Avianca Brasil Explained

Airline:OceanAir Linhas Aéreas S.A.
Iata:O6
Icao:ONE
Callsign:OCEANAIR
Founded: (as OceanAir)
Ceased: (suspended)
(bankrupt)
Secondary Hubs:São Paulo–Congonhas
Frequent Flyer:Programa Amigo
Alliance:Star Alliance (2015-2019; affiliate)[1]
Revenue:US$720 million (2019)
Fleet Size:6
Destinations:4
Parent:Synergy Group
Headquarters:São Paulo, Brazil
Key People:Frederico Pedreira (President)
José Efromovich (CEO)
Num Employees:1,687 (2019)[2]

Avianca Brasil S.A. (Portuguese: Avianca Brasil), officially Oceanair Linhas Aéreas S/A, was a Brazilian airline based in Congonhas Airport in São Paulo, Brazil.[3] [4] According to the National Civil Aviation Agency of Brazil (ANAC), which cancelled its operation, prior to cessation of operations, from January to December 2018 Avianca Brasil had 13.4% of the domestic and 7.3% of the international market share in terms of passengers per kilometer flown,[5] making it the fourth-largest airline both in domestic and international traffic in Brazil. The company slots (landings and take-off permits) were redistributed by Anac. An auction on 10 July 2019 raised R$555.3 million, not enough to pay a debt of R$2.7 billion, although Avianca's bankruptcy was not officially decreed.[6]

History

OceanAir

The airline was established on 30 June 1998 as an air taxi company to operate services for oil companies in the Campos Basin. Its name was then OceanAir and began to operate scheduled services in 2002, between São Paulo, Rio de Janeiro, Macaé and Campos. Soon afterwards, it became better known to the public with a scheduled flight (no longer operated) connecting São Paulo–Congonhas Airport in São Paulo and Santos Dumont Airport in Rio de Janeiro via São Paulo–Guarulhos International Airport, enabling international passengers from both cities easy access to the country's largest international hub from those cities' more convenient central airports. At the time, OceanAir's fare between São Paulo's airports was cheaper than a taxi and on par with a luxury bus ride.

In 2004, Synergy Group, the owner of the airline, bought the Colombian airline Avianca, which was undergoing judicial reorganization. As a result, OceanAir became a feeder for Avianca's flights into Guarulhos. This partnership between the two airlines increased the flow of passengers between Colombia and Brazil. Synergy Group also bought VIP as part of a strategy to create a continent-wide airline under the Avianca brand. In November 2005, a joint venture formed by OceanAir (49%) and Fondo de Inversiones Sustentables (51%) created a new Peruvian airline called Wayraperú, but the airline suspended operations a few months later until it was re-established later in 2018.

OceanAir started operating international flights in 2007 with three Boeing 767-300ERs and a Boeing 757-200, but by April 2008, the flights were discontinued because of increase in operating costs. Since then, the airline has concentrated its efforts on the Brazilian domestic market only. 5 Airbus A330s and 30 Airbus A320s were ordered in 2010, a contract worth US$ 2,5 billion. With this fleet growth, Efromovich intended to control 15% of the Brazilian air market in the next decade, including routes to Mexico, Colombia, Africa and the United States.[7]

Avianca Brasil

On 9 October 2009, Synergy announced that TACA Airlines and Avianca would merge. This merger increased OceanAir's feeder operations, already implemented with Avianca in São Paulo, to include TACA in São Paulo, Rio de Janeiro–Galeão International Airport, Santos Dumont Airport, Salgado Filho International Airport in Porto Alegre and Presidente Juscelino Kubitschek International Airport in Brasilia.

On 26 March 2010, Germán Efromovich announced the rebranding of OceanAir as Avianca Brasil. However, OceanAir Linhas Aéreas remained as the legal name of the airline.[8] This allowed the Synergy group to further align the operations of OceanAir and Avianca.[9] The first aircraft with the new name started operations on 27 April 2010.[10] The only notable differences between the aircraft of Avianca Colombia and those of Avianca Brasil are the latter's Brazilian registrations and a small Brazilian flag under their cockpit windows.

