Avianca and TACA Will Form the Leading Airline Network in Latin America to Strengthen Strategic Position and Capacity for Growth

Becoming the Airline Group with the Largest Coverage, Serving More Than 100
Destinations in America

A Unique Passenger and Cargo Network in Latin America Through the Strategic Hubs
in Bogotá, San Salvador, San José de Costa Rica and Lima

The Combined Strengths of Their Complementary Fleet, Aligned Service Strategies
Coupled with the Outstanding Talent of Their People Will Enable the Airline
Group to Build a More Competitive Business Model

Avianca and TACA Will Preserve Their Respective Brands and Continue to Operate
Separately under a Common Strategic Vision
BOGOTA, SAN SALVADOR, El Salvador, LIMA, Peru & SAN JOSE, Costa Rica--(Business
Wire)--
Synergy Group and Grupo Taca Holdings Ltd announced today that they have reached
an agreement leading to the creation of Latin America`s leading airline group.
As a result of this agreement, each shareholder will contribute its respective
controlling ownership participations in the operations of Aerovías Del
Continente Americano S.A., ("Avianca"), Colombia`s leading airline, and Grupo
TACA ("TACA"), Central America`s leading carrier, to a newly formed holding
company. The transaction is subject to regulatory and other antitrust approvals.

The new group will capitalize on two of the best known airline brands in Latin
America, two world-class product offerings, strong hubs and complementary
networks, as well as two uniquely entrepreneurial and service-oriented cultures
with highly motivated employees. By leveraging the new group`s four hubs - in
Bogota, Lima, San Salvador and San Jose, Costa Rica - Avianca and TACA will be
able to offer customers better service to more destinations than any other
carrier in the region. Employees will also benefit from the new group`s greater
geographical diversification and stronger combined platform for future growth
and career development in the face of a still challenging economic environment,
volatile fuel prices and intense competition.

Roberto Kriete, Chairman and CEO of TACA, who will serve as Chairman of the
future group, said, "Grupo TACA has long been a leading force for consolidation
and rationalization in the Latin American airline industry. This latest chapter
is a significant milestone in our corporate evolution, giving us the breadth and
scale to better compete with any player in our markets while ensuring our
long-term success. It represents a unique opportunity for all of our employees
and shareholders to form part of one of the leading airline groups in the
Americas."

Germán Efromovich, Chairman of the Synergy Group, said, "We are proud of what
Avianca has achieved over the past few years in terms of the strong corporate
culture we have developed and the quality of service we are providing. With this
formidable partnership we will be able to build further on that success and
provide our passengers access to what is now Latin America`s leading airline
network, as well as creating opportunities for further growth and development
for all our employees."

Fabio Villegas, CEO of Avianca, who will serve as CEO of the future group once
the transaction closes, said, "This is a great day in the history of aviation.
We are bringing together two of the world`s oldest airlines - two institutions
with a unique focus on servicing their customers and on the well-being of all
their stakeholders - to create an industry leader. I look forward to working
with all of our employees as we execute on a vision to build not only the
biggest, but the best, airline in the region."

One Group, Two Airlines

Avianca and TACA have nearly USD 3 billion in aggregate annual revenues, serve
more than 100 destinations worldwide (including 75 cities in Latin America, the
largest number of any carrier), operate a fleet of 129 aircraft, employ
approximately 12,000 people, and have over 3 million frequent-flyer program
members.

Upon closing of the transaction, the new group`s senior management team will
combine the leadership of both companies: Avianca CEO Fabio Villegas will become
chief executive officer of the new group. TACA COO Estuardo Ortiz will become
the chief operating officer and Avianca CFO Gerardo Grajales will become the
chief financial officer.

The two airlines will continue to operate as separate companies, maintaining the
same reporting lines within each organization, thereby building on the strengths
of their respective brands, hubs and networks, while coordinating operations to
provide seamless services to their passengers throughout the combined network.

Transaction Structure

The shares of both Avianca and TACA`s controlling entities will be contributed
to a new holding company in a business combination worth in excess of US dollar
3 billion. Each operating company will remain independent while the new group
will leverage best business practices across both organizations.

Following the transaction, both sets of shareholders will share in the
governance of the newly created group. TACA CEO and Chairman of the Board
Roberto Kriete will become chairman of the new group`s Board of Directors.

The transaction is subject to regulatory and other customary approvals.

Advisors

Bank of America Merrill Lynch and Caoba Capital acted as financial advisors to
TACA and Greenberg Traurig acted as counsel. Simpson Thacher & Bartlett and
Gómez-Pinzón Zuleta acted as counsel to Avianca.

Grupo Taca Holdings Ltd
Claudia Arenas Bianchi, 502-2279-5700 (intl)
news@taca.com
http://news.taca.com

Copyright Business Wire 2009