A São Paulo appeals court has voted 2-1 in favour of allowing a creditor-approved Oceanair Linhas Aéreas S.A. t/a Avianca Brasil (O6, São Paulo Congonhas) asset sale to resume.

The auction was to have gone ahead in early May only to be delayed by a court injunction secured by Swissport Brasil Ltda., a creditor of the now-dormant carrier, that had questioned the legality of the sale of Avianca Brasil's slots arguing they were concessions and not assets.

According to a court statement, of the three judges who heard the appeal, Judge Ricardo Negrão voted to uphold the injunction until it had been proven that there were no illegalities in Avianca Brasil's judicial recovery process.

However, Judges Mauricio Pessoa and Sérgio Shimura considered that there was no cause to continue the suspension in light of the damage the airline and its creditors had already incurred as a result.

The renewed sale will go ahead on July 10.

Under the plan put forward and backed by LATAM Airlines Brasil, GOL Linhas Aéreas Inteligentes and Elliott Management, Avianca Brasil's largest creditor, a total of six isolated business units (Unidade Produtiva Isolada - UPI - or NewCo) will contain various Avianca Brasil slots at São Paulo Guarulhos, Rio de Janeiro Santos Dumont, and São Paulo Congonhas while a seventh UPI will hold its loyalty program.

  • UPI A: 20 slots at Guarulhos, 12 slots at Santos Dumont, and 18 slots at Congonhas;
  • UPI B: 26 slots at Guarulhos, 8 slots at Santos Dumont, and 13 slots at Congonhas;
  • UPI C: 6 slots at Guarulhos, 6 slots at Santos Dumont, and 8 slots at Congonhas;
  • UPI D: 6 slots at Guarulhos, 4 slots at Santos Dumont, and 4 slots at Congonhas;
  • UPI E: 6 slots at Guarulhos, 4 slots at Santos Dumont, and 9 slots at Congonhas;
  • UPI F: 23 slots at Congonhas;
  • UPI Amigo Plan: Membership database and contacts related to the program.

Companies such as Globalia Linhas Aéreas, Passaredo Linhas Aéreas, TwoFlex Táxi Aéreo Inteligente, and Sideral Linhas Aéreas (looking to connect Congonhas with Rio de Janeiro Santos Dumont and Brasilia) have all shown an interest in acquiring the UPIs. Gol and LATAM Airlines Group have both confirmed they will make separate minimum offers of USD70 million for at least one of the UPIs.