Despite the recent news that Itapemirim Transportes Aéreos –the short-lived Brazilian low-cost carrier– could get a second life, it looks pretty likely that the airline will permanently lose its Air Operator Certificate (AOC) within the next few days. What would need to happen if a new management team tries to restart the airline? Let’s investigate further.
Bye-bye, Itapemirim
Itapemirim Transportes Aéreos ceased operations last December after nearly six months of flying domestically in Brazil. Around the same time, Brazil’s National Civil Aviation Agency (ANAC) suspended the airline’s air operator certificate, leaving a door open for a possible comeback if Itapemirim could pay its debts and financially reorganize.
Nonetheless, that’s now over. On Thursday, the Brazilian Government definitively revoked Itapemirim’s AOC. By doing so, ANAC is putting an official end to the brief history of Itapemirim, an airline that looked to become one of Brazil’s largest carriers but failed to do so.
Appealing
Itapemirim’s current management will appeal the definite suspension of its AOC. As reported by the local media outlet Diario do Transporte,
“In view of the Air Operator Certificate revoking by the National Civil Aviation Agency, ITA Transportes Aéreos (informs) it is still negotiating to reestablish its authorization to operate. The company informs that it will appeal against the announced decision. It continues to negotiate with interested investors in the purchase, aiming to maintain jobs and compliance with its suppliers.”
Even if Itapemirim wins the appeal against the measure taken by the Brazilian civil aviation authorities, the company has a grueling road ahead. Itapemirim may have just lost its possible leading investor.
Is there a future for the company?
As we reported last month, Adalberto Bogsan, Itapemirim’s CEO said that Itapemirim Transportes Aéreos was recently sold to Baufaker Consulting, a Brazilian company based in Brasília.
Baufaker Consulting was said to be interested in relaunching the airline, leasing up to five Airbus A320ceo. The company had begun a capitalization process, looking to face the nearly US$40 million debt it has, according to Adalberto Bogsan, former Itapemirim’s CEO.
Nonetheless, Baufaker Consulting has formally withdrawn its offer to acquire Itapemirim this week. As reported by Aeroin, Baufaker believes there are many uncertainties around the failed airline. In the future, it could explore a new business deal, though.
One problem is that any new investor interested in relaunching Itapemirim would have to go through the whole process of setting up an airline from the ground, because the company is now set to lose its AOC.
The failed Itapemirim
Itapemirim’s life was short and painful. The airline began flying on June 29, 2021. It operated flights from 13 Brazilian airports, including São Paulo Guarulhos, Brasília, Belo Horizonte-Confins, Florianópolis, and Rio de Janeiro-Galeão.
It had a fleet of seven aircraft, including six Airbus A320-200s and one Airbus A319-100 leased with ALAFCO, Carlyle Aviation Partners, and Deucalion Aviation.
Throughout its six-month history, Itapemirim carried 416,500 passengers and obtained a 0.62% of the Brazilian market share last year.
Itapemirim Transportes Aéreos was the latest venture of Itapemirim, a ground transport company that is currently in a bankruptcy process in Brazil. Despite being in a financial reorganization, the company launched an airline, looking to compete against Azul, LATAM, and GOL, ceasing the open market left after the disappearance of Avianca Brazil in 2019.
Do you think Itapemirim Transportes Aéreos has a shot at a comeback? Let us know in the comments below.
Source: Diario do Transporte, Aeroin.