengers due to the threat of removing 14 aircraft, according to documents published by Reuters.
Avianca Brazil is hit by high fuel costs and demands that threaten part of its aircraft, the agency said.
The procedure, which takes place in the first chamber of bankruptcies and judicial investigations in Sao Paulo, is kept secret.
Last week, the airline was forced by Brazilian justice to return 11 aircraft from its fleet to the Irish Constitution Aircraft, a subsidiary of American Aircastle, for non-payment in the lease.
According to court sources, three other debt actions were filed by suppliers against the fourth-largest airline in Brazil.
This company and Avijana Colombia are owned by the conglomerate controlled by German-based Efromic, an aero-conferencing investor born in Bolivia, which last week signed a $ 456m loan from the United Continental Holdings airline.
Avianca Holdings dropped 17.54% on the stock exchange in Bogota, but later the paper reduced losses to just 1%.
But what a person loses, capitalizes on another. Latam Airlines, which has a significant operation in Brazil, jumped 4.74% on the Santiago Stock Exchange, while Gol reached 13.04% and was the best performing stock on the Sao Paulo Stock Exchange. today
In the same vein VICTOR VIVA, the investment analyst of VICTORIA CAPITAL, commented that "the strong growth of the paper is based on the collapse of Brazilian subsidiary Avianca in Brazil, which implies less competition in the Brazilian market, allowing the rest of the sector to register strong increases.