Tag: holdings (Page 7 of 9)

BRX Holdings to buy Pioneer Railcorp for $18.81 Per Share

May 17, 2019 / WIL BALDWIN

PEORIA, Ill., May 17, 2019 /PRNewswire/ — Pioneer Railcorp (OTC: PRRR, “Pioneer”), a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company, and BRX Transportation Holdings, LLC (“BRX”), an entity formed by Brookhaven Rail Partners (“Brookhaven”) and Related Infrastructure (“Related”), announced entry into a definitive merger agreement under which BRX will acquire Pioneer for $18.81 per share in cash. The agreement, which has been unanimously approved by Pioneer’s independent directors, represents a premium of approximately 100.7% over Pioneer’s closing stock price on May 16, 2019, the last trading day prior to the announcement of the transaction.

“We look forward to this next chapter in Pioneer’s journey and anticipate it will have a bright future under new ownership,” said Mike Carr, President and Chief Executive Officer of Pioneer.

“We are excited to partner with Related Infrastructure and to have worked with Pioneer’s management and board on a transaction that brings great value to its shareholders, its customers, and the communities it serves. Pioneer fits perfectly with Brookhaven’s philosophy of identifying opportunities where our hands-on management expertise, proprietary value creation strategies, and deep industry relationships provide us with a competitive advantage and the ability to create value,” said Alex Yeros, Principal of Brookhaven.

Related Infrastructure, a subsidiary of Related Fund Management which has raised over $5 billion of capital across a variety of different investment vehicles and strategies, invests in companies that develop, operate and service transportation infrastructure throughout the United States. Andrew Right, Managing Partner of Related Infrastructure said, “We are pleased to partner with Brookhaven to build a rail-based infrastructure platform. We appreciate the work Mike Carr and his team have done to create the Pioneer portfolio of rail businesses. We look forward to working with Alex and the entire team at Brookhaven, an industry leading team with over 25 years of experience building businesses in the short-line rail industry to further drive expansion of the platform.”

Under the terms of the merger agreement, BRX will acquire through merger all of the outstanding shares of Pioneer’s Class A common stock. Shareholders other than Pioneer’s subsidiary, Heartland Rail Investments LLC, will receive $18.81 per share in cash and the Heartland shares will be canceled without consideration.

In connection with the execution of the merger agreement, certain stockholders of Pioneer, together holding a significant portion of the outstanding shares of common stock of Pioneer, have agreed to vote their shares in favor of the transaction under a voting and support agreement.

The consummation of the merger is subject to various closing conditions, including approval by Pioneer’s shareholders, Surface Transportation Board approval, and operating performance by Pioneer within a specified working capital floor and debt ceiling. The merger is not subject to a financing condition. Subject to satisfaction of the closing conditions, the transaction is expected to close in the third quarter of 2019.

Arnold & Porter is acting as legal advisor to BRX in this transaction. BMO Capital Markets is serving as exclusive financial advisor to Pioneer in connection with this transaction and Briggs and Morgan, P.A. is acting as Pioneer’s legal advisor.

About Pioneer
Pioneer Railcorp is the parent company of 17 short-line common carrier railroad operations, an equipment leasing company, two service companies and a contract services switching company. Pioneer and its subsidiaries operate in the following states: Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Ohio, Pennsylvania and Tennessee. For more information on Pioneer, please visit: http://www.Pioneer-Railcorp.com

About Brookhaven
Brookhaven Rail Partners is an affiliate of Denver-based Brookhaven Capital Partners, a privately held, real estate and infrastructure investment and management firm. Brookhaven and its principals have a 25-year track record of investing in, operating and developing critical transportation assets that support industry, and promote new economic development, community investment, and job creation. For more information on Brookhaven, please visit: http://www.BrookhavenPartners.com

Ryanair Co-Founder Plans Third Latin Airline

May 10, 2019 / WIL BALDWIN

Low-cost Viva Air plans NYSE listing within two years
Budget carriers are disrupting transport across Latin America

Rendering of an Airbus A320neo Viva Air aircraft Source: Airbus SE

Viva Air, the Latin American group of carriers owned by a founder of Ireland’s Ryanair Holdings Plc, has plans for a third airline in the region plus an initial public offering, to cash in on strong demand for discount air travel.

