sustainability anual report PDF

2014 Social Responsibility & Sustainability Report
Avianca Holdings S.A.
Avianca Holdings Social Responsibility & Sustainability Committee
Director
Fabio Villegas Ramírez, Executive President and Chief Executive Officer (CEO)
Coordinators
Gilma Úsuga, Communications & Corporate Affairs Director for Colombia and Europe
Claudia Arenas, International Communications and Corporate Affairs Director
Permanent Participants
Eduardo Asmar, Corporate Planning Vice-President
Elisa Murgas, General Counsel
Rosa Stella Patiño, Company and Corporate Affairs Legal Manager
Consuelo González, Industrial Safety, Occupational Health and Environmental Care
Manager
María Andrea Ramírez, Business Analyst Manager of the CEO
2014 Social Responsibility & Sustainability Report
Editorial Coordination: Communications & Corporate Affairs Directorate
Asessment and Production: CREO Constructores de Responsabilidad y Ética
Organizacional
Scope and Coverage: This report corresponds to the management of Avianca Holdings
S.A. during the 2014 fiscal period.
Table of Contents
1. Avianca Holdings S.A. Profile ......................................................................................... 3
2. Letter from the CEO ...................................................................................................... 9
3. About this Report..........................................................................................................10
4. Avianca Holdings’ Commitment to its Shareholders.....................................................12
5. Avianca Holdings’ Commitment to Generating Value ...................................................18
6. Avianca Holdings’ Commitment to Its Strategic Partners .............................................32
7. Avianca Holdings’ Commitment to the Environment ................................................... 36
8. Avianca Holdings’ Commitment to Its Employees ....................................................... 52
9. Avianca Holdings’ Commitment to Social Development ..............................................76
10. GRI Key Indicators G4.................................................................................................87
1. Avianca Holdings S.A. Profile
Avianca Holdings S.A. (hereinafter “the Holding Company”) is a company incorporated in
Panama, comprised of, among other companies, several air transportation companies
that operate domestic and international flights: Aerovías del Continente Americano S.A.
Avianca and Tampa Cargo S.A.S. incorporated in Colombia, Aerolíneas Galápagos S.A
AeroGal incorporated in Ecuador, and the Grupo TACA companies: TACA International
Airlines S.A. incorporated in El Salvador, Líneas Aéreas Costarricenses S.A. (LACSA)
incorporated in Costa Rica, TransAmerican Airlines S.A. (formerly TACA Perú)
incorporated in Peru, Servicios Aéreos Nacionales S.A. (SANSA) incorporated in Costa
Rica, Aerotaxis La Costeña S.A. incorporated in Nicaragua, Isleña de Inversiones C.A. de
C.V. (ISLEÑA) incorporated in Honduras, and Aviateca S.A. incorporated in Guatemala.
The Holding Company’s main investments include passenger, cargo and courier air
transportation companies and other companies that carry out activities related to air
transportation services, such as tourist services, engineering services, maintenance
services, training services, and specialized services for air transportation company
operations.
In this report, the word “Holding Company” refers solely to Avianca Holdings S.A., as the
controlling, investing company. The word “Company” refers to Avianca Holdings S.A. and
its subsidiaries, especially for the description of company practices and programs that are
used by the controlling, investing company as well as by the companies that operate the
Holding Company’s lines of business.
In the event that the report refers to actions carried out by any one (1) or more of the
subsidiaries, the company that carried out such actions will be specifically mentioned by
name. And when the report refers to “the subsidiaries”, “the Avianca Holdings’
companies”, “the operating companies”, “the affiliates”, or “the Holding Company’s
subsidiaries”, it will be understood that the actions were carried out by each and every
one of them or have been implemented for them.
The passenger airlines and the cargo airlines under the Holding Company met the
company goals in 2014, thanks to:
- A 169-aircraft operating fleet for passenger transportation and 5 aircraft
exclusively for cargo transportation
- 3 passenger hubs located in Bogotá, San Salvador, and Lima enabling fast
connections among domestic flights and international flights, and cargo operating
centers in Miami and in Quito
- Direct operation to 106 cities in the Americas and in Europe, plus more than 1,300
destinations worldwide, connected through codeshare and interline alliances with
Star Alliance member airlines
-
-
-
A work force comprising more than 20,000 direct hire and indirectly contracted
employees, duly trained to perform the different jobs related to their commercial
activities and to airline services in general in a safe, effective manner
The LifeMiles reward program, with more than 5.8 million members who have
many opportunities to accrue and redeem their miles in flights, hotels, products
and services around the world
More than 26 million passengers transported in 2014.
