Ecuador

Key decisions loom in 2012 for Avianca-TACA as integration effort nears completion

The spotlight in Latin America this year will primarily be shone on LAN and TAM as the two airline groups complete their landmark merger and begin the integration process. But it is also a key year for Avianca-TACA, which completed their merger in early 2010 and has completed about 90% of its integration process.

The integration of Avianca and TACA will be wrapped up this year as the carrier formally joins the Star Alliance, completing two major milestones for the fast-expanding airline group. Several major decisions also loom for the group in 2012 related to its corporate structure, branding and fleet.

Structurally, a decision will likely be made by the end of this year on whether to bring Avianca Brazil into the publicly traded holding company Avianca-TACA. The Brazilian carrier is still owned by the Synergy Group, the holding company controlled by the Efromovich family which also owned Avianca prior to its merger with TACA (the Efromovich family now has a majority share in Avianca-TACA Holding). As a result, Avianca Brazil remains separate although it has a co-branding arrangement with Colombia-based Avianca.

Paris 2011: Avianca-TACA accelerates expansion with neo, plans fleet of more than 160 A320s

Avianca-TACA has decided to expand its acquisition of A320-family aircraft to drive further expansion in the second half of this decade at its various subsidiaries throughout Latin America. The airline group used the Paris Air Show to sign a memorandum of understanding on 22-Jun-2011 for 18 additional A320s and 33 A320neos.

Oversubscribed Avianca-TACA IPO provides another indicator of buoyant Latin American industry

Preliminary results from Avianca-TACA’s initial public offering (IPO) show a strong appetite for Latin American airline stocks. The offer period for Avianca-TACA shares expired on 15-Apr-2011 with a healthy five to one oversubscription ratio.

Avianca-TACA enjoys profitable first year as merged entity

Avianca-TACA is confident of a successful debut on the Colombian stock exchange after a profitable first year as Latin America’s fourth largest airline group. Colombia-based Avianca and El Salvador-based TACA completed their historic merger in early 2010, creating the fourth largest airline group in Latin America after LAN, TAM and Gol.

Why don't women run airlines?

IT WAS INTERNATIONAL WOMEN’S DAY on the 8th of March, 2010, and the Indian Ministry of Civil Aviation proudly “acknowledged” flag carrier Air India’s historic flight between Mumbai and New York JFK. It was unique that day in that flight AI-141 operated with an all-female flight crew on the B777-200LR. There was no Air India man in sight. It was different at head office.

(This report, the first in a series of four, is taken from the Oct-2010 edition of Airline Leader.)