Avianca Holdings S.A. Fires Back at Claims of Kingsland Holdings Ltd.

Avianca affirms commitment to long-term strategic goal of a
commercial alliance with a world-class partner and a significant
infusion of new capital, which is unquestionably in the Company’s best

NEW YORK & BOGOTÁ, Colombia–(BUSINESS WIRE)–Today Avianca Holdings S.A. (Avianca or the Company) affirmed its
strategic plans to explore an alliance with United Airlines and to seek
a capital infusion through an equity offering to its shareholders. In
New York State Court, Avianca filed a lawsuit against Kingsland Holdings
Ltd. (Kingsland) and board member Roberto Kriete to stop their improper
actions aimed at blocking Avianca’s progress. In addition, Avianca filed
a motion to dismiss all of Kingsland’s claims made in a lawsuit earlier
this month and opposed Kingsland’s motion for an injunction to stop the
United negotiations.

Avianca’s legal papers detail Kingsland’s attempts to block Avianca from
having negotiations with United about entering into a strategic
commercial alliance, a critical component of the Company’s strategy to
become the leading Latin American airline. The proposed commercial
partnership Avianca is negotiating with United, a world-class airline,
would provide important growth opportunities and valuable synergies for

Avianca’s legal papers also demonstrate that Avianca has at all times
performed its role under the parties’ shareholder agreement, while
Kingsland has explicitly breached its obligations. Avianca points out
that Kingsland’s legal maneuvers are a heavy-handed attempt to obtain
greater rights in the courtroom than it previously negotiated for and
agreed to in the parties’ shareholder agreement.

Avianca’s suit asks the court for an order preventing Kingsland from any
further dissemination of the Company’s confidential information,
requiring Kingsland to comply with the dispute resolution section of the
parties’ shareholder agreement, and requiring Kingsland’s
representatives to cease interfering with the shareholder agreement. The
Company also requested that the court dismiss Kingsland’s meritless

Hernán Rincón, Avianca´s CEO said, “Our Company is committed to its
passengers and the development of its business across the continent. Our
strategy is focused on superior service and operational excellence, to
offer our clients the best choices and more opportunities to travel. We
are looking beyond the litigation. Avianca remains committed to
achieving its two strategic objectives approved by the Board: entering
into a commercial alliance with a world-class airline and raising needed
new capital.”

About Avianca Holdings S.A.

Avianca Holdings S.A. (NYSE: AVH) (BVC:PFAVH) comprises the airlines:
Aerovías del Continente Americano S.A. Avianca (Avianca), Tampa Cargo
S.A.S., incorporated in Colombia, Aerolineas Galapagos S.A. – Aerogal,
incorporated in Ecuador, and the TACA Group companies: TACA
International Airlines S.A., incorporated in El Salvador, Lineas Aereas
Costarricenses S.A., LACSA, incorporated in Costa Rica, Trans Américan
Airlines S.A., incorporated in Perú, Servicios Aéreos Nacionales S.A.,
SANSA, incorporated in Costa Rica, Aerotaxis La Costeña S.A.,
incorporated in Nicaragua, Isleña de Inversiones S.A. de C.V., ISLEÑA,
incorporated in Honduras and Aviateca S.A., incorporated in Guatemala.


Laurie Hays
Brunswick Group
+1 212-333-3810
+57 318-238-7886