Avianca renegotiates fleet backlog delivery with potential to defer 50 narrowbodies

Avianca Holdings stated (14-Nov-2018) it continues to experience pressure from increased fuel costs as well as macroeconomic challenges in certain regions and is "addressing these challenges through its strategic decision related to the current aircraft order back log, its corporate structure and future CAPEX needs in order to establish a strong foundation to deliver future growth and long term margin expansion". Avianca Holdings CEO Hernan Rincon stated: "We are renegotiating our fleet backlog to significantly reduce the pace at which we incorporate new aircraft into our fleet… we aim to potentially defer up to 50 narrowbody aircraft while reassessing the status of an additional 50 aircraft". He added that all projects and contracts with strategic partners and lessors are under review to drive cost efficiencies with minimal near term capital expenditure. The carrier is "focused" on optimising its network by cancelling less profitable routes and redeploying freed capacity. [more - original PR]