Avianca Holdings has confirmed it will seeking closer commercial cooperation with United Continental Holdings Inc.
In a statement to Colombia's securities regulator (Superintendencia Financiera de Colombia - SFC), Avianca said that having considered submissions put forward by other parties, known to be Delta Air Lines (DL, Atlanta Hartsfield Jackson) and Copa Airlines (CM, Panamá City Tocumen International), its Board of Directors had now authorized it to carry out all necessary analyses required for a potential strategic alliance with United Airlines (UA, Chicago O'Hare).
"United and Avianca have a long history of partnership through Star Alliance, and we look forward to enhancing our cooperation to provide even better service for our customers," Scott Kirby, president of United, said in a communique. "Deepening our relationship allows us to expand on our existing Star Alliance and strategic partnerships in the region as we continue building a great network in Latin America."
As part of the agreement, Avianca's Brazilian parent, Synergy Aerospace Corp., will inject up to USD200 million into the company. The capitalization will be open to all Avianca Holdings' shareholders, including preferred shareholders, it said.
Synergy added that it is also seeking to merge Avianca Holdings with its other unit, OceanAir Linhas Aéreas S/A, the Brazilian carrier which operates under license as Avianca Brasil (São Paulo Congonhas).