The company aims to sell shares in New York within two years, Viva’s biggest shareholder, Declan Ryan, said in an interview in Lima. The shares could also be listed on another exchange, such as Colombia’s, he said.

Click the link for the full story from Bloomberg!

https://www.bloomberg.com/news/articles/2019-05-10/ryanair-co-founder-plans-third-latin-airline-followed-by-an-ipo

Avianca Brazil Gives Up 18 Planes, Cancels 1,045 Flights

April 22, 2019 / WIL BALDWIN

RIO DE JANEIRO (AP) — Avianca Brasil canceled more than 1,045 domestic flights this week because it has to return 18 aircraft to leasing agencies.

Brazil’s National Aviation Agency said the planes needed to be returned Monday to avoid affecting Holy Week holiday passengers. Customers can either get refunds for canceled flights or rebook through partner airlines.

Avianca Brasil declined to say how many planes it has left. But the G1 news portal reports that the airline has just seven planes still in its fleet.

On April 1, the airline canceled several international routes from Sao Paulo to New York, Miami and Santiago, Chile.

Avianca Brasil filed for bankruptcy in December after failing to pay leases on its aircraft. The airline, formerly known as Ocean Air, has licensed the name Avianca since 2010 from Colombian carrier Avianca Holdings SA. They are separate companies with the same owners: brothers German and Jose Efromovich. The latter is being investigated for allegedly failing to pay airport fees in Salvador airport in northeastern Brazil.

A company representative from Avianca’s headquarters in Colombia stressed that the Brazilian company is independent from Avianca Holdings group, both operationally and financially. The company said in a statement that flights operated by Avianca Holdings SA from hubs in Bogota and Lima, Peru, to destinations in Brazil will not be affected by the Avianca Brasil cancellations.

Airbus A320 Neo of Avianca at GRU Airport – Guarulhos International Airport, Sao Paulo, Brazil – 2017

United Airlines First-Quarter Profit Rises

April 17, 2019 / WIL BALDWIN

FILE PHOTO: A United Express Embraer ERJ-175LR airplane is pictured at Vancouver’s international airport in Richmond, British Columbia, Canada, February 5, 2019. REUTERS/Ben Nelms

(Reuters) – United Airlines on Tuesday reported a better-than-expected jump in first-quarter profit as it sold more tickets and cut costs, standing by its 2019 profit target even as its Boeing Co 737 MAX jets remain grounded.

Chicago-based United has removed its 14 MAX aircraft, which were suspended worldwide in March following two fatal crashes, from its flying schedule through early July, eating into U.S. airlines’ peak summer travel season.

Still, the airline’s parent United Continental Holdings Inc reiterated its estimate for adjusted earnings of $10 to $12 per share in 2019, and said its strategy for scheduling more flights out of its hubs was continuing to win customers.

Adjusted earnings per share rose to $1.15 in the first quarter, ending March 31, from 49 cents a year earlier, overcoming a U.S. government shutdown and severe winter weather earlier this year that curtailed flights.

Wall Street analysts on average had forecast 95 cents per share, according to IBES data from Refinitiv.

Its shares rose 2.8 percent in after-hours trading.

United has largely avoided cancelling MAX flights by servicing those routes with larger aircraft, but President Scott Kirby warned last week that the strategy could not last indefinitely.

The airline, which has been adding seats at a faster pace than rivals, trimmed its 2019 capacity growth target to between 4 percent and 5 percent from 4 percent to 6 percent previously, but did not say whether the decision reflected the effect of the grounded MAX.

