Avianca details aircraft delivery renegotiation: 'We found improvements in our productivity'

Avianca Holdings CEO Hernan Rincon, speaking on Avianca Holdings' 1Q2018 financial results call, clarified (10-May-2018) the rationale behind Avianca's renegotiation of aircraft deliveries for 2020 to 2022, stating: "[We] have multiple orders for aircraft which we need to review in light to current conditions". He added Avianca improved load factors and increased larger aircraft in a "dramatic way", leading to gaining of pilot and ground efficiencies. In addition, the 4Q2017 pilots' strike forced the carrier "to be creative" on managing the aircraft, "and we found improvements in our productivity". Mr Rincon also clarified that the carrier planned previous years "to retire a number of aircraft in the past years, but demand was so strong that we decided to bring in aircraft as we did last year, but we kept the old aircraft flying because of demand". He added Avianca has "very good capacity today to continue to grow, yet we don't have the need in 2020-2022 for that many aircraft".