Avianca Wants To Relocate Its Address To The United Kingdom

The Colombian carrier Avianca is planning to move its address to the United Kingdom, in order to obtain…

Avianca Wants To Relocate Its Address To The United Kingdom

The Colombian carrier Avianca is planning to move its address to the United Kingdom, in order to obtain greater tax benefits post its Chapter 11 bankruptcy process. If approved by the US bankruptcy court, this decision would create a new company called Avianca Group International Limited. What does this mean for the future of Avianca? Let’s investigate further.

Avianca could create a company in the UK called Avianca Group International Limited. Photo: Daniel Martínez Garbuno | Simple Flying.

Avianca Group International Limited

Despite being an airline with origins in Colombia, Avianca currently has its legal address in Panama. Nevertheless, it has Air Operator Certificates in countries like Colombia, El Salvador, Costa Rica, Ecuador, and even had in Peru. Those certificates won’t be impacted if Avianca relocates its address to the UK. The headquarters won’t be moving either to Europe.

Avianca moving its legal address to the UK would be a financial decision.

Avianca said,

“The proposal to settle the new holding company in the UK is based on the fact that the rules and decisions of the Chapter 11 process are recognized in that region. Thus, the new domicile does not imply any change in the operation or presence of an airline in its jurisdictions.”

Adrian Neuhauser, Avianca’s CEO, added that the UK won’t create any additional tax burden or inefficiencies against the current infrastructure.

Avianca HQ
Avianca’s main headquarters would remain in South America. This building is the headquarter in Bogota, Colombia. Photo: Daniel Martínez Garbuno | Simple Flying.

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Could it happen?

Avianca has just recently announced its plans to move its address to the UK to gain greater tax benefits. It is a part of its restructuring plan from the Chapter 11 bankruptcy process, so it has to be approved by the US court.

According to Bloomberg, Avianca’s decision surprised the judge overseeing the company’s proceeding. This judge is said to be unhappy with Avianca’s decision to move its address to the UK and not disclose it sooner.

Additionally, Avianca Group International Limited would create new stocks, allowing the company to pay its creditors and Chapter 11 fundings. In the meantime, Avianca Holdings, the current company based in Panama will continue to exist, but the stocks will remain null of any value.

Most likely, the judge will approve Avianca’s Chapter 11 restructuring plan, allowing the company to move its address to the UK.

Avianca
Avianca will retire its passenger Airbus A330 fleet. Photo: Daniel Martínez Garbuno | Simple Flying.

How’s Avianca’s recovery going?

Avianca is currently benefitting from Colombia’s open borders. The airline has been gradually increasing its operations in South America.

According to Cirium’s database, Avianca has scheduled 13,075 flights in November. That’s a 36.1% decrease compared to 2019 levels. Nevertheless, when taking into account only the Colombian domestic market, Avianca will operate at 75% of its pre-pandemic levels. Avianca expects to reach pre-pandemic capacity by April 2022.

Avianca’s most important routes are in the Colombian domestic market. The carrier has scheduled 549 flights between Bogota and Medellin (although that’s a 25% decrease compared to 2019 levels).

These are Avianca’s most important routes in November:

  1. Bogota-Medellin
  2. Cali-Bogota
  3. Cartagena-Bogota
  4. Barranquilla-Bogota
  5. Pereira-Bogota
  6. Bogota Bucaramanga
  7. Santa Marta-Bogota
  8. Cucuta-Bogota
  9. Quito-Guayaquil, in Ecuador. The airline is offering 152 flights on this route, only 5.6% under its pre-pandemic numbers.
  10. Monteria-Bogota.

Moreover, in terms of its Chapter 11 reorganization, Avianca recently announced it will continue to serve its long-haul markets only with the Boeing 787 Dreamliner fleet. That means it will retire (or refocus to the cargo segment) its Airbus A330 fleet.

Finally, Avianca has recently shown the new seats and three classes for its Airbus A320 fleet. We talked about the subject in Simple Flying en Español.

