Azul has signed a non-binding agreement with Avianca Brasil to acquire 70 pairs of airport slots and approximately 30 Airbus A320 aircraft for the indicative purchase price of up to US$105 million.
Under Brazilian Bankruptcy and Judicial Reorganization Law, the assets will be transferred to a new entity free and clear of all debts and liabilities (NewCo). The proposed NewCo solely includes the slots and aircraft as well as Avianca Brasil’s operating certificate.
The offer is non-binding and remains subject to a number of conditions precedent, including due diligence, regulatory and creditors approvals, and the conclusion of Avianca Brazil’s judicial reorganization. Azul estimates that the process could take up to three months to be concluded.