Tuesday , August 9 2022

The failure & # 39; Avianca Brazil departs free way to Latam


Avianca Brasil was the intention of the dealer Germán Efromovich – Colombian & # 39; Bolivian origin Brazilian nationalized – launched to deliver a carrier Colombian flag f & # 39; regional representative, at the height of & # 39; Latam Airlines.

Efromovich, through its company Syngery Group, acquired in 2009 Oceanair, company started offering taxi service air to provide services to the oil sector and finished fourth & # 39; player in & # 39; that industry in Brazil.

The company then began to deploy to Brazil and, from today, operates 55 aircraft, offering 26 domestic destination in & # 39; that country, 4 out of Brazil and carries more than 290 daily flights. Efromovich, in turn, is an indirect controller & # 39; Avianca Holdings, based in Colombia, which controls operations in Ecuador, El Salvador and Peru. Strictly speaking, Avianca Avianca Brasil Holdings and are part of the same group, but they share their main shareholder and, moreover, are in the process of joining.

All were in & # 39; yesterday risk, after Avianca Brasil accepted figure & # 39; bankruptcy protection, a situation that forces the company to cancel flights between 10 and 31 & # 39; December, affecting about 77,000 passengers, because of the threat of & # 39; removed 14 planet, according to the documents reported by Reuters.

The measure seeks to reduce the risk of losing an important part of its fleet, close to 20%, because of legal conflicts with the aircraft owners. "It is a measure of & # 39; protection, to save time", says Ricardo Delpiano aeronautical expert.

The big winner

And though, the dream turning into Avianca & # 39; regional representative is not completely rejected – remains to be seen if the movement in Brazil is a & # 39; success – Latam appeared as the big winner. This, mainly because it remains & # 39; the only player with & # 39; regional vocation, a situation that was read well by the market. In fact, yesterday the local company shares increased by & # 39; 4.74% and 1.28% were already advancing. Nevertheless, accumulating year reduction & # 39; 20.28%. However, its price is near & # 39; $ 7,000 per card exceeds the price at which Qatar Airways entered the property group, which now has 10% of Latam property.

But another relevant point is that possible reductions in the activities & # 39; Avianca Brasil – a company that has 12% of the Brazilian market – options open to its competitors there: Azul, GOL and Latam own, gaining more grounds.

"Everything depends on how it has evolved Avianca Brasil, whether reducing her or not fleet. And if this happens, it is very possible, because they will freeze, so opportunities for competition, Blue, Gol and Latam. Latam has international routes like Miami, Santiago and New York and is best positioned to take advantage of this opportunity. that is why the markets reacted favorably, "adds Delpiano.


The history of the two companies and their arrival in Brazil go in & # 39; to. One year after the creation of & # 39; Avianca Brasil, in 2010, LAN Airlines then formalized her union with & # 39; TAM, the largest airline operator in Brazil and the Amaro family owned. The association has enabled the national team to enter the largest regional market, and added these operations & # 39; those who have already had in Ecuador, Argentina, Peru and Colombia. Then become one of the older historical its owners: to become a regional operator.

But the bet did not go well. As the merger materialized in 2012, Brazil began to show signs of the economic crisis, a serious social and institutional that was working, and it can not yet come. Does & # 39; it was added that the union was not easy, given the size of & # 39; TAM – Brazil is by far the largest market in the region – the challenge of integrating these operations and incorporates LAN seal in its operations was very complex.

"As we see great opportunities for growth, we are also aware that the fusion processes are not easy. On the contrary, we know that there are many challenges and learned to face. Particularly relevant in & # 39; this sense is our organizational -isfida, because the association & # 39; LAN and TAM involves team ", said then that the president & # 39; Latam Airlines, Mauricio Amaro.

At the same time, the other competitors also grew, but many also had serious difficulties. This is the case, for example, the TACA, which opened its subsidiary in Peru, or COPA, which came in Colombia and also sought to become a regional competitor. B & # 39; contrast, the Brazilian GOL hit by the crisis in & # 39; that country – only this year began to recover – and Aerolineas Argentinas, once again been restored, only generated costs for the Argentine government for many years.

But with & # 39; parallel, another phenomenon began to take shape: the low cost. The first adopted this model was SKY Airline, family related company PAULMANN and also aims to become a regional player. Latam suitable for this and also changed the sales model of its tickets, by modifying the structure of its fare increase luggage charges in cheap. But despite this, insists that since Latam not and will not be "low cost".

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