BOGOTA, Colombia, July 11, 2019 /PRNewswire/ -- Avianca Holdings
S.A. (NYSE: AVH, BVC: PFAVH) today announced that under its
"Avianca 2021" strategy, the new management of Avianca Holdings is
rapidly advancing in the execution of a plan to strengthen the
company's competitiveness and implement necessary financial
adjustments.
One of the fundamental pillars of the plan is operational
efficiency. Since November of last year, the company has begun a
systematic effort to improve punctuality, achieving measurable
improvement. It will continue to make changes in itineraries,
routes, schedules and frequencies and, working with the Colombian
aeronautical authority, simplify its operation and provide a better
service to customers.
Roberto Kriete, Chairman of the
Board of Directors stated: "Supported by Kingsland, which since
May 24 assumed control of the
company, and with the know-how of United, strategic partner of
Avianca, the airline will continue to make decisions that recover
and strengthen the confidence of our clients and investors." He
stressed that the Avianca 2021 plan reclaims the essence of the
company: "We are, first and foremost, an airline."
In parallel, the new Chief Financial Officer (CFO) of Avianca
Holdings, Adrian Neuhauser, who will
lead the financial execution of the "Avianca 2021" plan, has met
with various strategic partners of the airline. According to
Neuhauser, "the goal of the 2021 strategy for Avianca Holdings is
to achieve sustainable and competitive growth, doubling current
operating margins while maintaining disciplined capital
investments, generating consistent cash flow that would achieve
conservative leverage levels by 2021. In the immediate term, the
re-profiling of our debts is essential to ensure adequate
liquidity."
The new administration trusts that with the decisions that have
been made and a coherent and professional execution of the plan,
Avianca´s strategic, commercial and financial allies will support
the company in achieving the required adjustment and re-profiling
of its obligations. "Negotiations are being held in a positive
context and we have found that both financial institutions and our
suppliers are receptive. At this historic juncture for Avianca, it
is essential to ensure their confidence in us while we decrease our
leverage and improve profitability. We aim to be more competitive
while we continue delivering the best service to our customers,"
said Neuhauser.
About Avianca Holdings
Avianca is the
commercial brand that groups together the passenger and cargo
transport airlines grouped in Avianca Holdings S.A. It has been
flying 100 years in an uninterrupted way. With a fleet of 175
aircraft, it offers a route network composed of 76 destinations in
27 countries in the Americas and Europe. With its more than 21,000 employees,
the Holding entered in 2018 USD 4.8
billion and transported 30.5 million passengers. On February 22, 2019, Avianca presented its
corporate transformation plan consisting of four pillars: 1)
improve operational indicators, 2) adjustments in the fleet plan,
3) optimization of operational profitability, and 4) divestment of
non-strategic assets. On May 24,
control of the company was assumed by Kingsland Holding Limited as
an independent third party of United Airlines.
About Kingsland
Kingsland Holdings Limited is a
shareholder of Avianca Holdings with 40 years of aviation
experience. Kingsland is chaired by Roberto
Kriete, who has been part of the Board of Directors of
Avianca Holdings S.A. since 2010. He was the founder of Volaris, a
pioneer of TACA and president of the Latin American Air Transport
Association.
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SOURCE Avianca Holdings S.A.