Airline

Avianca seeks capital injection

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Avianca seeks capital injection

It has been reported by the Wall Street Journal that United Continental and Delta Air Lines are considering bids for Avianca.

Avianca is seeking a capital injection of $500 millon in return for equity, which could result in the full sale of the company, according to sources quoted by the WSJ.
The group also runs a loyalty program, a logistics business, airport and maintenance services and runs tours. It sold a 30% stake in the loyalty business to a private-equity investor last year.

Avianca named Hernán Rincón Lema, a Microsoft Corp. executive in Latin America, as its new chief executive in March to replace an interim CEO who had stepped in after longtime chief Fabio Villegas resigned in January.

A majority of the Avianca common stock is owned by Synergy Group, which is controlled by Germán Efromovich, while the Kriete family that controlled Taca holding has 14.5%.