Avianca Airlines are seeking merger and various international partners
In addition to attracting various international partners, Efromovich brothers continue to seek a merger between the two Avianca, which would create a single airline that would fly across South America.
Holdings SA Avianca Avianca of Colombia and Brazil, the two airlines controlled by the Efromovich brothers, are looking for different international partners while maintaining long – term goal of fusion, said Jose Efromovich.”We are under confidentiality agreements” and many companies have shown interest, Efromovich, president of Avianca Brasil said in an interview in Sao Paulo. “We are looking for a partner anywhere in the world. In the Middle East, Europe, the United States and the Americas.Everything is possible, but has to make sense. ”
Avianca Holdings hired Bank of America Corp. as a consultant, Efromovich said. He refused to identify who is advising the company closed capital of the brothers owns Avianca Brazil, or provide any other details of the negotiations.
Earlier this year, Delta Air Lines Inc., United Continental Holdings Inc. and Copa Airlines SA made non-binding offers for a minority stake in Avianca Holdings, Bloomberg reported last week. There is no guarantee that an agreement is reached.
Avianca Holdings which has a market value of US $ 832 million, carried 61% of the more than 15 million passengers from Colombia until July. The airline based in Bogotá, whose president is Germán Efromovich, offers potential buyers an entry point to markets which also include Peru, Costa Rica and Ecuador.
The Efromovich brothers continue to seek a merger between the two Aviancas, which would create a single airline that would fly across South America.
This combination would give Delta and United a way to make further inroads in Brazil to compete with American Airlines Group Inc., which has an alliance with Latam Airlines Group SA. Avianca Brazil controls about 11% of the Brazilian market.
“It can happen in a month or can happen in five years, but it will happen,” said Jose Efromovich. “This is normal, is rational, this was the goal from the moment that all this was conceived.”
The agreement in Colombia does not guarantee entry to Brazil. The Efromovich brothers have tried unsuccessfully tocombine the two Aviancas in the past. The Colombian airline, which is in better shape than Brazilian counterpart, rejected the proposal in October, reported at the time Bloomberg News.
“We are skeptical about a merger of Avianca Holdings and Avianca Brazil , ” he wrote Wednesday in a report to clients analyst Bradesco BBI , Victor Mizusaki, arguing that in the past attempts to merge the two companies were thwarted because of opposition from another shareholder of the Colombian airline veto.