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Avianca Brasil, the fourth largest airline in Brasil, filed for bankruptcy protection on Monday after three aircraft lessors sued the carrier for return of close to 30% of its all-Airbus fleet of about 50 aircraft.
- According to Avianca Brasil statement, the bankruptcy filing came a result of a failure to reach a “friendly settlement.”
- Avianca blames rising fuel cost, currency fluctuations, and the depressed Brazilian economy for its financial difficulties.
- Reuters reported that a Brazilian bankruptcy judge late on Tuesday granted a request by the country’s fourth-largest airline, Avianca Brasil, to suspend lawsuits seeking repossession of at least 14 of its aircraft, according to a court document.
Who is Avianca Brasil?
- Avianca Brasil is not a subsidiary of a Colombian airline although it is also held by Synergy Group.