BOGOTA, Colombia, April 24, 2019 /PRNewswire/ -- Avianca
Holdings S.A. (NYSE: AVH, BVC: PFAVH) today announced that Hernán
Rincón Lema has notified the Avianca Holdings Board of Directors
that he plans to retire from the Company effective April 30, 2019 after three years serving as the
Company's Chief Executive Officer.
Mr. Rincón's announcement, which was made upon completion of his
third year as Avianca's CEO, is aligned with the Company's ongoing
long-term strategic and organizational development program, as part
of a planned transition. Mr. Rincón joined Avianca to lead the
Company's transformation process, which he has successfully
accomplished, contributing to Avianca Holdings strategic evolution
and positioning the Company for continued success for the next
century ahead.
"We thank Hernán for his numerous important contributions to
Avianca Holdings over the past three years, notably leading
Avianca's successful joint venture agreement with United Airlines,
which was transformational for the Company," German Efromovich,
Avianca's Chairman of the Board. "Hernán is interested in pursuing
other strategic opportunities, having successfully ushered Avianca
into its next phase. While we will miss him, we support his
ambitions as part of our planned transition."
"I'm proud to have contributed to the strategic evolution of
Avianca Holdings over the last three years," said Mr. Rincón.
"Avianca's successful long-term strategic commercial alliance with
United Airlines and the modernized and technology-focused strategy
we have in place cements Avianca's leadership position as a
world-class international airline, and sets the stage for its
success in years to come."
With extensive experience working with multinational software
and technology companies, Mr. Rincón led Avianca's digital
transformation; successfully positioning Avianca as a world-class
international company. Under his direction, an ambitious corporate
reorganization process and a strengthening of the Company's
Corporate Governance was also successfully executed. Further, the
Avianca brand has been consolidated globally; the Company signed a
transformational strategic and commercial alliance with United
Airlines and with Copa Airlines; Avianca's Regional Express
Americas regional airline startup carrier was created to strengthen
Colombia's connectivity; and in
2017 the Company weathered the longest illegal pilot strike in the
history of commercial aviation.
During the fourth quarter of 2018 and the first quarter of 2019,
Mr. Rincón executed the most ambitious business transformation plan
in the Company's history, enabling Avianca to evolve from a growth
model to an operating model focused on profitability and cost
efficiency, with a goal of deleveraging and strengthening the
Company's financial position to deliver margin expansion.
As part of this plan, Avianca successfully simplified and
streamlined its aircraft fleet as part of its six-pillar
restructuring plan; phasing out its Embraer aircraft and
transferring its turboprop aircraft to more profitable routes on
Regional Express Americas and optimizing network profitability.
Further, Avianca successfully renegotiated and sold its
non-strategic assets, as well as the cancellation and deferral of a
portion of the current A320 family order with Airbus.
Pursuant to our bylaws and Amended & Restated Joint Action
Agreement, we have already retained a third-party international
consulting firm to assist us in searching for a successor for Mr.
Rincón. Our board of directors has resolved that, if a successor
Chief Executive Officer is not appointed prior to the departure of
Mr. Rincón, our Secretary Mr. Renato
Covelo, who has been acting as Legal Vice President and
General Counsel since December 2016,
shall become our interim Chief Executive Officer until a successor
has been appointed. In the meantime, Mr. Richard Galindo, who has been acting as Legal
Director since February 2017 will
become our interim Secretary.
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SOURCE Avianca Holdings S.A.