Avianca postpones remaining Boeing 787s amid orderbook shake up
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Avianca has rejigged its Airbus and Boeing orderbooks, including a deal that effectively postpones its remaining Boeing 787 Dreamliner commitments indefinitely.
Under a “fleet optimization” plan released Tuesday, Bogotá-based Avianca reached a “mutually beneficial agreement” with Boeing regarding its remaining 787-9 orders, the airline said in a statement. Other aspects of the plan include cancelling some of its orders for Airbus A320neo family jets, while agreeing to lease some of the European-manufactured narrow-bodies.
Avianca spokesperson Marta Marcela Alvarenga declined to comment further on the Boeing deal, except that Avianca is “comfortable” with its current fleet of 13 787s.
At the end of September, the carrier had commitments for three 787-9s due through 2021, according to its third quarter financial statement. Avianca operated 12 787-8s and one -9 at the time.
The apparent changes to Avianca’s 787 orders come as Boeing faces a rapidly dwindling Dreamliner backlog. The Chicago-based planemaker cut production of the 787 by two aircraft a month to 12 in October, citing weak demand and the U.S. trade war with China.
Avianca is in the early innings of a two-year effort to strengthen its balance sheet. Unveiled in mid-2019, the plan calls for streamlining the airline’s fleet, reducing costs, and expanding its Bogotá (BOG) hub by 2021.
Part of this effort is a proposed three-way — possibly four-way — partnership with Copa Airlines and United Airlines, and maybe Azul, covering U.S. routes. The pact could boost passenger traffic — and revenues — for Avianca over its Bogotá hub.
In addition to the 787 order changes, Avianca has restructured its A320neo family commitments with its next delivery of the narrow-body jets potentially postponed until 2023. That’s when deliveries begin under a new 12-aircraft deal with BOC Aviation to lease A320neos disclosed Tuesday.
The carrier has cancelled 20 of its own orders for for the A320neo family. Avianca will resume deliveries of its remaining commitments for 88 jets in 2025.
“The completion of these three major aircraft transactions… places Avianca in a solid position as it moves forward with the Avianca 2021 plan,” said Avianca chief financial officer Adrian Neuhauser in a statement.
Boeing declined to comment on the agreement with Avianca.
Featured image by Avianca.
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees