German Efromovich is a well-known name in the airline industry across the Latin American region. And he should be. Not long ago, the Bolivian-born entrepreneur was the owner of the South American giant airline, Avianca. Let’s take a deeper look at Aeroitalia’s new non-executive president.
Efromovich, the airline businessman
Germán Efromovich made its money in the booming oil business. Before becoming an airline mogul, he and his brother José made top dollars in the oil, building, and even health sectors. They ran a company called Synergy Group.
In Brazil, he established an air taxi company, OceanAir, which later would be known as Avianca Brasil (despite not being directly connected to Avianca).
Efromovich entered the commercial aviation business in 2004. The year prior, on March 21, 2003, Avianca Airlines filed a petition for relief under Chapter 11 of the US Bankruptcy Court. The airline took on its fair share of difficulties following the terrorist attacks in the United States in 2001.
In March 2004, Synergy Group publicly announced its interest in making a substantial investment in Avianca. Synergy Group beat an offer from Copa Airlines and Continental Airlines and got hold of the company.
Between 2012 and 2015, Efromovich attempted to buy TAP Airlines, the Portuguese carrier which was in financial trouble. He lost the bid to another airline mogul, David Neeleman, the founder of Azul and Breeze Airways.
After its first Chapter 11, Avianca grew stronger. The airline became Latin America’s second-largest operator behind LATAM and survived, while other historical carriers faded, like Varig and Mexicana de Aviación.
Avianca under Efromovich grew in Colombia, Central America, Ecuador, Peru, and Brazil. Under his management, Avianca and TACA merged under one brand. Nonetheless, the first hints of trouble appeared in Brazil.
Germán Efromovich saved Avianca in 2004. Photo: Getty Images.
He lost Avianca
In December 2018, Avianca Brasil filed for bankruptcy protection. The airline was heavily in debt and ceased operations the following year. At the same time, Synergy Aerospace failed to pay a loan worth US$456 million which United Airlines gave to BRW Aviation, a branch of Synergy Group. The loan had, as a guarantee, Synergy’s shares in Avianca.
Following the debt default, United Airlines commenced the exercise of certain remedies and appointed Kingsland Holdings as Avianca’s majority owner of voting shares. Efromovich was ousted from the company he helped to save.
Avianca then proceeded to have two financial reorganizations in a row. The first was a private reorganization in 2019, and the second was the airline’s second Chapter 11 as the COVID-19 pandemic brought chaos to the airline industry.
In 2020, Efromovich was reportedly interested in acquiring failing Alitalia. In the end, he was unable to do so but launched its own Italian carrier instead.
Efromovich is launching a new airline, Aeroitalia. Photo: Aeroitalia
Aeroitalia
Today we were introduced to a new airline startup called Aeroitalia. The carrier expects to have its base in Forlì’s Luigi Ridolfi Airport (FRL) and will operate a fleet composed of Boeing 737-800s.
Aeroitalia is an airline looking to compete directly against ITA Airways following the market exit of Alitalia and Air Italy.
The Board of Directors of Aeroitalia is composed of German Efromovich as the non-executive president, Marc Bourgade, a French banker as the chairman, and Gaetano Intrieri as the CEO.
German Efromovich said,
“Today is an important day not only for the birth of Aeroitalia but also for the entire commercial aviation in Italy and across the world. An airline has been created and will offer everyone the opportunity to fly, strictly respecting standards of safety, comfort, and excellence in service.”
What do you expect about Efromovich’s latest airline venture, Aeroitalia? Let us know in the comments below.
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