UPDATE 4-Avianca Brasil files for bankruptcy, citing jet repossession threat [Reuters]
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Source: Reuters
Avianca Brasil files for bankruptcy, citing jet repossession threat | Reuters 4 Min Read SAO PAULO (Reuters) - Brazil’s fourth-largest airline, Avianca Brasil, filed for bankruptcy protection on Monday, saying its operations had been threatened by potential repossession of aircraft, which could prevent the carrier from continuing to operate. The unlisted airline said in its bankruptcy filing that leasing companies seeking to take back some 30 percent of its all-Airbus fleet threatened its ability to fly some 77,000 passengers in December. The aircraft are still under Avianca Brasil’s control for now and it remains unclear what their fate will be as the carrier is asking a Brazilian court to allow it to keep the planes for now. The airline said in the filing it largely blamed high fuel prices and a strong dollar for its troubles. Latin American airlines, which have to pay a large part of their routine expenses - including fuel - in dollars while billing their customers in more volatile
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