Total operating revenue rose 7.1 percent to $8.73 billion in the quarter, while closely watched revenue per available seat mile rose 1.1 percent.

In the second quarter, United said it expects unit revenue to rise between 0.5 percent and 2.5 percent while unit costs, which fell 1.8 percent in the first quarter, were expected to be flat to 1 percent higher.

The No. 3 U.S. carrier is the first of three U.S. 737 MAX operators to report first-quarter results. Southwest Airlines Co and American Airlines Group Inc, which have removed their MAX jets from schedules into August, report on April 25 and April 26 respectively.

A Federal Aviation Administration review board said on Tuesday that it found a Boeing software update for the MAX to be “operationally suitable,” suggesting the lengthy regulatory process to get the planes back in the air was underway.

Rival Delta Air Lines Inc, which does not operate the 737 MAX, lifted its 2019 revenue forecast last week after reporting better-than-expected quarterly profit.

(Reporting by Tracy Rucinski in Chicago; Additional reporting by Sanjana Shivdas in Bengaluru; Editing by Bill Rigby)

Jet Airways Planes To Be Redeployed If Restructuring Fails

March 8, 2019 / WIL BALDWIN

* FLY Leasing has grounded 3 Boeing 737s

* Jet Airways says 28 planes grounded for non-payment of dues

* Lenders, Etihad yet to approve restructure (Adds graphic)

SINGAPORE, March 8 (Reuters) – FLY Leasing Ltd has grounded three planes on lease to India’s Jet Airways Ltd and will take them back and redeploy them elsewhere if the airline cannot gain approvals for a restructuring plan this month, the lessor’s CEO said.

Jet Airways on Thursday said another three aircraft had been grounded due to its failure to make payments, taking the total number to 28, but it has not specified the lessors involved.

The grounding of nearly one-quarter of the airline’s fleet has led to the cancellation of hundreds of flights and complaints from customers on social media.

Several major global aircraft leasing companies, including AerCap Holdings NV and BOC Aviation have exposure to the financially troubled airline, which has defaulted on loans and has not paid pilots, leasing firms and suppliers for months.

“We have grounded our aircraft, we have control over our aircraft, but we have not terminated the leases and we are waiting for the airline to approve all its restructuring with the State Bank of India,” FLY Leasing CEO Colm Barrington told analysts on a results call on Thursday.

“If that goes through at the end of the month, obviously, we will stay with Jet. If they can’t get that done, then we’ll take our aircraft back and redeploy.”

The airline had three relatively young Boeing Co 737-800s on lease to Jet Airways, which accounted for around 3 percent of FLY Leasing’s revenue, he said.

Jet Airways has outlined a draft to sell a majority stake to a consortium led by the State Bank of India at 1 rupee, under regulations that permit banks to convert debt to equity in a defaulting firm.

The stake sale will be followed by an equity raising, debt restructuring and the sale and leaseback of jets to help plug a $1.2 billion funding gap, but the plan needs approvals from several stakeholders, including major shareholder Etihad Airways.

(Reporting by Jamie Freed in Singapore; Additional reporting by Chandini Monnappa in Bengaluru; Editing by Stephen Coates)

United Bids for 6 New Slots at Tokyo’s Haneda Airport

February 21, 2019 / WIL BALDWIN

CHICAGO (Reuters) – United Continental Holdings is applying for six of 12 new slots open to U.S. carriers at Tokyo’s Haneda International Airport in a push to increase daily nonstop flights to the Japanese capital ahead of the 2020 Olympic Games and beyond.

Haneda is located closer to downtown Tokyo than the capital’s other international airport Narita, and flies to more destinations throughout Japan, making it attractive for both business travelers and tourists.

Thursday is the deadline for applications to the U.S. Department of Transportation for the 12 extra Haneda slots that Japan has agreed to allot to U.S. airlines.