On 10 November 2010, Star Alliance decided to accept AviancaTaca Holding to join the network as a member airline. However, Avianca Brasil was rejected at the time due to its outdated IT platforms and an objection by TAM Linhas Aéreas, which since left Star Alliance to join Oneworld after merging with LAN Airlines.[11] Upon TAM's exit, Avianca Brasil officially joined Star Alliance on 22 July 2015 as an affiliate.[12]

On 11 October 2016, the airline took delivery of the first of 8 Airbus A320neos being leased from GECAS.[13] Independent from Avianca, the airline increased its market share from 3% in 2009 to 14% in 2018, becoming Brazil's fourth-largest carrier.

Bankruptcy

On 10 December 2018, Avianca Brasil filed for bankruptcy protection, R$ 100 million (US$26 million) was owed to airports and bank debt grew by 50% in 2018, while United Airlines extended a loan of US$456 million to Avianca owner Synergy Group.[14] Total debts amount to 493 million reais (US$127 million), whereas the first half of 2018 generated 175.6 million reais of losses.[15] On 18 April 2019 Azul cancelled its offer to buy Avianca Brasil, but resubmitted the offer on 13 May.[16] [17] On 24 May 2019, ANAC suspended flights of Avianca Brasil, due to security reasons.[3] On 24 June 2019, its suspension was officially written in the official Diary by Anac.[18] On 10 July 2019, the auction generated US$147,32 million or R$555,3 million from Gol Linhas Aéreas Inteligentes and LATAM Brasil, if valid, however the debts are R$2.7 billion.[19]

On 20 August 2019, Star Alliance announced Avianca Brasil's exit from the alliance from 1 September 2019. The departure, however, didn't affect Avianca's membership.[20]

On 14 July 2020, Avianca Brasil filed for bankruptcy in court.[21]

Corporate affairs

Even though the legal name of the airline remained as OceanAir, it was re-branded as Avianca since it was owned by Synergy Group, which owns Avianca Holdings.[22] The original Avianca of Colombia and Avianca Brasil remained separate legal entities, but in February 2017, it was reported that Avianca Holdings planned to obtain the necessary regulatory approvals to fold Avianca Brasil into Avianca Holdings.[23] Its current CEO, Frederico Pedreira, took office in April 2016. José Efromovich, younger brother of Germán Efromovich, President of Avianca Holdings, who had led the company since 2008, took office as chairman of the Board of Directors on the same date.[24]

Destinations

Avianca Brasil operated the following flights at the time of its suspension of operations in May 2019.[25] [26]

The list includes destinations operated under the former name OceanAir.

CountryCityAirportNotesclass=unsortableRefs
Alta FlorestaAlta Floresta Airport
AracajuSanta Maria Airport
BelémBelém/Val-de-Cans International Airport
Belo HorizonteBelo Horizonte International Airport
BrasíliaBrasília International Airport
Campo GrandeCampo Grande International Airport
ChapecóChapecó Airport
CuiabáMarechal Rondon International Airport
CuritibaAfonso Pena International Airport
FlorianópolisHercílio Luz International Airport
FortalezaFortaleza Airport
Foz do IguaçuFoz do Iguaçu International Airport
GoiâniaGoiânia International Airport
IlhéusIlhéus Jorge Amado Airport
Ji-ParanáJosé Coleto Airport
João PessoaPresidente Castro Pinto International Airport
Juazeiro do NorteJuazeiro do Norte Airport
MaceióZumbi dos Palmares International Airport
ManausEduardo Gomes International Airport
NatalAugusto Severo International Airport
Greater Natal International Airport
NavegantesNavegantes Airport
Passo FundoLauro Kurtz Airport
PetrolinaPetrolina Airport
Porto AlegreSalgado Filho Porto Alegre International Airport
Porto VelhoGovernador Jorge Teixeira de Oliveira International Airport
RecifeRecife/Guararapes–Gilberto Freyre International Airport
Rio de JaneiroRio de Janeiro/Galeão International Airport
Santos Dumont Airport
Salvador de BahiaSalvador Bahia Airport
São PauloSão Paulo–Congonhas Airport
São Paulo/Guarulhos International Airport
VitóriaEurico de Aguiar Salles Airport
SantiagoArturo Merino Benítez International Airport
BogotáEl Dorado International Airport
CancúnCancún International Airport
Mexico CityMexico City International Airport
LimaJorge Chávez International Airport
MiamiMiami International Airport
New York CityJohn F. Kennedy International Airport

