Avianca, Kingsland Withdraw Lawsuits Over United Tie Up
Colombian airline group Avianca Holdings has agreed with second largest shareholder Kingsland Holdings to withdraw their respective lawsuits over a proposed alliance with United Airlines.
Avianca said in a US SEC filing that the parties had agreed to withdraw the lawsuits filed in New York State Supreme Court. The joint filing with the court dismissing the actions was made without prejudice.
Kingsland said it and the other parties agreed to discontinue litigation “in order to continue to focus on ongoing business negotiations that, if successful, would resolve their outstanding differences.”
United announced in late January that it was working with Avianca Holdings and Avianca Brasil to develop their commercial and strategic relationships. Kingsland sought an injunction in March to halt the United/Avianca tie up, saying the deal was one-sided.
Avianca said it will continue to negotiate a strategic alliance with United Airlines, hoping to complete an agreement by the end of the year.