The extra slots for U.S. airlines were unlocked after Japan reached an agreement with the U.S. Air Force to open up new flight paths around a nearby U.S. air base, a move needed to boost Haneda movements in the run-up to the 2020 Olympics in Tokyo.

Completion of an aviation agreement between the U.S. and Japanese governments is expected later this year, United said. Flights are expected to begin service by the summer of 2020, once the U.S. Department of Transportation awards the slots.

U.S. carriers American Airlines Group, Delta Air Lines and Hawaiian Airlines are also expected to bid.

United wants to fly to Haneda from its hubs at Newark Liberty, Chicago O’Hare, Washington Dulles, Los Angeles International, Houston George Bush and Guam. The flights from Newark, Los Angeles and Guam would be new routes operated by Boeing 777 and 787 aircraft, while the flights from the other three hubs would be shifted from Narita.

Under the proposal, United said it would connect to 37 destinations in Japan from Haneda with its joint venture partner All Nippon Airways (ANA).

Industry analysts say a recent sale of Boeing 737 MAX aircraft to ANA may have weighed in the decision to grant more flying rights for U.S. airlines into Haneda, which airlines compete for aggressively due to the airport’s proximity to the Japanese capital, a major center for global commerce.

(Reporting by Tracy Rucinski; Editing by Chizu Nomiyama)

A United Airlines plane with the Continental Airlines logo on its tail, sits at a gate at O’Hare International airport in Chicago October 1, 2010. REUTERS/Frank Polich/File Photo

Boeing Reportedly Near $3.5 Billion 737 MAX Deal with ANA

January 28, 2019 / WIL BALDWIN

SEATTLE (Reuters) – Boeing Co is close to a deal worth $3.5 billion (2.66 billion pounds) at list prices to sell 30 Boeing 737 MAX jetliners to ANA Holdings, two people familiar with the matter said.

The deal is the first sale in Japan for the newest version of Boeing’s best-selling 737 family and marks a reversal for Europe’s Airbus, five years after the same airline became the first Japanese carrier to pick the competing A320neo.

It also coincides with negotiations between Washington and Tokyo over a potential trade pact, with Japan facing pressure from U.S. President Donald Trump’s administration to cut its trade surplus with the United States.

Boeing declined to comment. ANA could not immediately be reached for comment. A deal announcement could come as early as Tuesday, subject to the airline’s final approval, the sources said, speaking on condition of anonymity.

The Boeing 737 MAX and Airbus A320neo have amassed thousands of orders due to significant fuel savings offered by a new generation of engines.

But the world’s largest plane makers continue to wage fierce market battles, while Boeing has been chipping away at Airbus’s recent lead in the market for such medium-haul airplanes.

Trump and other top U.S. administration officials have criticized Japan over trade, asserting that Tokyo treats the United States unfairly by shipping millions of cars to North America while blocking imports of U.S. autos and farm products.

Japan says its markets for manufactured goods are open, although it does protect politically sensitive farm products.

In September, Trump and Japanese Prime Minister Shinzo Abe agreed to start trade talks in an arrangement that appeared, temporarily at least, to protect Japanese automakers from further tariffs on their exports, which make up about two-thirds of Japan’s $69 billion trade surplus with the United States.

Japan has insisted the new Trade Agreement on Goods would not be a wide-ranging free trade agreement, but U.S. Trade Representative Robert Lighthizer said last year he was aiming for a full free-trade deal requiring approval by Congress.

(Reporting by Eric M. Johnson in Seattle and by Reuters bureaus; Editing by GV De Clercq and David Evans)

United Airlines Announce Repeat Orders for 737 MAX and 777

January 16, 2019 / WIL BALDWIN

SEATTLE, WA Jan 16, 2019 – Boeing [NYSE:BA] and United Airlines [NASDAQ:UAL] announced the carrier ordered 24 additional 737 MAX jets and four more 777-300ER (Extended Range) airplanes last year. The $4.5 billion order, according to list prices, was booked as unidentified on Boeing’s Orders & Deliveries website.