Former codeshare agreements

Avianca Brasil had codeshare agreements with the following airlines:[27]

Fleet

As of May 2019, the Avianca Brasil fleet included the following aircraft.[30]

Avianca Brasil fleet
AircraftOut of
service
OrdersPassengersNotes
C YTotal
Airbus A318-1003 - - 120120All Scrapped (PR-ONC, PR-ONI and PR-AVJ)[31]
Airbus A319-1002 - - 1321321 stored at Congonhas Airport (PR-AVD)
1 returned from lease (PR-AVB)
Airbus A320-2001 - - 162162Taken by LATAM Brasil (PR-OCW)
Total6 -

Retired fleet

Avianca Brasil had formerly operated the following aircraft:[32] [33]

Retired Avianca Brasil fleet
AircraftTotalIntroducedRetiredNotes
Airbus A320neo1220162019Returned to owners due to default.
All later went to Azul Brazilian Airlines.
Airbus A330-200620142019
Airbus A330-200F120142019Transferred to Avianca Cargo
Beechcraft C901
Boeing 737-300320072009Purchased from BRA Transportes Aéreos
Boeing 757-200120072008Transferred to Avianca
Boeing 767-300ER320072008
Embraer EMB 120 Brasilia720022008
Fokker 50520032008
Fokker 1001620052017Purchased from American Airlines
Learjet 35A119982004
Learjet 45120042019
Learjet 55C119992010

Frequent-flyer program

Avianca Brasil had a frequent-flyer program called Programa Amigo.

