Azul (AZUL) has entered a non-binding agreement with a bankrupt Avianca Brasil to “acquire certain assets”, Azul (AZUL) announced on March 11, 2019.

The “certain assets” include Avianca Brasil’s operating certificate, 70 pair of slots and approximately 30 Airbus A320 aircraft that should be “transferred to a new entity free and clear of all debts and liabilities”. If the deal goes through and is approved, the purchase could be worth around $105 million.

The São Paulo-based carrier’s fleet consists of all-Airbus aircraft comprising A318s, A319s, A320s and A330s. AVHOQ</a>) -Brasil”>Planespotters.net data indicates that among A320s, there are 26 A320-200s and seven A320neos, all apparently leased.

However, the deal remains subject to a number of conditions precedent, including due diligence, regulatory and creditors approvals, and the conclusion of Avianca Brazil’s judicial reorganization ‒ a process, which could take around three months, Azul (AZUL) estimates.

Avianca Brazil filed for bankruptcy on December 10, 2018, blaming the “reluctance” of its lessors to reach an “amicable agreement” with the airline in a statement on social media.

Three leasing companies, including BOC Aviation and Aircastle subsidiary Constitution Aircraft Leasing have sued the Brazilian carrier for the return of some 30% of the carrier’s fleet.  The three lawsuits totaled 14 planes, according to media reports. The airline is believed to owe lessors around $100 million, in addition to other $125 million debts to suppliers