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Troubled Avensa signs a letter of intent to merge with Aserca Airlines.

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

Venezuela's Avensa Airlines has signed a letter of intent to merge with Aserca Airlines, which apparently requires major structural changes on the part of Avensa Airlines to prevent itself from bankruptcy.

Under the agreement Avensa Airlines will have to reduce its workforce by 40%, buy six modern jet aircraft and pay off its debts, all of which will cost some USD53m.

The airline will also have to increase its number of domestic flights and increase the frequency of other flights to increase its passenger numbers by six times.

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Publication:Airline Industry Information
Date:Apr 7, 2000
Words:108
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