Strategic Focus
The Holding Company is the Strategic North that guides the subsidiaries’ activities and,
as the controlling company, governs their administrative management.
Mission
We fly and serve with passion to earn your loyalty
Vision
To be the leading Latin American Airline preferred around the world.
- The best place to work
- The best option for customers
- Exceptional value for shareholders
Values
-
Safety
One team
- Honesty
- Excellence
- Passion and Warmth
Corporate Goals 2015
The 2010-2015 corporate goals set by the Holding Company are:
Profitability: To improve EBIT1 and diversify the business units to enhance
profitability.
Strategic Positioning: To strengthen and optimize the hubs and route
networks throughout the domestic markets in Colombia, Central America,
Peru, and Ecuador. To increase operating productivity by simplifying and
integrating operations under legal and regulatory requirements.
Customers: To consolidate customer service, offering differentiation through
our service based on Latin American Excellence and acting as one sole
company for our customers.
Employees: To make Avianca the best place to work. To do so, the Company
seeks to adopt the Company values as our work pillars. The final goal is to
consolidate an in-house culture focused on customer needs.
1
EBIT: Earnings before Interests and Taxes
Awards and Acknowledgements
Awards
Freddie Awards
LifeMiles: ”Best
Mile Redemption
in the Americas”
Skytrax
Best Airline and
Best Service Staff
The
Leading
Airline in Tourism
e-Commerce Award
e-commerce in
Colombia
Latin Music Marketing The Best Tour
Awards
Sponsorship
The frequent flyer program of the Avianca
Holdings S.A. member airlines received the
top award for the functionality of the
LifeMiles mile redemption process, as well as
for the many options that the program offers
for redeeming miles for trips, hotels, products
and services around the world.
Passengers acknowledged the excellence and
professionalism of Avianca employees with
the Skytrax Awards for Central America and
the Caribbean.
This award acknowledges companies in the ecommerce sector and their work in
empowering the digital economy.
Fonseca Concert at 30,000 Feet
Highlights Avianca’s baggage processing in
the Bogotá Hub with the Star Alliance Priority
Baggage Delivery Regional Award
Avianca received this award for having one of
Avianca in the
the best, fastest, most secure online
“Best
ePremios Colombia en
transaction websites. The Avianca website
commerce
Línea
was said to have some of the best content,
Initiative”
interaction, design and functionality in the
category
country.
This award was given to the airline for
showing its support through tangible
Teletón El Salvador
Avianca
Corporate Social Responsibility (CSR)
activities.
Cámara Colombiana de
Informática
y
Telecomunicaciones
Best e-commerce initiative in Colombia for
(CCIT) (Colombian IT and Avianca
having one of the best, fastest, most secure
Telecommunications
online transaction websites.
Chamber)
Premios
Colombia en Línea
Star Alliance
Avianca in
Bogotá Hub
the
Member of the Avianca Holdings S.A. Board of
Directors, Mr. Roberto Kriete received the
Colombian Ministry of
2014 National Tourism Award for his
Avianca Holdings
Tourism. 2014 National
invaluable contribution to aviation in El
S.A.
Tourism Award.
Salvador and to the development of flight
connectivity, hence driving the tourism
industry in the country and in the region.
Passengers rated Avianca employee’s
Premiación
customer service skills at 10 airports. The
Fundamentos
del
evaluation criteria were based on the
Avianca
Servicio
customer service standards that comprise
Colombia.
Modelo CEL -Constructores de Excelencia
Latina (Latin Excellence Builder Model).
Acknowledgements
Aviateca received IOSA
Avianca
re-certification
Acknowledgement for
best
A320
aircraft
technical reliability in
the Americas
The 100 Colombian
companies with the best
employees, according to
Merco Personas 2014.
The employees chose
the top 10 companies
with the best human
resources according to
Merco Personas 2014
MERCO Personas
ISAGO Re-certification
Avianca
Avianca is continuously improving its
processes, reaching higher quality and
operational safety standards.
Acknowledgement to the design and precise
execution of technical processes in the
Avianca fleet.
Avianca Holdings
Acknowledgment to Avianca’s highly trained
held sixth place,
personnel.
with 5,833 points
Avianca Holdings Acknowledgement by employees of the
held third place.
companies with the best human resources
Acknowledgement to the company with the
best human resources in Colombia. The
variables considered in the evaluation include,
Avianca held sixth
among others, the company’s level of success,
place
reputation, employees’ feeling of pride, work
environment, professional development, and
recognition.
