In an effort to improve its profitability, achieve a more efficient capital structure and reducing the current levels of indebtedness, Avianca Holdings reached an agreement with Airbus to reduce the number of aircraft deliveries scheduled for 2016, 2017, 2018 and 2019.
The agreement with the European aircraft manufacturer represents a CapEx reduction of approximately USD1.4 billion for the next 30 months. During this same period, Avianca Holdings will continue to pursue its cost reduction initiatives, seeking to strengthen its balance sheet and generate greater cash flow.
Avianca Holdings reaffirmed its leverage goal, measured as the net adjusted debt over EBITDAR, of no more than 5 times for 2019.