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Frederico Pedreira, CEO of Avianca, shared his insights into the airline’s operational strategies, financial performance, customer engagement efforts, and leadership philosophies. Pedreira’s comprehensive approach outlines a future where sustainability, growth, and customer satisfaction are at the forefront of Avianca’s mission.
Operational Strategies: A Sustainable and Efficient Future
Pedreira highlighted Avianca’s innovative strategies to reduce the airline’s carbon footprint and optimize operational efficiency. “Our Cost Accounting solution includes carbon emission tracking and optimization functions,” Pereira stated, underlining the airline’s commitment to environmental sustainability.
Pereira was optimistic about Avianca’s financial health and expansion goals, discussing strategies for passenger growth and fleet expansion. “Last year, 32,000,000 passengers… and we’re going for 40,” he shared, signaling ambitious growth targets. The CEO also touched on financial restructuring, emphasizing efforts to streamline costs: “Our CASK ex-fuel pre-pandemic was 6.2 cents; today is around 3.8. And we’re still not happy.”
Challenges and Adaptations: Navigating Through Crisis
Addressing the adaptations required by recent global challenges, Pedreira shared, “We want to get our passengers to their destination safe and on time, both recurrent passengers and new travelers. We compete with buses.” This quote reflects Avianca’s focus on reliability and safety amidst operational challenges posed by the pandemic and other disruptions.
During the Q&A session, Pedreira was asked about Avianca’s partnerships and potential expansions, especially in Brazil and Argentina. He clarified Avianca’s stance on expansion and collaboration, stating, “In Brazil, we have GOL, so there is no reason to have Avianca brand in Brazil because we have our extended family“, referring to Abra Group. “The vision is to have a strong Abra Group throughout the Americas.”
In Argentina, Pedreira said that “we have to wait and see what the new government and its strategy are. For international traffic, the open skies treaty signed with Brazil is a good sign. For domestic traffic, we need to see how things will evolve.”
Avianca’s CEO said about GOL’s Chapter 11 filing, “I believe that the process in Chapter 11 for GOL was necessary; actually, it was one of many companies going through that process. LATAM did an out-of-court restructuring as well.”
Pedreira expressed confidence in GOL’s future, attributing it to the leadership team’s capabilities, many of whom share a history with Avianca. “I know the team that’s leading because most of the same one in Avianca… I know it went very well. So, I’m 100% sure that it will take it to an exact and successful [outcome]. I have no doubts about it,” he affirmed, showcasing a deep belief in the resilience and potential of regional airlines to overcome financial hurdles and emerge stronger.
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