Avianca
The renewal of Avianca’s registration as
provider until 2016 enabled it to provide
ground services through its Avianca Services
business unit.
Certified
as
an
International Pet and
Animal Transportation Avianca Cargo
Association
(IPATA)
member.
This makes it the Number One member
company in Latin America for the safe
transportation of live pets and animals.
Avianca’s VIP Lounge in
Priority Pass program members and users
Cali is the best VIP Avianca’s
VIP
chose Avianca’s VIP Lounge in Cali as the best
lounge in Latin America Lounge in Cali
one in the region.
and the Caribbean
CIA de Talentos
Avianca held ninth
place
as
the
company in which
students
and
Avianca held ninth place as the company in
graduates
which Latin American students and graduates
dreamed
of
dreamed of working.
working,
according to a CIA
de
Talentos
survey.
Acknowledgement
to
Avianca Holdings Highlighted the Company’s investor relations
Issuers
Investor
S.A.
and information disclosure practices.
Relations(IR)
The most valuable Colombian brands are
Acknowledgement
as
known for their long tradition, constant
one of the most valuable Avianca came in
updating, and clear response to the functional
Colombian
brands, 14th
and emotional needs of an ever-changing
according to Brandz.
market.
The company readjusted its processes in order
Responsibility
as
a Avianca Holdings
to comply with the regulating financial
Public Sector Company S.A.
agencies’ requirements.
German Efromovich, Avianca Board of
Directors President as well as Roberto Kriete,
The Latin American and
Member of the Avianca Board of Directors
Caribbean Air Transport
received the Federico Blonch award for their
Association
(ALTA). Avianca
exceptional leadership, vision in the aviation
Federico Blonch Award.
industry, spirit of corporative initiative, and
Nassau, Bahamas.
their sense of innovation, cooperation and
integrity.
Net
Promoter Score (NPS)
Avianca was in
Acknowledgement
to
second place with
Avianca in the CORE
46% accumulated
market category
in 2014
G4-PR5
The Salvadorian Civil
Aviation
Authority Avianca Holdings
(Autoridad de Aviación S.A.
Civil – AAC)
Net Promoter Survey for
Avianca
Internal Promoters
Enhanced IOSA Auditing TACA
ACLASS
ISO/IEC
170252005 International Avianca
Standard
Estudio CÍA de Talentos Avianca
Business
Magazine
Traveler
Avianca
Through quantitative interviews to passengers
at airports in Bogotá, Cali, Medellín,
Guatemala, Quito, Guayaquil, Lima, San
Salvador and San José, Avianca customer
relations were measured using variables such
as customer satisfaction, disposition in
assessing the customer, and re-purchasing,
and customer satisfaction was evaluated for
the different points of contact during
customers’ flight experience.
Highlighted Mr. Roberto Kriete’s valuable
contribution to the development of
Salvadorian
civil
aviation.
The
Acknowledgement
to
executives
and
companies for El Salvador was attended by
diplomats, businessmen, aviation authorities,
and the media, among others.
Every quarter, 34 areas take a survey for
measuring internal customer satisfaction. The
survey is measured in net promoters (NPS). In
the first quarter of the year, two company
areas were acknowledged: the Specialized
Services Category and the Mass Services
Category.
Renewal of the IOSA registration for COA
TACA International. TACA became one of the
first airlines in Latin America to voluntarily
request the Enhanced IOSA Auditing Model
and to receive the certification.
Avianca had its Metrology Laboratory reaccredited and re-certified under the ACLASS
ISO/IEC International Standard by complying
with the requirements demanded of testing
and calibration laboratories.
Avianca is among the Companies That Young
People Dream About - 2014. The Cía. de
Talentos study measured Latin American
students’ and new graduates’ preference of
best company to work in. It occupied fifth
place.
Business travelers and readers of the Business
Traveler Magazine chose Avianca as the Best
Airline in South America and in Latin America.
2. Letter from the CEO
I am pleased to present this report that tells a story of innovation, transformation and
learning generated by several generations of men and women who have made Avianca
come to life in its 95 years of uninterrupted service to the country and to the region.
This sixth Social Responsibility and Sustainability Report proudly confirms the
importance of Avianca’s operations in promoting a better life quality and wellbeing for
hundreds and thousands of persons who are part of our value chain.
In this document, developed in accordance with the Global Reporting Initiative G4
Guidelines, we are fortunate to present significant advancements in environmental, social
and financial management. In particular, we would like to highlight the adoption of rules
and regulations aimed at underpinning the importance of transparency and integrity in
Avianca employees’ individual and collective actions, to guarantee that Avianca
operations are in harmony with the rights of our stakeholders and with environmental
protection.
