Avianca Brasil Sued Over Missed Payments on Leased Jetliner

  • Airline behind on $4.64 million in payments on Airbus A330
  • Jetliner, which was delivered in 2014, now in storage

Oceanair Linhas Aereas SA, which operates as Brazilian airline Avianca Brasil, hasn’t paid more than $4 million in lease payments for one of its Airbus A330 airplanes, according to a lawsuit filed by Wells Fargo & Co.

The complaint, filed Oct. 14 in federal court in Manhattan, claims the airline is behind on $4.64 million in payments to Avolon Holdings Ltd. As lease trustee, Wells Fargo is seeking a past-due balance plus $300,000 in legal fees, according to the filing.

German and Jose Efromovich, the brothers who control Avianca Brasil and Colombia’s Avianca Holdings SA, have been looking for partners for both airlines with a long-term goal of merging the two. The brothers also control Synergy Aerospace Corp., which is named as a defendant in the suit.

Avianca Brasil officials said they weren’t aware of the lawsuit and declined to comment.

An Avolon spokesman said the aircraft, which was initially delivered in June 2014 for a 120-month lease, is currently in storage. He declined to provide additional details. Avolon was acquired by a unit of China’s HNA Group, which is controlled by billionaire Chen Feng, in a $7.6 billion deal that closed in January.

The case is Wells Fargo Bank Northwest NA v. Synergy Aerospace Corp., 16-cv-08065, U.S. District Court, Southern District of New York (Manhattan).

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