Avianca suspends merger plans with Avianca Brazil

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/>