Renewing fleet aircraft and applying the highest environmental standards, strengthening
corporate management control mechanisms, and adopting international practices for
human resource management and information management, are among our most
important achievements for this fiscal period.
Essentially, this report shows the relation between the set of duties and commitments
taken on by the organization and our goal to fully embrace our current work and to
ensure the company’s long-term success.
I invite you to carefully read through this report to understand why our work is one of the
main sources of inspiration in our lives.
3. About this Report
To continue advancing in terms of accountability and strengthening corporate
transparency, Avianca Holdings S.A. presents its sixth Sustainability Report. This
document gathers some of the most important achievements, milestones and lessons
learned from the 2014 management of the Avianca Holdings’ companies.
For the past two years, the Organization has reported its operating companies’ financial,
social and environmental actions through sustainability reports that follow the guidelines
set forth in the Global Reporting Initiative (GRI) Guide. This report follows the GRI G4
Guideline indicators with the general standard disclosure option of “in accordance” and
includes a description of the process for determining materiality.
All areas of the Organization participated in gathering and verifying information for this
report, under the coordination of the Social Responsibility area, accompanied by the
external consulting firm Constructores de Responsabilidad y Ética Organizacional
(CREO).
Relevant Topics
Avianca Holdings S.A. companies defined the content of this 2014 sustainability report
based on the relevant topics that were internally identified and prioritized, which will be
validated with the stakeholders in 2015 and 2016.
Four document sources were used to identify the relevant topics:
The initial list of issues was validated by the Organization’s Sustainability Committee,
with members from different Company areas, who chose and prioritized the important
topics for corporate strategy. The issues were organized following the corporate
commitments with the stakeholders, which enabled building the 2014 Sustainability
Report structure. G4-18
Commitment
Commitment
to its
Customers
1
2
Relevant Topic
Total Safety G4-27
Customer Experience
G4-27
Social Development
Commitment
3
to the External
4 Provider Development
Community
5 Responsible Purchasing
Commitment
to the
Environment
6
7
8
9
10
Commitment
to its
Employees
11
12
13
14
Commitment
to its
Shareholders
15
16
Gas Emissions
Noise
Waste Management
Operation Energy
Efficiency
Employee and
Contractor Health and
Safety
Company-Employee
Relationship
Organizational Culture
and Wellbeing
Learning and
Development
Ethics and
Transparency
Good Corporate
Governance
Generating Value
Chapter
Avianca Holdings’
Commitment to
Generating Value
Avianca Holdings’
Commitment to
Social Development
Avianca Holdings’
Commitment to its
Strategic Partners
Stakeholder
Customers - The
Community at
Large
The External
Community
Avianca Holdings’
Commitment to the
Environment
Customers - The
External
Community
Avianca Holdings’
Commitment to its
Employees
Employees
Avianca Holdings’
Commitment to
Transparency
Avianca Holdings’
Commitment to
Generating Value
The External
Community
Shareholders
Shareholders
4. Avianca Holdings’ Commitment to
its Shareholders
Transparency being an essential imperative, in 2014 Avianca Holdings S.A. continued its
efforts to guarantee that company employees kept the corporate values alive and to
strengthen the mechanisms for timely information disclosure to the market.
During the past year, the Organization made a series of adjustments and carried out
important actions aimed at compliance with the requirements of the American financial
system, given that, for the issuance and placement of American Depositary Shares (ADS)
in November 2013, Avianca Holdings S.A. inscribed itself with the United States
Securities and Exchange Commission (SEC) and lists its ADS on the New York Stock
Exchange (NYSE).
Trading in this important market has led to the Organization making a commitment to
adhere to the corporate rules and regulations and practices applicable to Foreign Stock
Issuers, which demand carrying out the following actions, among others:
Anticorruption Policy (G4 – 56)
It establishes rules of conduct applicable to all employees to guarantee compliance with,
among others, the United States Foreign Corrupt Practices Act (FCPA) and other current
anticorruption laws and regulations applicable to countries where the Avianca Holdings
S.A. companies operate.
The above policy complements the Código de Ética y Normas de Conducta de los
Negocios (Ethics Code and Business Conduct Rules and Regulations) that governs the
Organization, which was adopted by the Board of Directors in February 2013. In this
context, Zero Tolerance was declared for any action that may be considered bribery or
any other corrupt action.
Since its adoption, a sensitization campaign was developed for disseminating the
Anticorruption Policy and the Modifications to the Ethics Code and Business Conduct
Rules and Regulations.
