Avianca Envisions Robust Future with Fleet Renewal and Confidence in GOL’s Recovery
At the Routes Americas 2024 conference in Bogotá, Avianca’s CEO, Frederico Pedreira, expressed unwavering confidence in Brazilian airline GOL’s ability to emerge successfully from the Chapter 11 bankruptcy process. Drawing on Avianca’s own experience with Chapter 11, from which it emerged in December 2021, Pedreira highlighted the leadership similarities between the two airlines, hinting at a promising outlook for GOL and the broader Abra Group, which encompasses both airlines.
The formation of the Abra Group in May 2022 represented a strategic alliance aimed at strengthening the airlines’ positions in Latin America. Despite the challenges posed by GOL’s recent bankruptcy filing in the U.S., the commitment of $950 million in debtor-in-possession financing from bondholders underscores the group’s potential for resilience and growth.
Pedreira acknowledged that some initiatives might face delays due to the complexities of the Chapter 11 process but remained optimistic about the vision of a robust Abra Group across the region. This alliance is poised to continue its development, reflecting a shared belief in its success.
Turning the focus to Avianca, the airline is undergoing a significant transformation, simplifying its fleet to enhance competitiveness against low-cost carriers (LCCs) and meet the rising demand for business-class travel to Europe. Avianca’s fleet currently comprises Airbus A320neo and ceo family aircraft along with Boeing 787s, marking a shift from a previously more diverse fleet that included ATRs and A330s.
The future fleet strategy involves a gradual transition from ceo to neo models, balancing efficiency with the practicality of retaining older versions in certain markets. With an order of 98 A320neos and options for 50 additional aircraft, Avianca’s fleet renewal is set to begin in earnest in 2025, according to Pedreira.
In addition to fleet modernization, Avianca is committed to enhancing its on-time performance (OTP), having achieved a notable 10-point improvement from 2019 to 2023. This focus on reliability forms the cornerstone of Avianca’s transformation, aiming to lower operational costs and offer more affordable fares to its passengers.
With 32.4 million passengers served in 2023, Avianca sets an ambitious target of reaching 40 million passengers in the current year, reflecting its strategic efforts to improve service efficiency and expand its market presence.
As Avianca and GOL navigate their respective paths towards recovery and growth, their collaboration within the Abra Group signifies a strategic pivot towards a more integrated and efficient future in the Latin American aviation landscape.