Ocean Air owner acquires Avianca

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Brazilian firm Grupo Sinergy hopes the $64m deal will boost its regional carrier Ocean Air and the struggling Colombian airline

Brazilian investment firm Grupo Sinergy, owner of Brazilian regional carrier Ocean Air, has acquired Aerovias Nacionales de Colombia (Avianca) for $64m. The company bought 75% of the carrier's shares and aims to rescue the airline from bankruptcy and debts of $300m.

Sinergy executive German Efromovich said the deal would boost Ocean Air's network and allow Avianca, the oldest airline in Latin America, to reorganise its fleet and seek alliances with international airlines. ''With this deal Ocean Air can be a feeder for all Brazilian cities,'' he said. ''We are thinking of expanding Avianca's participation in the continent and will look into the possibility of expanding internationally.''

Ocean Air flies about 20,000 passengers a month on its 10 aircraft and has become the biggest regional airline in Brazil since beginning operations as a taxi carrier for oil companies more than two years ago. Avianca is expected to take $630m in ticket sales this year, and flies to 19 cities in Colombia and 15 countries in Latin America, North America and Europe.