The main topics regulated by the Anticorruption Policy are:
-
Provisions regarding employee conduct and handling relations with government
officials and private sector providers; and
Provisions regarding books and records that guarantee the disclosure of reliable
financial statements.
Insider Trading Policy and Procedure
It is aimed at regulating stock negotiations and the use of important confidential
information by officers from the Holding Company and officers from the Holding
Company’s subsidiaries.
This Policy complements the Ethics Code and Business Conduct Rules and Regulations
section “The Improper Use of Confidential Information”; it establishes restrictions on
negotiating or tipping important confidential information.
The main topics regulated by the Insider Trading Policy and Procedure include:
-
-
Restrictions on stock negotiations or disclosing important confidential
information. Negotiations include the purchase, sale, donation or any other
transaction involving Organization shares listed in the public stock exchange
Defined time frames for officers to negotiate Organization shares within each
fiscal year; and
The procedure for officers to buy or sell shares from the Holding Company’s
subsidiaries.
Adjustments to Corporate Governance Documents
Aimed at adopting some governance practices applicable to foreign stock issuers with
shares listed on the New York Stock Exchange, some modifications were made to the
following documents: The Good Corporate Governance Code, and Rules and Regulations
of the Board of Directors, the Shareholder’s Assembly, the Avianca Holdings S.A.
Auditing Committee and the Avianca S.A. Auditing Committee.
Modifications to the Ethics Code and Business Conduct Rules and Regulations (G4 –
56)
The Code contains the values, principles, and rules and regulations that guide the
reciprocal actions of the Organization and of its employees, actions among employees,
and toward the customers and the community at large, which includes any obligations
stemming from local and international laws and regulations applicable to the subsidiaries
as well as to the employees in each country where they operate and provide services.
The Organization developed dissemination campaigns for the Modifications made to the
Ethics Code and Business Conduct Rules and Regulations, as it is customary whenever
modifications are made to such documents; also, in 2014, direct employees had access to
the e-learning course on the Code, which closed the year with 12,423 certified employees.
There is no obligation to certify knowledge on the Code except for new employees as part
of their orientation process.
Furthermore, aimed at ensuring greater transparency in handling the Ethics Line, third
party reception of employee, customer and provider questions, complaints and
grievances was approved regarding the violation of the Ethics Code and Business Conduct
Rules and Regulations, plus allegations regarding unethical conduct by employees,
administrators or third parties. Through the Ethics Line, employees, customers and
providers can report, in an open, confidential or anonymous manner, suspicions of
violations of the Ethics Code and Business Conduct Rules and Regulations, the
Anticorruption Policy, or any other rules and regulations, policies or behavior standards.
The Ethics Code and Business Conduct Rules and Regulations were complemented,
adding the following items:
-
The Improper Use of Privileged Information
Impartiality and Conflicts of Interest
Provider, Contractor and Customer Relations.
Governance Structure (G4-34) (G4-39)
The Organization has a Corporate Governance structure that guarantees straightforward, transparent administrative management and is governed by the Good Corporate
Governance Code, which contains the rules of conduct applicable to the Organization’s
Administrators.
Sharholders' General
Assembly
President of the
Board of Directors
Board of Directors
Germán Efromovich
President
CEO
Fabio Villegas R.
CFO
Chief Operating
Officer
Santiago Diago
CRO
CFO
Chief Revenue Officer
Chief Financial Officer
Estuardo Ortíz
Gerardo Grajales
Shareholders’ General Assembly
It is the highest level of governance in the Organization and has annual meetings for
verifying the results of the operation, approving the Board of Directors’ and other
administrators’ management report, among other functions.
Board of Directors (G4 – 34)
Pursuant to the Social Compact, the Holding Company’s Board of Directors is comprised
of eleven (11) principal members who are elected by the Shareholders’ General Assembly
for one-year periods with a re-election option, and who may be of any nationality.
There are also six (6) independent members of the Board of Directors who are elected
pursuant to the independence criteria established by the rules and regulations of the New
York Stock Exchange.
Their functions include providing the Holding Company with strategic direction and
establishing general policies, as well as reviewing topics related to management and
compliance with the Holding Company’s strategic goals and financial results; aspects that
are assessed in the quarterly meetings or whenever deemed necessary, governed by the
Board of Directors’ Internal Rules and Regulations.
Composition of the Board of Directors (G4-40)
(March 2014-March 2015)
Germán
Efromovich
(President)
José
Efromovich
Alexander
Bialer
Roberto J.
