Avianca Brazil To Keep GECAS A320s For Now

January 18, 2019

Avianca Brazil has won a temporary reprieve in court allowing it to continue operating 10 Airbus A320s leased from GECAS.

Brazil’s civil aviation regulator ANAC had moved to cancel the registration of the A320s after GECAS petitioned for their return for non-payment of lease fees.

ANAC said the aircraft would be withdrawn from the Aeronautical Registry within five days, and the airline required to return them to GECAS immediately.

But after a Friday court hearing, ANAC announced that Avianca Brazil and GECAS had agreed “that the leasing of the aircraft to Avianca would continue.

“As a result of the agreement reached at the hearing, GECAS filed with ANAC an application for suspension of the litigation for cancellation of registration of aircraft previously filed.”

The suspension of the procedure to cancel the registrations, means Avianca can continue to operate the 10 aircraft. ANAC said there is also no restriction on the sale of tickets.

Avianca Brazil filed for bankruptcy protection in December as aircraft lessors sought to recover outstanding lease payments or repossess aircraft. The airline was subsequently given a 15-day relief period by a Brazilian court.