Frederico Pedreira (right) during the Routes Americas 2024 conference in Bogotá.
BOGOTA—Firsthand experience is giving Avianca’s CEO confidence in GOL’s ability to successfully navigate the Chapter 11 process.
“I know the team that is leading it because it was the same one in Avianca … so I’m 100% sure that they will take it to a successful exit, I have no doubts about it,” Frederico Pedreira said during the Routes Americas 2024 conference in Bogotá.
At the same time, knowing the work that goes into the process, “probably there are initiatives that were originally planned for this year … that will take a little bit more time,” he acknowledged.
GOL is the last of the three largest Brazilian airlines to go through the Chapter 11 process since the onset of COVID-19. Colombia-based Avianca exited its own Chapter 11 process in December 2021. Few Latin American carriers received government aid during the pandemic.
In May 2022 the Abra Group was formed by Avianca and GOL and, when the latter filed for bankruptcy protection in the U.S., its bondholders pledged $950 million in debtor-in-possession financing.
Pedreira stressed, “The vision of having a strong Abra [Group] across Latin America is something that we truly believe and that will continue to work.”
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Looking inward, the Colombian flag-carrier—in possession of eight operational certificates spread out across six countries—is working through a simplification of its fleet, seeing itself as competitive both with the LCCs in the region, while also investing in business-class travel to Europe in response to strong demand.
Currently the carrier operates Airbus A320neo- and ceo-family aircraft and Boeing 787s, a simplification from when it also operated ATRs and A330s. Most of its next fleet focus going forward, Pedreira said, is continuing to move its fleet from the ceos to the neos, while not entirely removing the older engine version in markets where it makes sense.
“In the next couple of years, what you'll see is not a lot of year-on-year growth, but a process of reflecting that will start in 2025 with an order that we have from Airbus,” Pedreira added.
Its order book currently consists of 98 A320neos, Aviation Week Network’s Fleet Discovery database shows, plus options for 50 more.
The airline is also focused on further improvements to its on-time performance (OTP), with Pedreira describing a 10-point improvement in the stat from 2019-23. In 2019 its OTP was 75, the CEO said.
“That is the base of the transformation we want for Avianca,” he said of OTP improvements. Resulting efficiencies, he said, will translate into a more competitive cost structure and cheaper fares.
Noting the 32.4 million passengers the airline welcomed in 2023, Pedreira announced the airline is “going for 40 [million] this year.”
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