The Chicago-based airline has steadily placed new orders for the two Boeing jets to serve its large domestic and international network. United Airlines is among the more than 100 customers who have made the 737 MAX the fastest-selling airplane in Boeing history, receiving more than 5,000 orders since the program’s launch.

“United Airlines has been instrumental to the phenomenal success of the Boeing 737 and 777 programs over the years. We are honored by United’s continued confidence in our people and our airplanes and services,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company. “We are proud to again extend our long-standing partnership with United Airlines with these latest orders.”

The MAX builds on the 737’s industry-leading performance and reliability by offering operators more range and 14-percent better fuel efficiency compared to today’s airplanes and 20 percent more than the airplanes it replaces. The MAX achieves the improved performance thanks to the CFM International LEAP-1B engines, Advanced Technology winglets, and other airframe enhancements.

The 777 has become the best-selling twin-aisle jet family in history, earning more than 2,000 orders. In fact, United’s order pushed the program over the 2,000 threshold in December. It is also the most reliable twin-aisle jet flying today with the highest schedule reliability in the industry at 99.5 percent. The 777-300ER can seat up to 386 passengers in a three-class configuration and has a maximum range of 7,930 nautical miles (14,685 km).

United also utilizes Boeing Global Services to enhance its operations of their large fleet of Boeing aircraft. Multiple digital Boeing solutions, including those powered by Boeing AnalytX, optimize its operations. Recently, United signed for crew management and electronic flight bag (EFB) tools to enhance operational efficiency across all phases of flight.

Story and image from http://www.boeing.com

United Airlines Reports Full-Year and Fourth-Quarter 2018 Performance

January 15, 2019 / WIL BALDWIN

PR Newswire – January 15, 2019

Q4 unit revenue up 5.0% year-over-year; full-year diluted 2018 EPS of $7.70; adjusted diluted EPS of $9.13

CHICAGO, Jan. 15, 2019 /PRNewswire/ — In a departure from industry trends, United (UAL) announced today that its fourth-quarter unit revenue came in at the high end of its guidance range and also exceeded its full-year adjusted diluted earnings per share target laid out last January. UAL reported full-year net income of $2.1 billion, diluted earnings per share of $7.70 (a 9.1 percent increase year-over-year), pre-tax earnings of $2.7 billion and pre-tax margin of 6.4 percent. UAL reported adjusted full-year net income of $2.5 billion, adjusted pre-tax earnings of $3.2 billion and adjusted pre-tax margin of 7.7 percent.¹UAL increased its full-year 2018 adjusted diluted earnings per share outlook three times during the year despite a $2.4 billion year-over-year headwind from fuel. Full-year adjusted diluted earnings per share increased 33.5 percent year-over-year to $9.13, above the high end of the company’s most recent guidance range.

“United’s financial performance is a testament to the successful implementation of the first year of our strategic plan and to the record-setting operational performance powered by the more than 90,000 airline professionals who work at United,” said Oscar Munoz, chief executive officer of United Airlines. “United delivered proof, not just promises in 2018 – even in the face of significant headwinds from higher than expected fuel costs. It’s why I couldn’t be more proud of our winning culture and customer-focused team and continue to be enthusiastic about United’s bright future.”

For 2019, UAL expects adjusted diluted earnings per share to again grow year-over-year to between $10.00 to $12.00.²

UAL reported fourth-quarter net income of $462 million, diluted earnings per share of $1.70, pre-tax earnings of $556 million and pre-tax margin of 5.3 percent.
UAL reported fourth-quarter adjusted net income of $657 million, adjusted diluted earnings per share of $2.41 and adjusted pre-tax earnings of $814 million.
UAL reported fourth-quarter adjusted pre-tax margin of 7.8 percent,¹ expanding margin on an adjusted basis of 0.9 points versus the fourth-quarter of 2017.
UAL recovered 98% percent of the year-over-year increase in fuel prices in 2018.
Consolidated fourth-quarter passenger revenue per available seat mile (PRASM) increased 5 percent year-over-year, at the high end of the company’s fourth-quarter 2018 guidance range.
Consolidated fourth-quarter unit cost per available seat mile (CASM) increased 7.0 percent year-over-year.
Consolidated fourth-quarter CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.7 percent year-over-year.
Employees earned $334 million in profit sharing for 2018.

