Avianca Holdings renegotiates incorporation of Airbus aircraft

Avianca Holdings renegotiate incorporationón of Airbus aircraft and establishes a new aircraft delivery schedule.

As part of the restructuringón and changes that the group isá doing to improve its operational and economic resultsómonkeys, the airíNea announced the results of the renegotiationón of the existing aircraft order with the European manufacturer Airbus.

Among the results of the same, Avianca released the following results:

• The agreement defers the date of incorporationón of 35 planes and gates 17 of the existing Avianca order.
• The decelerationón in incorporationón of the fleet, agreed with Airbus, allows Avianca Holdings to reduce financial commitments by más of USD 2.6 thousands of millions, así how to improve your cash flow for prówe went three toños.
• This negotiationón is the first adjustment step in the Holding's fleet structural strategy that alsoás includes the sale of the Embraer fleet and the transfer of the ATR fleet to the new Aerolíwhat to serveá the regional market sunéstico in Colombia.

This negotiation processón, which is not specifiedó the time it tookó, to allowá to the compañíto a reductionón in their financial commitments for más of USD 2.6 billions and the preservationón of cash resources per USD $350 million for the period 2020-2022.

This negotiationón occurs within the framework of the transformation planón corporate recently presented during the socializationón of the financial results of the yearñO 2018. As well indicatedó, The new strategy seeks to migrate from a growth model to one of profitability and operational efficiency.

Spaghettién, The signing of the agreement allows the postponement of the arrival of 35 A320Neo aircraft originally planned for the period 2020-2022 and the cancellationón of the incorporationón of 17 A320Neo aircraft, that were contemplated in the existing order of A320 aircraft agreed with Airbus in the añO 2015.

It is important to note that the aerosolídon't continueá incorporating fleet throughout the followingños, in accordance with the operating plan of Avianca Holdings. This adjustment in the fleet order is part of the reduction processódebt and generationóbox number announced on the úlast presentationón of financial results before investors.

Finally, readjustment in the Holding's fleet plan also includesén the following measures:

• Embraer fleet sale: following its standardization objectiveón and simplificationón of the fleet, and as was well announcedó in díthe past in the presentón of financial results of the 2018, the compañíhas decided to put its entire Embraer fleet up for sale 190 (ten planes). The routes that were originally served by this type of aircraftón now beán operated by Airbus A320 family fleet.
• Transfer of the ATR fleet 72: will moveá the ATR fleet to the new aerolíHolding line specialized in customer serviceón of the regions of Colombia. Said compañía, Regional Express Americas, startó operations the past 01 of March.
  The airline fleetínea has an average age of 7 años, which makes it one of the fleets más jóyou come from all over América. This has been achieved thanks to the incorporation strategyón of aircraft developed during the úlast toñI allowed themó on 2018 that Avianca met the goal of núnumber of available aircraft that was projected for the 2020.

Other measures, focused on ácommercial field to beán informed próximately in this space, as part of the process of changing the short-term objectives of Avianca.