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 went public in 2011 and has a market value equal to roughly $600m. Avianca had revenue of $4.7b in 2014. Profit, excluding foreign exchange and fuel-hedging charges, was $120m. As of September 2015, the company had debt of $3.3b. It serves more than 100 destinations in 26 countries, with 176 airplanes operating 5,400 weekly departures, according to a December 2015 corporate presentation. Avianca has hubs in Bogotá, Colombia; San Salvador, El Salvador; and Lima, Peru. The group also runs a loyalty program, a logistics business, airport and maintenance services and runs tours. It sold a 30% stake in the loyalty business to a private-equity investor last year. Both United Continental and Delta could have reasons to want to explore a deal with Avianca. United Continental lost its largest Star Alliance member in the region when Tam merged into Latam, leaving a hole in its network. Last year, United invested $100 million for a 5% stake in Brazil’s No. 3 carrier, Azul Linhas Aereas Brasileiras SA. In 2012, the Taca brand went away and Avianca became the single brand for all the airlines in the group. The companies joined the Star Alliance in 2012.<br/>