Plan Avianca 2021: aircraft sales, airlines and more

The plan Avianca 2021 accelerates the aircraft sale and divestment processón in business not strataémagical as they were littleñas aerolíneas del Holding.

During the second quarter of 2019, Avianca Holdings rushesó the transformation strategyón “Avianca 2021”, which seeks to strengthen the competitiveness of the companyñíby implementing strict financial adjustments, operational optimizations, simplifyón of fleet and sales of non-stratified assetsélogic.

Redefine itón del norte stratuméAvianca Holdings' strategic plan is essential given the accelerated growth of the organization.ón in the úlast toños, added to a challenging macroeconomic environmentóeconomy and industry marked by the rise in fuel prices, the devaluationón of regional currencies, así like the contractionón of demand.

Financial Results 2Q2019

The figures más relevant so far 2019 are the following:

• The compañía transportó 7,55 million passengers during the second trimester, growing a 2,7% in comparisonón with the same period of 2018. Similarly, consolidó an employment factorón of 81,8%.
• during this trimester, Avianca increaseó its capacity measured in ASK´s (chairs available per kiloóflown meter) on 4,7%. For his part, travelers paid per kiloóflown meter (RPK´s) increased a 4,1%.
• Finally, the cost per available chair per kiloóflown meter (CASK-ex fuel), contracted 6,7%, tightly, when arriving at US6.1 centsfor the period.
• Operating revenues stood at USD1.1 billion, registering a decreaseón of the 6,9% compared to the first quarter of 2019.
• Yield was USD 8,4 cents, presenting a decreaseón of 9,2%.
• With the registeró, and EBIT de -USD36 million and an EBITDA of USD116.4 million (excluding non-recurring charges)*

Sale of non-stratified assetsélogic

• Getcom: sale of 100% of the participationón in Getcom Int'l Investments S.L (50% of total shares), compañíContact Center and BPO services, a Seger Investments Corp.
• CAE:  sale of 100% to participateón in the flight simulator training business; which includedó the sale of certain assets and all of the shares (50%) what if you haveía en Avianca-CAE Flight Training (ACFT) S.A.S. The Holding effectedó the sale to the company CAE International Holdings Ltd, which already owned the 50% rest of this company.
• SANSA and La Costeña: sale of 100% of the participationón in these aerosolílines that provide services to the interior of Costa Rica and Nicaragua. for this sale, about USD were received 15,5 millions.
• ongoing transactions: the sale of the 100% of haste and 42% travel Ésuccess.

Simplifyófleet number

Progress is made in the deceleration strategyófleet entry and simplificationón of the same. added to the renegotiationón con Airbus of the first trimester, that allowedó a reductionón of USD2,6 billions in financial commitments and protectionón in cash resources USD350 millions.  further, During the second quarter, sales contracts were signed for a total of 39 planes (including those associated with the sale of AerolíNeas Sansa and La Costeña):

• output of 13 cessna aircraft 208 and two (2) ATR 42 Due to the sale of aerosolsíNeas Sansa and La Costeña.
• Sales 14 320 family aircraft to the compañía estadounidense Fortress Transportation and Infrastructure Investors LLC.
• The sale of the entire Embraer fleet (10 planes).

The fleet sale will haveá delayed effect during the rest of the yearñO. With these transactions, Avianca Holdings closeá the 2019 approximately with 156 planes, what to implyá a reductionón of its fleet of about a 21%, and consequently the reorganizationón of the offer to be más consistent with the demand. Además, hornbeamá significantly simplified its operationón, both in maintenance costs, as in inventories and crew training.

Optimizationón of operational profitability

Network adjustment is one of the main actions implemented so far this year.ñO. The modifications were made to serve those with greater demand and better performance.ñO. For this reasonón, they were canceled 25 routes and frequencies were reduced. The adjustments took place mainly in the Central American marketsérica, NorteaméRica and Peruú. Similarly, is redistributedó capacity on some routes, increasing flights from Bogotá in Cali, Averageín, Bucaramanga, Santiago de Chile, Orlando-United States and Barcelona-Spainña, looking forí locate resources on routes más rentables.

Prósoon it will be possibleíto wait for closure of several frequencies from Lima and Cali, Santa Cruz and others.

Performanceñor Business Units

The business units contributed to the total income of the 2Q in a 16%:

• Avianca Cargo: continúlike the líder of the Colombian market with the 38,3%, and like the third compañíat Miami International Airport with a participationón of the 13,7%.
• LifeMiles: highlights the growth of the membership base in a 10,7%, surpassing the 9,2 millions of associates. from the other side, the program closedó the period with 537 Business partners throughout Américh latina.