Avianca Brazil Aircraft To Be Repossessed

Connecticut-based aircraft lessor Aircastle will repossess 11 aircraft it has on lease to Avianca Brazil.

Aircastle said in a filing with the US Securities and Exchange Commission that it has “began exercising remedies to repossess ten A320-200 and one A330-200” Airbus aircraft.

It had previously disclosed that it had been “working through a delinquent receivables issue with Avianca Brazil” and it is “in remarketing discussions with several potential customers.”

The A320-200s to be repossessed have an average age of 3.5 years and the A330-200 is 4.1 years old, the company said.

Aircastle said the lease terminations will have an impact on it’s quarterly results, with updated guidance of between USD$182 million and $184 million in lease rental revenue, down from previous guidance of $187 million-$191 million.

Media reports also indicate that parent Avianca Holdings wants to renegotiate a purchase agreement for 100 Airbus A320neos. The Airbus orders website shows that seven have already been delivered, with three currently in service.