Judge blocks Avianca Brasil aircraft repossessions

Avianca Brasil will hold on to its leased aircraft for now as a Brazilian bankruptcy judge granted a request by airline to suspend lawsuits from multiple lessors looking to repossess at least 14 aircraft.

The judge citied the protection of passenger bookings as the main reason behind the ruling, given that leases are not protected by Brazil’s bankruptcy rules.

The carrier, which filed for bankruptcy protection on 10 December 2018, is US$120 million in debt, according to paperwork from the filing.

Creditors include Petrobras, which is owed $15 million for fuel, GE Celma and Pratt & Whitney.