Newly named Colombian airline group Alianza Summa, formed from the integration of Colombian carriers ACES, Avianca and SAM earlier this month, expects to generate up to $100 million in annual savings within a year.

The individual carriers lost $156 million on revenues of $800 million last year.

Chief executive Juan Emilio Posada told the AvNews international airline chief executive conference in Miami this month that, by the end of this year, Alianza Summa expects to see $476 million in revenues. It also expects to post earnings before interest, taxes, depreciation and amortisation of $50 million by 2003. He expects revenues to grow to more than $885 million by 2005.

Savings will primarily come from synergies in route networks and improved aircraft deployment, according to Posada. ACES' Airbus A320 family aircraft will be redeployed from short domestic flights to routes of over 2h to destinations such as Lima and San Jose. The Fokker 50s and ATR 42s will similarly be reallocated, Posada said. Alianza Summa is in talks to expand the fleet, but will stop flying its three Boeing 727s, he added.

Alianza Summa is structured as a limited liability corporation. Legally, the airlines will remain three distinct companies, but operationally will be a single structure, Posada said. A total merger is "a realistic solution down the road".

Source: Flight International