Avianca Brasil's legal fight with plane leasing firms escalates

Avianca Brasil's battle with its aircraft leasing firms intensified Friday after Brazil's aviation regulator said it would no longer ground 10 of the struggling carrier's planes and another lessor renewed its effort to repossess 10 others. Aircastle and GECAS have been trying to repossess planes from the airline since it fell behind on lease payments, but their efforts were hampered when Avianca Brasil filed for bankruptcy protection in December. ANAC, the country's aviation regulator, announced Friday that it would not intervene in the dispute, a move that came a day after it had said it would ground 10 of Avianca Brasil's 46 planes at the request of GECAS. "Avianca will be able to operate its previously scheduled flights normally," ANAC said , citing what it described as an agreement between Avianca and its aircraft leasing firms. <br/>