Colombia's largest airline Avianca is poised to announce plans for a wide-ranging tie-up with El Salvador's Grupo TACA.
The deal will be seen as a response to plans by Avianca's main southern competitor, the Chilean LAN group, to exchange shares with TACA, its main northern competitor. Avianca started this month to integrate the operations of its Brazilian affiliate Ocean Air, converting it into a unit managed directly by the airline allowing for a code share agreement on several Ocean Air domestic trunk routes.
In August, Avianca successfully completed a bond offering of more than 500 billion pesos ($250 million) on the Bogotá stock exchange aimed at partly financing its fleet renewal. The newly raised cash could also provide a source of funding for a possible takeover or a merger.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment