Brazil Court Allows Carrier Avianca Brasil to Hold Bankruptcy Auction

A Brazilian appeals court ruled on Monday that airline Avianca Brasil should be allowed to hold a bankruptcy auction in which it is expected to sell its most coveted airport landing and departure rights, Reuters reported. The bankruptcy auction had been originally scheduled for early May, but was suspended at the last minute after an injunction was issued. Avianca Brasil filed for bankruptcy protection in December after falling behind on lease payments for its fleet and fell victim to high oil prices and a weak local currency. A spokesman for the airline had no immediate comment and it was not immediately known when a new auction would be scheduled. Avianca Brasil has been reducing its operations and lost nearly all of its Airbus planes by April. Brazil’s civil aviation regulator ANAC suspended all remaining activity in late May. The airline has not flown since. Read more