PARIS/SAO PAULO Oct 19 Irish aircraft leasing
company Avolon is suing Brazilian airline Avianca Brasil
and its parent company for an alleged default on a
lease for an Airbus jetliner, leaving more than $4
million in unpaid rent, U.S. court documents show.
Avolon is also suing both the airline and its parent,
Synergy Aerospace Corp, for breach of contract over the
two-year-old lease for an A330 jet and is seeking $5 million in
damages, according to a complaint seen by Reuters.
Dublin-based Avolon declined to comment.
A spokesman for Avianca Brasil said the company was not
aware of any court case and would not comment on confidential
Synergy Aerospace did not immediately reply to a request for
The lawsuit comes as the airline considers options for a
possible international partner to help it to weather Brazil's
worst recession in decades.
Avolon is owned by China's HNA Group, which has expressed
interest in acquiring both Avianca Brasil and Panama-based
sister airline Avianca Holdings, Reuters reported in
Both of the airlines are controlled by Bolivian-born
entrepreneur German Efromovich's Synergy Group.
Delta Air Lines and United Continental Holdings
are also seen as potential suitors.
Avianca Brasil's chief executive, Frederico Pedreira, said
last month that there were no clear signs of Brazilian air
travel demand rebounding by the end of this year.
The lawsuit was filed on Avolon's behalf by a bank trustee
in the southern district of New York on Oct. 14, the same day as
Avianca Brasil celebrated taking delivery of its first Airbus
According to court documents, Avolon says it leased the
larger and longer-range A330 jet to the airline in June 2014 for
$849,000 a month in rent, plus other costs, under a 10-year
"Over time, the lessee fell behind on its payment
obligations under the lease," Avolon's complaint alleged, adding
that as of Oct 11, the airline owed $4.6 million plus interest.
(Reporting by Tim Hepher and Brad Haynes; Editing by David