Accidents and incidents

See also

External links

Notes and References

  1. Web site: Avianca Brasil. Star Alliance. 25 February 2016.
  2. Web site: Avianca Brasil deve demitir cerca de 1 mil funcionários em junho. 1 June 2019. G1. pt.
  3. Web site: Anac anuncia suspensão das operações da Avianca Brasil. 24 May 2019. G1. pt.
  4. News: Directory:World Airlines. Flight International. 58. 10 April 2007.
  5. Web site: Demanda e oferta do transporte aéreo. 23 January 2019. 29 January 2019. Agência Nacional de Aviação Civil (ANAC). pt. 19 December 2018. https://web.archive.org/web/20181219011315/http://www.anac.gov.br/assuntos/dados-e-estatisticas/demanda-e-oferta-do-transporte-aereo. dead.
  6. Web site: Justiça dá aval para Anac redistribuir slots da Avianca. 6 July 2019. DN. pt.
  7. Exame Magazine, 18 December 2006
  8. News: Eduardo. Laguna. OceanAir passa a se chamar Avianca. Valor Online. São Paulo. 26 April 2010. 27 April 2010. pt.
  9. News: Jardim. Lauro. Panorama: Radar: Aviação. Veja. 53. 17 March 2010. pt.
  10. News: Avianca. OceanAir agora é Avianca. https://web.archive.org/web/20100429091734/http://www.avianca.com.br/empresa/site/quemsomos.asp. dead. 29 April 2010. 27 April 2010. 27 April 2010. pt.
  11. Web site: Will an Azul-TAP partnership skew the alliance dynamics in Brazil as Avianca Brazil joins Star?. CAPA Centre for Aviation. 26 February 2016.
  12. Web site: Leiro. Roberto. Avianca Brasil Joins Star Alliance. Airways News. 26 February 2016. dead. https://web.archive.org/web/20150914073350/http://airwaysnews.com/blog/2015/07/22/avianca-brasil-joins-star-alliance/. 14 September 2015.
  13. Avianca Brazil. Airliner World. December 2016. 17. 25 November 2016.
  14. News: Avianca Brasil Files for Bankruptcy. Richard Pedicini. 12 December 2018. AIN online.
  15. Web site: Brazilian airline Avianca Brasil declares bankruptcy. 12 December 2018. The Jakarta Post.
  16. Web site: Azul proposes fresh bid for Avianca Brazil assets News Flight Global.
  17. Web site: Azul desiste de oferta pela Avianca Brasil e acusa rivais de protecionismo. 18 April 2019. G1. pt.
  18. Web site: Concessão da Avianca Brasil é oficialmente suspensa pela Anac. 24 June 2019 . 24 June 2019. Panrotas.
  19. Web site: Gol e Latam arrematam direitos de vôo da Avianca em leilão. 10 July 2019. G1. pt.
  20. Web site: Avianca Brasil to Exit Star Alliance. Star Alliance. 19 August 2019. 25 August 2019.
  21. Web site: Avianca Brasil tem falência decretada pela Justiça. G1.globo.com. 14 July 2020 . pt. July 14, 2020.
  22. Web site: Avianca Costa Rica Book Flights and Save . 2023-01-22 . www.alternativeairlines.com . en-GB.
  23. Web site: Avianca Holdings: United Air partnership and Synergy infusion raise more questions than answers. CAPA. 15 February 2017. 16 February 2016.
  24. News: 2020-08-19 . UPDATE 3-Avianca's majority shareholders arrested in Brazil on accusations of corruption . en . Reuters . 2023-01-22.
  25. Web site: Avianca: Mapa de rotas. Avianca Brasil. Portuguese. 31 March 2019. https://web.archive.org/web/20120408143646/http://www.avianca.com.br/empresa/site/mapaderotas.asp. 8 April 2012. dead. dmy-all.
  26. Web site: Avianca Update. 20 April 2019. Avianca Brasil. pt. 20 April 2019.
  27. Web site: Profile on Avianca Brazil . CAPA. Centre for Aviation. 2016-11-01. https://web.archive.org/web/20161101155142/http://centreforaviation.com/profiles/airlines/avianca-brazil-o6 . 2016-11-01. live.
  28. News: Nuovo code share per Alitalia, accordo con Avianca Brasil . 28 June 2018 . ttgitalia.com. 28 June 2018. it. New codeshare agreement for Alitalia with Avianca Brazil.
  29. Web site: Etihad, Avianca Brasil ink new codeshare. Dron. Alan. June 17, 2016. Air Transport World. dead. https://web.archive.org/web/20160617214620/http://atwonline.com/airports-routes/etihad-avianca-brasil-ink-new-codeshare. June 17, 2016.
  30. Web site: Avianca Brasil Fleet Details and History. planespotters.net. 19 December 2019.
  31. Web site: Airbus A318 Production List. planespotters.net. 19 December 2019.
  32. Web site: OceanAir Fleet Details and History. planespotters.net. March 31, 2021.
  33. Web site: OceanAir fleet. aerobernie.bplaced.net. February 20, 2021.
  34. Web site: Accident description. Aviation Safety Network. 12 August 2010.
  35. Web site: Accident description. Aviation Safety Network. 28 March 2014.
  36. Web site: Interview: Written-Off Fokker 100 to Become Pan Am-Themed Restaurant. Airlinegeeks.com. João Machado. August 22, 2020.
  37. Web site: Accident description. Aviation Safety Network. March 4, 2019.