Brazil's Azul has signed a deal to purchase key assets of financially troubled Avianca Brazil, including 30 Airbus A320-family aircraft, for up to $105 million.
Azul has also agreed to take over Avianca Brazil's air operator's certificate and 70 pairs of airport slots.
"The offer is nonbinding and remains subject to a number of conditions precedent, including due diligence, regulatory and creditors' approvals, and the conclusion of Avianca Brazil's judicial reorganisation," says Azul, estimating that the process could take up to three months.
Avianca Brazil filed for bankruptcy protection in December 2018, as it faced threats of aircraft repossession by lessors.
Azul says the purchased assets will be transferred to a new entity free of all debt and liabilities.
Earlier this year, Azul took over two Airbus A320neos previously operated by Avianca Brazil when the struggling airline shed part of its fleet. Azul had earlier denied that it was in talks to purchase Avianca Brazil, following local media reports that Azul founder David Neeleman was considering making an offer for the airline.
Avianca Brazil has 45 aircraft in service, Cirium's Fleets Analyzer shows. These include 25 A320s and seven A320neos. The airline operates to more than two dozen destinations in Brazil, and previously announced plans to end most of its international services to the USA and Chile beginning 31 March.