Avianca Holdings’ board of directors said it has authorized the airline to analyze a potential “strategic-commercial alliance” with United Continental Holding, which operates US carrier United Airlines.
The Colombian airline said the terms were still “pending negotiation,” but its controlling shareholder, Synergy Aerospace Corp., will inject up to $200m to help facilitate a transaction with United, a statement to the regulator showed.
Synergy will also aim to merge Avianca Holdings with its Brazilian arm Ocean Air Linhas Aereas SA, the statement added.
Avianca has been in talks with a number of airlines from US airlines United and Delta to Panamanian flag carrier Copa, two sources told LatinFinance last November.
The Colombian carrier is understood to have mandated Bank of America Merrill Lynch as financial advisors, in a cash and stock transaction worth some $500m.