American leasing company Aircastle will repossess 11 aircraft currently leased to Avianca Brazil.
Connecticut based Aircastle has terminated the leasing contracts for ten Airbus A320-200 and one A330-200 and is taking steps to get the aircraft back from Avianca Brazil. “Aircastle had been working through a delinquent receivables issue with Avianca Brazil,” the company said in a filing with the US Securities and Exchange Commission.
The Airbus A330-200 has an age of about four years, while the A320s are on average 3.5 years old.
On December 7th, a Brazilian court had ordered Avianca to return eleven aircraft to their lessors.
In reaction to this dispute, Aircastle has reduced its revenue expectations by more than five million US dollars.
Avianca Brazil (officially called Oceanair Linhas Aereas Ltda.) is the fourth largest airline in Brazil. It is a subsidiary of Synergy Group, the company that owns Avianca Holdings, which holds Colombian Avianca, along with several Avianca-branded central-American sister airlines. Avianca Brazil currently operates 53 aircraft, including Airbus A320, A320neo and A330. The airline received its first A320neo in October 2016 and plans to take delivery of ten Airbus A350-900, starting in 2020.
Jakob Wert is an aviation journalist from Germany. He built up the website IFN.news and is the Editor-In-Chief of International Flight Network.