What do you think about Avianca’s plan to change its address to the UK? Let us know in the comments below.

Source : Simple Flying More   

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Qantas Plans Pop-Up Darwin Lounge Ahead Of International Restart

Qantas is making its Darwin stopover as comfortable as possible for premium passengers after opening a lounge in…

Qantas Plans Pop-Up Darwin Lounge Ahead Of International Restart

Qantas is making its Darwin stopover as comfortable as possible for premium passengers after opening a lounge in the airport’s international zone. The airline is temporarily taking over the now-shuttered Catalina lounge to cater for passengers flying to and from London on QF1/2.

Qantas is opening a “pop-up” lounge in Darwin to cater for its passengers traveling on QF1 and QF2. Photo: Qantas

A comfortable Darwin rest area for a 90-minute pitstop

After 19 months off the route, Qantas is resuming their London flights in early November. Fully loaded jets don’t have the capacity to safely make it to London from cities like Sydney and Melbourne without a stopover.

Before COVID-19 curtailed flights, Qantas London-bound flights out of Sydney flew via Singapore, and flights out of Melbourne operated via Perth. As Qantas reboots its international network, both cities are dropped as stopover ports in favor of Darwin.

It is 23 and a half hours flying time between Sydney and London on QF1. No matter where you are seated on the plane, that’s a long-haul. The stopover in Darwin might be brief – a 90-minute refueling pitstop, but Qantas knows its passengers will want to get off the plane and stretch their legs.

Qantas-pop-up-darwin-lounge
Qantas’ new Darwin lounge in Catalina Lounge mode. Photo: Lucid Consulting

Minimal changes to the lounge space serving as a short term fix

Qantas also knows its well looked after pointy end and other high-status frequent flyer passengers wouldn’t be impressed with the less than luxe surrounds of Darwin Airport’s international transit zone. Taking over the Catalina Lounge and restyling it as a pop-up lounge is an obvious short-term fix.

“We know that spending time in our lounges is one of the most enjoyable parts of the travel experience. We are excited to work with our friends at Darwin Airport to have our lounge facility ready next week in time to welcome our first international customers in 20 months,” says Qantas Group Chief Customer Officer Stephanie Tully.

“Given the relatively brief transit time of 90 minutes, our focus will be on offering a comfortable space for customers to stretch their legs, enjoy a brunch or light supper, and to refresh before their onward journey.”

The Catalina Lounge is a perfectly pleasant space. However, it isn’t a patch on the Qantas First lounge in Sydney or even the Qantas lounge at Heathrow with its marble cocktail bar. It’s also unlikely Neil Perry will fly in to dole out serves of his fairy floss pav.

However, the 100 seat lounge will have an open bar, lounge and dining areas with a serviced buffet, menus suited to the time of day, and well-maintained bathrooms (we assume that includes shower facilities as the Catalina lounge offered those).

The lounge will be open to business class passengers, oneworld emerald and sapphire members, platinum one, platinum, gold Qantas frequent flyers, and Qantas Club members.

Qantas-pop-up-darwin-lounge
Qantas is promising to offer some signature cocktails and drinks at its new Darwin lounge. Photo: Qantas

Other airlines’ passengers out in the cold?

Alas, neither QF1 nor QF2 land in Darwin close to the time Jetstar’s soon to commence flights between Darwin and Singapore will depart. Consequently, there will be no access for Qantas frequent flyers who find themselves on that Jetstar flight.

As other international airlines return to Darwin, a question also arises where they will park their premium passengers before departure. The Catalina Lounge was Darwin Airport’s only lounge in the international departures zone and served as a multi-user airline lounge.

Qantas has only scheduled flights to London via Darwin until April, at which point it is eyeing returning to flying via Perth and Singapore. But Darwin is currently finding favor with Qantas, and the airline may stick with the new route in the longer term.

That means the Darwin pop-up lounge may settle into something more permanent. It also raises the question of what other non-Qantas affiliated airlines will do for lounge facilities in Darwin.

Source : Simple Flying More   

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