Consulting consortium to help with MIP's El Salvador communication strategy

05 May 2017 Consultancy.lat

As part of the EU’s Multiannual Indicative Program 2014-2020, Ecorys and Aecom have been hired to create and enact a communications strategy for sustainable development in El Salvador. The international consortium will work with the EU and local players to communicate the importance of the program and the value of cooperation between the country and Europe. 

The Multiannual Indicative Program 2014-2020 (MIP) aims to support Latin American countries in strengthening their institutions and achieving their development goals, whilst cultivating a bilateral partnership between the region and Europe. Objectives of the MIP include supporting the democratic process and institutions, whilst also facilitating the countries' transition into a green economy. The program with tackle both socioeconomic development issues and undertake strategic and localized climate resilience measures.

Due to high levels of environmental degradation, such as coastal erosion and deforestation, El Salvador is particularly vulnerable to the effects of climate change. The program will implement policy measures and environmental protection programs to adapt the country to better face the threat of a changing climate. These objectives will arrive alongside a number of strategic cultural initiatives that include: fostering youth and social inclusion, tackling gang crime rates, and promoting formal employment within SMEs. By fostering policies of good governance and protecting fundamental human rights, the program aims to promote domestic growth as well as integrate the country into the world economy. 

Consulting consortium to help with MIP's El Salvador communication strategy

The launch of a four-year communication strategy will help the MIP to “raise awareness of the importance and impact of EU cooperation in El Salvador in achieving its development objectives independently of funding sources or mechanisms,” said a spokes person for Ecorys. The firm is part of a consortium together with Aecom that have been been appointed to design and carry out the comms strategy in the country.

The communication strategy will be divided into four implementable segments. The first phase of the strategy is to develop a communication and visibility plan, followed by a working plan, a socialization plan, and an institutional relations plan. The consortium plans to create continuity across the board by bring in local experts and domestic companies to ensure the strategy’s success. 

Avianca Brasil needs major restructuring effort to stay flying

18 February 2019 Consultancy.lat

Brazilian airline Avianca Brasil will need to sell 14 of its 50 aircraft and improve its operational efficiency, if it wants to continue flying while being able to repay its creditors, according to an analysis by Galeazzi & Associados. 

The São Paulo based management consultancy was hired by Avianca Brasil in December shortly after the airline filed for bankruptcy protection. Consultants of the firm have since assessed the financial performance of the company and crafted restructuring plans in a bid to turn Avianca’s fortunes. Galeazzi & Associados is also exploring future options for the airline, which include finding a partner, a buyer, or even filing for bankruptcy.

Following a number of payment defaults, Avianca’s main creditors, aircraft lessors Aircastle and General Electric Capital Aviation Services, sounded the alarm bells on the company’s financial position. The two creditors have in the meantime been seeking to repossess their planes, however, their attempts have so far been successfully fended off by Avianca, allowing the company to maintain its current flight schedule. According to Reuters, consultants from Galeazzi & Associados have visited the carrier’s creditors to discuss scenario’s and potential measures. Concrete results have though not materialised.Avianca Brasil needs restructuring effort to stay flying

In the background, Avianca is negotiating with Elliott Management, a hedge fund, about a 250 million real ($69 million) loan, sources close to the matter disclosed. As part of bankruptcy protection process, any investment would need to happen within the regulatory guidelines, likely in the form of debtor-in-possession financing. Brazil’s fourth-largest airline plans to ask the judge overseeing its bankruptcy for more time to reach a final deal, pointing at the progressive loan talks held with Elliott Management. 

In the analysis by Galeazzi & Associados, the advisors conclude that a major restructuring effort is required for Avianca Brasil to continue its operations. Around 14 of the 50 aircraft would need to be disposed, in order to optimise the capacity usage of the fleet. As per the plan, 36 aircraft would combined be capable of achieving 235 flights per day. The sale of the aircraft would provide a needed buffer to repay creditors.

On top of this, the airline will need to reduce its operational expenses and attract investments to the tune of $75 million to stay afloat.

Last year, another Latin American airline, Aerolíneas Argentina called in the help of an external consulting firm to reshape its loyalty program.