Brazilian haulier Azul has entered a non-binding agreement to acquire certain assets of bankrupt airline Avianca Brasil in a $105m records.
The deal comprises 70 pairs of airport slots and Avianca’s certification as an airline big-time operator in Brazil.
Under the agreement, Azul will also acquire 30 Airbus A320 aircraft from Avianca.
In a communication, Azul said: “As provided by the Brazilian Bankruptcy and Judicial Reorganization Law, the assets determination be transferred to a new entity free and clear of all debts and liabilities.”
Azul contemplates the completion of the transaction to take up to three months.
“The assets will be took to a new entity free and clear of all debts and liabilities.”
Avianca filed for bankruptcy immunity in a Brazilian court last December after aircraft lessors prayed the company to repossess its fleet.
The repossession was in response to the carrier’s failure to pinch payments on many of its aircraft and posed a serious threat to the continuation of controls.
The bankruptcy petition was aimed at enabling the continuation of flight operations.
According to Reuters, a adjoining court has allowed Avianca to continue to have possession of the aircraft.
The decides hearing the aircraft leasing companies’ appeal have postponed in the main for an additional two weeks.
Sources told the news agency that Azul thinks fitting provide as much as $40m to Avianca Brasil to help the carrier be met by its operating expenses until April.
One of the sources added that the behave will enhance Azul’s presence at Congonhas, Sao Paulo’s domestic airport.
Azul already acquired two Airbus A320 levels previously operated by Avianca. The aircraft were repossessed in December due to Avianca’s dereliction to pay the leasing companies.