Kriete
Eduardo
Klepacz
Oscar Darío
Morales*
Mónica
Aparicio*
Isaac Yanovich
F*
Álvaro
Jaramillo
Buitrago*
* Independent members
Ramiro
Valencia
Cossio*
Juán
Guillermo
Serna V*
Board of Director Committees (G4-34) (G4-40)
Auditing Committee
•The Auditing Committee is comprised by independent members of the Board of Directors. This
committee is in charge of supervising the effectiveness of the internal financial control
systems, of internal control in general, and of assessing risk for the Holding and risk regarding
relations among officers
•It also ensures the integrity of the financial statements, compliance with the legal
requirements set forth in the public stock market rules and regulations, and the competence
and independence of the External Auditing team, and it approves internal auditing procedures
and monitors compliance.
•This Committee is comprised by Oscar Darío Morales, Isaac Yanovich, Juán Guillermo Serna and
Mónica Aparicio.
Human Resources and Compensation Committee
•The functions of the Human Resources and Compensation Committee are to establish the
human resources development and management model and strategy and to recommend
the basic philosophy and the objectives and corporate goals regarding compensation for
the Holding's employees.
•This Committee is comprised by Roberto Kriete, José Efromovich, Ramiro Valencia and
Marco Baldocchi.
Financial Committee
•The functions of the Financial Committee are to do detailed follow-up on the Holding's
financial performance, as well as managing associated risks. It is in charge of analyzing and
recommending to the Board of Directors the capital and indebtedness structure of the
Holding.
•This Committee is comprised by Germán Efromovich, Álvaro Jaramillo, Alexander Bialer
and Juan Guillermo Serna.
Conflicts of Interest (G4 – 41)
The Ethics Code and Business Conduct Rules and Regulations and the Good Corporate
Governance Code regulate the prevention, disclosure and handling employee conflicts of
interest and Administrator conflicts of interest.
Except for the Administrator conflicts of interest, all employee conflicts of interest are
handled and resolved by the Ethics Committee.
Any possible Administrator conflicts of interest are handled by the Auditing Committee
and by the Holding Company’s Board of Directors.
Internal Control
In the year 2014, the internal control system and the reports issued by Internal Auditing,
the Fiscal Reviewer’s Office, the Auditing Committee and the Board of Directors, did not
discover material findings that could affect the integrity and truthfulness of the financial
information or compliance with the accounting rules and regulations applicable to the
Organization. Nor were there any frauds that affected the quality of the Avianca Holdings
S.A. financial and accounting information.
Through the Internal Auditing Directorate, the risk matrix documentation was completed
and effectiveness tests were conducted on the control of processes that have a material
impact on the financial statements, thus guaranteeing the reliability of the Company’s
Internal Control.
Furthermore, the Company has done ongoing auditing and monitoring of the key
business processes (Operational, Financial and Technical) aimed at ensuring the
Organization’s proper Internal Control.
Risk Control
The Holding Company is continuously working on the implementation of the Corporate
Risk Management System (RMS) through the identification, assessment, control and
handling of the different types of risks that may affect reaching the Organization’s
Strategic North, in order to protect its assets and to achieve its corporate goals.
The second phase of the RMS implementation finished in 2014; it initiated the monitoring
and follow-up of the first strategic risk map, which led to the first risk map update. Also,
the integration of the different corporate risk management strategies continued, and the
first activity carried out was to align the quality risks and the operational safety risks.
Finally, a diagnosis was made of the status of business continuity management, aimed at
developing a system that will enable the company to continue providing service in the
event of severe business interruptions or disasters.
5. Avianca Holdings’ Commitment to
Generating Value
The Avianca Holdings S.A. economic performance data includes the information of
Aerovías del Continente Americano S.A. - Avianca and its subsidiaries (including Tampa
Cargo in Colombia, among others), and the information of Grupo Taca Holdings Limited
and its subsidiaries (including Taca International in El Salvador, Lacsa in Costa Rica, and
Taca Perú in Peru, among others). All figures are expressed in USD million.
Direct Economic Value Generated (G4-EC1)
In 2014, Avianca Holdings S.A. generated a total operating income of USD 4,703.5 million,
which represents a 2.04% increase as compared to USD 4,609.6 million recorded in 2013.
In the consolidated integral profit and loss statement at December 31, 2014, passenger
transportation revenues continue to represent the largest contribution to AVIANCA’s
EVG, given that this heading recorded USD 3,862.7 million.
