United Continental, Delta among possible bidders circling Avianca

United Continental and Delta are among suitors considering bids for Avianca Holdings, according to people familiar with the matter, as airlines around the world seek combinations to help them withstand fierce competition and bulk up internationally. Advisers to Avianca have distributed a document to potential bidders seeking a $500m capital injection, one of the people said, adding that could develop into a full sale. The process is in early stages, the people said, and there may be no deal at all. Avianca, one of the largest airline companies in Latin America, is based in Panama and owns carriers including its Colombian namesake and Tampa Cargo in that country, and AeroGal in Ecuador. Avianca went public in 2011 and has a market value equal to roughly $600m. Should there be a deal for Avianca, it would be the latest in a recent string of airline tie-ups. The pace of consolidation in the industry has quickened in recent years, particularly in Europe, the US and Latin America, as carriers seek to bulk up and broaden their scope amid stiff competition. In the US alone, eight airlines have merged into four since 2008 and those four control more than 80% of domestic capacity. In Latin America, there also have been some big mergers, including the 2012 joining of Chile’s Lan and Brazil’s Tam—in addition to the marriage of Avianca and Taca.<br/>