For more information on UAL’s first-quarter and full-year 2019 guidance, please visit ir.united.com for the company’s investor update.

2018 Highlights

Record-Setting Operational Performance³

Set new UAL records by flying the most revenue passengers ever, operating the most mainline departures and achieving the fewest cancellations ever in a year, resulting in more UAL customers departing on-time in 2018 than ever before.
For the year, achieved the best completion rate in company history with more than 1.7 million flights.
In 2018, achieved the best ever company STAR performance (first departures of the day), with nearly 250,000 flights leaving on time.
In the fourth quarter, the company achieved top-tier performance in on-time departures among its largest competitors. For the December holiday season, UAL had its best-ever on-time departure performance while flying the most revenue customers it had ever flown during the holiday period.

Customer Experience

Opened three new United Polaris lounges located in San Francisco International Airport, Newark Liberty International Airport and Houston’s George Bush Intercontinental Airport.
Announced UAL’s newest premium seating, United® Premium Plus, which will provide more space, comfort and amenities on select international flights starting later this year.
Introduced a new boarding process designed to reduce customers’ stress by reducing time spent waiting in line and providing them with improved boarding information.
Expanded personal device entertainment option to all aircraft, providing at least one free entertainment option on all Wi-Fi equipped aircraft.
MileagePlus loyalty program voted Best Overall Frequent-Flyer Program in the world for the 15th consecutive year by readers of Global Traveler, and voted Favorite Frequent-Flyer Program in the Trazee Awards.

Employees

Employees earned incentive payments totaling approximately $14 million for achieving operational performance goals in the quarter, marking a full year of earned incentive payments totaling $55 million.
Introduced and trained over 90,000 team members on UAL’s new customer service decision framework, the core4, which focuses on the principles of safe, caring, dependable and efficient.
Deployed 6,000 iPads to maintenance employees, improving reliability and efficiency.
Unveiled a state-of-the-art flight training center in Denver, Colorado – the largest in the world and home to the company’s more than 30 full flight simulators representing all of UAL’s fleet types.
Successfully completed the full implementation of the flight attendant joint collective bargaining agreement, allowing the company to operate more efficiently and reliably.
Achieved the top score of 100 percent on the 2018 Disability Equality Index (DEI), a prominent benchmarking metric that rates U.S. companies on their disability inclusion policies and practices, also earning UAL a place on DEI’s 2018 “Best Places to Work” list.
Received “Best-of-the-Best” Award from the National LGBT Chamber of Commerce and National Business Inclusion Consortium for commitment to diversity and inclusion across all communities.

Network

Introduced 93 new routes, adding more flights in 2018 than any other U.S. airline.
Announced new international service including Washington-Dulles to Tel Aviv, Israel; San Francisco to Amsterdam, Netherlands; Newark/New York to Naples, Italy; as well as Newark/New York to Prague, Czech Republic and Denver to Frankfurt, Germany, all subject to government approval.
Launched several exciting new international routes including Houston to Sydney, San Francisco to Tahiti and Denver to London.
Announced schedule expansion at East Coast hubs in Newark/New York and Washington-Dulles to offer more nonstop flights to destinations popular with New York-area customers while reallocating largely connecting passenger flights to Washington-Dulles.
Announced a joint business agreement with Compañía Panameña de Aviación S.A. (Copa), Aerovías del Continente Americano S.A. (Avianca) and many of Avianca’s affiliates, pending government approval.