Operating Income
(Figures in USD million)
$5,000.00
$4,000.00
$3,000.00
$2,000.00
$1,000.00
$0.00
$4,703.57
$4,609.60
Operating Income by Type of Service Provided
2014 Operating Income Distribution by
Type of Service
Cargo and
others, 18%
Passengers, 82%
Domestic Transportation
(Figures in USD million)
$1,400.00
$1,200.00
$240.13
$196.06
$1,000.00
$800.00
$600.00
$1,071.25
$1,031.30
2014
2013
$400.00
$200.00
$Passengers
Cargo and Courier
International Transportation
(Figures in USD million)
$3,500.00
$3,000.00
$324.73
$308.68
$2,791.47
$2,831.10
2014
2013
$2,500.00
$2,000.00
$1,500.00
$1,000.00
$500.00
$Passengers
Cargo and Courier
Total (Figures in USD million)
Domestic
International
Others
$5,000.00
$275.99
$242.47
$3,116.20
$3,139.78
$1,311.39
$1,227.36
2014
2013
$4,000.00
$3,000.00
$2,000.00
$1,000.00
$-

The heading “Other Operating Income” includes income from the frequent flyer
program, ground operations, leases, maintenance, and interline agreements,
among others.
Financial Investment Revenues
In 2014, Avianca Holdings S.A. received revenues from interests in the amount of USD
17.09 million, and revenues from derivative instruments in the amount of USD 5.9 million.
Total EVG 2014
• $4,726.5 millones de USD*
* The 2013 report did not include Financial Investment Revenues, such as Revenues from Interests and Derivative
Instruments (the value of these items may be found in the Avianca Holdings S.A. and Subsidiaries’ consolidated
financial statements), thus enabling a balanced comparison of the total EVG values reported.
Economic Value Distributed
The total economic value distributed by Avianca Holdings S.A. and all of its subsidiaries in
2014 was USD 4,630.8 million. This amount was distributed among different headings
including fuel purchases, operational costs and provider costs, contractor and employee
salaries and benefits, government tax payments and dividend payments, financial
obligations, and social investment.
Total EVD 2014
• $4,630.8 millones de USD
Costs invested in fuel purchases increased near 1.51%, from USD 1,325.7 million in 2013 to
USD 1,345.7 million in 2014. Such growth still indicates a constant upward trend in
consumption, mainly due to the increased number of routes and flight frequency for
destinations operated by the Holding Company’s airlines.
Operational costs, comprised of the headings passenger services, infrastructure and
maintenance services, depreciation and amortization, property rental, real estate and
aircraft leases, ground operations facilitation payments, flight operations and air traffic
operations, and general and administrative marketing and sales, recorded USD 2,2295.9
million at the end of the 2014 fiscal period.
USD $2,295.9
million*
2014
Operational
Costs
* The Operational Cost heading presented in the 2013 report excluded fuel costs. The 2014 report excluded fuel costs as
well as employee salary costs and taxes; therefore it is not possible to compare the Operational Costs from the two
periods.
The total amount of Avianca Holdings S.A. direct hire employee and indirectly contracted
employee salaries and benefits for the 2014 period was USD 725.7 million, which
represented an increase of 7.53%.
Salaries and Company Benefits
(in USD million)
$1,000.00
$800.00
$725.79
$674.95
$600.00
$400.00
$200.00
$-
Employee Salaries and Social Benefits (EVD)
2014
2013
In 2014, expenses due to interests were USD 133.9 million, and the dividends paid by the
Holding Company were USD 38.9 million. These headings represent payments that have
been posted to funding providers.
Payments made to the government amounted to USD 90.3 million, which included all
local taxes, municipal taxes, sales tax, and current income tax2. The total amount invested
in the community was USD 25,ooo.
2
The differed tax is not considered when calculating the income tax; that is why the result is different from
the headings presented to the shareholders as net tax and final net profit.
Economic Value Withheld
The economic value withheld for the 2014 period was USD 95.7 million and this report
does not include differed tax or foreign exchange rate differences.
The Organization’s net income in 2014 was USD 128.4 million, as a result of Avianca
Holdings S.A. continuity and strength in the different markets where its companies
operate.
Total EVW 2014
• USD $95.7millon
The Holding Company Airlines Improve Their Market
Positioning
As a result of service positioning in strategic markets and adjustments in seating capacity
and an increase in fleet aircraft, the airlines recorded the transportation of 26,230,019
passengers from January to December 2014. This amounted to an increase of 6.5% as
compared to the same period in 2013 with 24,625,062 passengers transported. ASK
seating capacity amounted to 41,052 million, which represents an increase of 5.9%
compared to 2013, with an average Load Factor of 79.4%.
