Court suspends Avianca Brasil bankruptcy auction of airport slots

A Brazilian appeals court Monday suspended a bankruptcy auction set for Tuesday, in which struggling carrier Avianca Brasil hoped to raise at least $140m by selling some of its coveted airport takeoff and landing rights, known as slots. The suspension could put further stress on Avianca Brasil, the country’s No. 4 airline, which has been operating with very little cash since filing for bankruptcy protection in December. The airline said in a statement that it was still analyzing what it would do in response and that it had not filed an appeal as of Tuesday afternoon. It was unclear when a new auction would be scheduled. The auction would have capped an arduous process in which Avianca Brasil fought aircraft lessors for months to try to keep operating its fleet despite missed payments. The airline’s operations have shrunk dramatically since April, when lessors won definitive rulings allowing them to repossess planes. Its fleet is down to six aircraft, from as many as 60 Airbus planes late last year. Suspension of Tuesday’s auction was requested by airport operator Swissport AG, which runs several Brazilian airports and is owed some 17m reais ($4.3m).<br/>