Fleet

Took delivery of 21 new Boeing aircraft, including four 777-300ER, four 787-9, three 787-10 and ten 737 MAX 9 aircraft.
In December 2018, ordered an additional four Boeing 777-300ER aircraft and 24 737 MAX aircraft.

Community and Environment

Pledged to reduce the company’s greenhouse gas emissions by 50 percent by 2050, the only U.S. airline to commit to emissions reductions, further strengthening UAL’s ambition to be the world’s most environmentally conscious airline.
Announced a total of $8 million in grants to benefit organizations in each of UAL’s domestic hub communities.
Announced new global partnership with the Special Olympics and flew hundreds of Team USA Olympic and Paralympic Winter Games 2018 athletes, coaches and family members to PyeongChang, South Korea, continuing the 38-year relationship between UAL and the United States Olympic Committee.
Ranked No. 1 among global carriers in Newsweek’s 2017 Global 500 Green Rankings, one of the most recognized environmental performance assessments of the world’s largest publicly traded companies.
Launched a Crowdrise fundraising campaign to support those affected by Hurricane Florence, Typhoon Mangkhut, flooding in Western Japan, wildfires in California and other disasters.

Earnings Call

UAL will hold a conference call to discuss its fourth-quarter and full-year 2018 financial results and its financial and operational outlook for the first quarter and full year of 2019 on Wednesday, January 16, at 9:30 a.m. Central time /10:30 a.m. Eastern time. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website for three months.

Avianca Brasil Lessor Set to Seize 20% of Airline’s Fleet

January 11, 2019 / WIL BALDWIN

SAO PAULO, Jan 11 (Reuters) – Lessor Aircastle is set to repossess 10 jets from Avianca Brasil, the country’s No. 4 airline, after a bankruptcy hearing on Monday, a source familiar with the matter said, potentially disrupting flights for thousands of passengers.

The 10 Airbus A320 planes represent more than 20 percent of Avianca Brasil’s current fleet, according to data provided by Brazil’s aviation regulator, raising doubts about the carrier’s ability to fly its full flight schedule if the aircraft are seized.

And it could lose more planes in the future. Lessor GE Capital Aviation Services and an affiliate are seeking to repossess 12 Airbus A320s from Avianca Brasil, according to James Luton, a GE spokesman.

When the airline filed for bankruptcy protections last month, the airline discussed the possible loss of 14 planes, which it said would affect 77,000 passengers over a three-week period.

A representative for Avianca Brasil declined to comment. The bankruptcy filing came after years of mounting losses and late aircraft payments.

Bankruptcy filings, while providing protection from creditors, do not cover leases, the source of the carrier’s entire 46-aircraft fleet.

Between the end of 2016 and September 2018, Avianca Brasil’s liabilities to aircraft lessors quintupled to 415 million reais ($112 million), according to the carrier’s financial statements.

Still, a Brazilian bankruptcy judge stayed a decision that would have allowed Aircastle to repossess the planes last month. That stay, however, expires on Monday.

Since the stay was issued, the source said, Avianca Brasil has not made any proposal to Aircastle that would have allowed the carrier to keep the planes. Avianca Brasil owes Aircastle more than $30 million, the source added.

The stakes are also high for Aircastle, as Avianca Brasil is its largest single customer, representing some 7 percent of its net book value, according to the lessor’s financial disclosures.

Avianca Brasil is separate from the better-known Avianca Holdings SA, which is based in Colombia. But they share the same owner, a family company owned in part by Bolivian-born airline entrepreneur German Efromovich.

United Continental Holdings gave the family company a $500 million loan last November.

Neither party has revealed why the loan was needed, but Efromovich has been sued for failure to repay his debts in the United States and Brazil in recent years.

($1 = 3.7138 reais)

(Reporting by Marcelo Rochabrun)

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