Avianca Secures $300M ABGF Financing for CFM56 Engine MRO

Avianca has secured up to $300 million in financing backed by the Brazilian Agency for the Management of Guarantee Funds and Guarantees (ABGF) to fund MRO services for its CFM56 aircraft engines at GE Aerospace facilities in Brazil.

Announced in a press release on September 8, 2026, the transaction represents the first time a non-Brazilian airline has utilized the ABGF framework to finance aircraft engine maintenance. Citibank arranged the financing structure, which relies on Export Credit Insurance (SCE) provided by the Brazilian government to support the export of high-value services.

Abra Group leverages regional MRO capabilities

Avianca, a member of the Abra Group alongside Gol Linhas Aéreas and Wamos Air, will direct the funds toward engine shop visits at GE Aerospace’s Celma network. The financing provides the carrier with dedicated capital for heavy engine maintenance, a major cost center for commercial airlines operating mature narrowbody fleets.

“Maintaining a reliable and efficient fleet is fundamental to delivering the experience our customers deserve. According to Abra Group’s approach to fleet synergies and growth, this agreement provides additional flexibility to execute our maintenance plans while continuing to invest in the resilience, reliability, and performance of our operation,” said Felipe Gutierrez, Chief Operating Officer of Avianca.

The Avianca agreement follows a similar move by its sister airline. On August 13, 2026, Gol Linhas Aéreas secured a $160 million financing line under an identical ABGF guarantee structure for engine MRO services at the same GE Celma facilities.

Bolstering Brazil’s aerospace export sector

The GE Aerospace Celma operation spans sites in Petrópolis, Rio de Janeiro, and Três Rios. According to the company, the Brazilian network conducts nearly 25 percent of the manufacturer’s internal engine maintenance work globally.

Maíra Madrid, President of ABGF, stated that supporting high-technology services performed in Brazil generates value, skilled employment, and foreign exchange earnings. She noted that the transaction helps strengthen the international presence of Brazilian companies and expands the country’s participation in global aerospace value chains.

“This innovative financing solution, a first-of-its-kind with ABGF, provides Avianca with access to world-class maintenance and overhaul services at our Celma facility in Brazil. We look forward to building on this initiative to deliver even greater value for our customers across the region,” said Mahendra Nair, Group VP of Global Commercial Sales at GE Aerospace.

The Avianca MRO financing was announced on a busy day for GE Aerospace. Separately on September 8, 2026, the engine manufacturer agreed to acquire precision castings supplier Consolidated Precision Products (CPP) for $11.75 billion, a move designed to expand its control over specialized castings for commercial aerospace and defense applications.

AirPro News analysis

We view the consecutive ABGF-backed financing deals by Abra Group airlines as a calculated strategy to optimize heavy maintenance costs across the holding company’s fleet. By tapping into Brazilian state-supported export credit, Avianca and Gol can secure favorable financing terms for capital-intensive CFM56 shop visits without straining their primary balance sheets. This arrangement also cements GE Aerospace’s Celma facility as a critical node in the Latin American aviation supply chain, aligning operator needs with Brazil’s strategic push to export high-value aerospace services.

Sources: Avianca via PR Newswire