Copa in the Battle for Avianca

The Panamanian airline has presented a financial offer in cash and stock to acquire the second largest airline in the region after Latam Airlines.

Monday, December 12, 2016

The New York Times reported that the offer made by Copa Airlines consists of "...  a merger that would value Avianca at more than $2 billion, or a 150 percent premium to its share price last week. [November 29]".

Two other airlines also presented their proposals. "...United offered a $500 million loan to Avianca and potentially one of its investors... Delta offered more than $1 billion in cash, a majority of which would go to buy out most of the Synergy Group, Mr. Efromovich’s investment arm, with the rest going to Avianca. The Delta bid implied a $1.9 billion valuation."

See full article As Avianca Weighs Bids, Hedge Fund Plays Unusual Role: Diplomat

More on this topic

Airlines: Strategic Alliance in the region

December 2018

Avianca, United Airlines and Copa Airlines, signed a trade agreement that will allow them to agree flight routes in the American continent.

To ensure the commercial agreement reached on November 30th becomes effective, the three airlines plan to apply for regulatory approval and a complementary antitrust immunity (ATI) subsidy in the coming weeks from the U.S.

Avianca to Partner with United Airlines

February 2017

Dismissing the proposals by the Panamanian company Copa and that of Delta, Avianca Holdings has announced it will start the process of finalizing a strategic and commercial alliance with United Airlines.

Nearly two months after it became known that three airlines were negotiating with Avianca over a potential acquisition processes , the airline announced that "... it has decided to advance the realization of a strategic-commercial long - term alliance with United Airlines, whose terms are still to be negotiated."

Partners Sought By Avianca

September 2016

Delta Airlines, United Continental and Copa Airlines may have submitted bids to acquire a minority stake in the company, which is said to be looking for an international partner to strengthen its growth. reports that "...Avianca Holdings S.A., based in Bogota, has been hunting for an international partner to help shore up its balance sheet and support growth...Some giants of the industry have been evaluating the idea."

More Competition in Regional Aviation Market

December 2014

With the entry of two competitors focusing on the business of low-cost fares, the airline market in Central America is preparing for a potential price war.

Panama has become the starting point for tourists looking to travel to the rest of Central America, where new airlines want to capitalize on a market which so far has been driven Copa Airlines and Avianca.

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