The long struggle of Avianca Brasil came to a forced landing or perhaps a gained a respite last Friday when Brazilian regulator ANAC suspended operations at the airline’s request. Airport slots stand as Avianca’s remaining asset, but they represent merely permissions it must exercise to maintain control and cannot sell, but only transfer to another airline. Avianca entered Chapter 11 bankruptcy protection in December and started this year with 53 aircraft. Courts stalled lessors’ efforts to repossess aircraft until a creditors’ assembly approved a plan in April, after which time aircraft owners successively repossessed their assets. Meanwhile, Avianca cut routes until, with no more than six aircraft available, it appealed for the suspension, which might preserve its rights to the slots. In January the airline employed 5,563 people and by the end of May only 2,687, many who hadn’t received pay for two months. The bankruptcy administrator plans to cut payroll by a further 1,000 in June.
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