Avianca will phase out its entire Embraer 190 fleet this year, as it targets a fleet simplification amid an overall company plan to improve profitability. The airline will remove 10 E190 aircraft, 8 of which it currently operates. Two other E190s are currently leased to Aeromexico Connect. As a result of the E190 removals, Avianca has incurred a US$38.9m one-time non-cash impairment charge in its Q4 2018 financial results, representing the residual value of the aircraft. The 10 E190s range from 7 to 10 years old. Avianca says the E190 phase-out will result in cost savings on the maintenance and inventory front, as the airline undergoes an internal plan to boost profitability after focusing on growth in recent years. The airline operated a fleet of 190 aircraft as of the end of 2018, including the 8 E190s. <br/>
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Avianca says it has suspended plans to merge with sister carrier Avianca Brazil, 2 months after the Sao Paulo-based carrier filed for bankruptcy protection. Avianca says the due diligence process to study a merger of the two airlines has been "suspended for a substantial amount of time and will remain postponed indefinitely". Avianca's majority shareholder Synergy Aerospace is the owner of Avianca Brazil, but the two airlines are managed separately. The similar names have often resulted in confusion and in recent months, a negative impact on Avianca's stock price after its privately-owned Brazilian namesake filed for bankruptcy protection in Dec 2018 as it was faced with aircraft repossession threats from lessors. <br/>