The airlines’ CASK ex fuel3 expenses increased by 1.9% including expenses generated
from implementing the operational growth strategy and the change of fleet aircraft. Also,
RASK4 recorded an increase of 1.8%.
International Markets
In 2014 the Holding Company airlines transported 10,601,255 passengers on their international routes,
recording an increase of 2.6% as compared to the 10,332,760 passengers transported in 2013.
Domestic markets (Colombia, Peru, and Ecuador)
In 2014 the total number of passengers transported on routes inside Colombia, Peru, and Ecuador
amounted to 15,628,764 passengers, with an increase of 9.4% as compared to the 14,292,302 passengers
transported from January to December 2013.
3
4
Cost Available Seat per Kilometer - excluding fuel
Revenue Available Seat per Kilometer
Fleet Renewal
In 2014 the Holding Company airlines continued their fleet modernization strategy. In the 2014 period, 30
aircraft were incorporated: four Boeing 787-8 Dreamliner aircraft, two Airbus A330-200 aircraft, six Airbus
A321 aircraft, two Airbus A320 aircraft, six Airbus A319 aircraft and ten ATR 72-600 aircraft. Including the
newly incorporated aircraft, the operating fleet is now comprised of the following aircraft:
Operating Passenger Fleet at December 31, 2014
5
Aircraft
TACA
AVIANCA
AEROGAL
CESSNA
9
ATR 42
7
8
ATR 72
6
Embraer 190
12
Airbus A318
10
6
Airbus A319
17
11
2
Airbus A320
37
19
6
Airbus A321
3
10
Airbus A330
1
Boeing 767-300
1
Boeing 787
4
TOTAL
169
Destinations, Route Network and Alliances
During 2014, aimed at offering more connection options and coverage, the Organization increased the
Holding Company airlines’ seating offer on international routes, adding Bogotá-London flights and PereiraCartagena-New York flights. Also, important adjustments were made to the domestic flight offer in the
Colombian, Peruvian and Ecuadorian markets, driving the commercial and touristic dynamics of each
country and of the region with the new Bogotá-Villavicencio route in Colombia and Lima-Iquitos in Peru.
New Domestic Market Services
Colombia
Bogotá – Villavicencio
14 Frequencies
Peru
Lima – Iquitos
7 Frequencies
International routes (in each case, indicated segment and return)
More International Market Frequencies
5
Aircraft described under TACA may be operated by TACA International Airlines S.A., Líneas Aéreas Costarricenses
S.A. (LACSA), TransAmerican Airlines S.A. (formerly TACA Perú), Servicios Aéreos Nacionales S.A. (SANSA), Aerotaxis
La Costeña S.A., Isleña de Inversiones C.A. de C.V. (ISLEÑA) or Aviateca S.A.
Route
Bogotá, Colombia - Santiago, Chile
Bogotá, Colombia - Guatemala City, Guatemala
Bogotá, Colombia - San Juan, Puerto Rico
Bogotá, Colombia - Habana, Cuba
Bogotá, Colombia - Cancún, Mexico
Barcelona, Spain - Bogotá, Colombia
Bogotá, Colombia - Lima, Peru
Lima, Peru - Cali, Colombia
Guatemala City, Guatemala - San José, Costa Rica
San José, Costa Rica – Panama City, Panama
New International Route Services
Route
Bogotá, Colombia - London, UK
Pereira, Colombia - Cartagena, Colombia - New York (JFK), USA
Frequencies
7
3
2
1
7
3
7
1
7
17
Frequencies
4
3
Connection Hubs
In 2014, the Organization continued consolidating the three passenger airline connection hubs: Bogotá,
Colombia; San Salvador, El Salvador; and Lima, Peru. Improved itineraries and connection times between
routes operated by different airlines resulted in better seat occupancy and an optimized flight experience
for users on routes with different segments throughout the Americas and to Europe.
Bogotá, Colombia
Operations through the Bogotá Connection Hub amounted to 3,188 weekly departures to 23 cities in
Colombia, 5 cities in North America, 7 cities in South America, 10 cities in Central America, Mexico and the
Caribbean, and 3 cities in Europe, connecting hundreds of domestic and international travelers with
different destinations in these regions every day.
San Salvador, El Salvador
Through the San Salvador Hub, the Holding Company airlines operated more than 650 weekly departures
from and to 11 destinations in North America, 6 destinations in South America, and 12 destinations in
Central America, Mexico and the Caribbean.
Lima, Peru
In the Hub located in the capital of Peru, the Holding Company airlines operated 559 weekly departures to
15 cities in South America, 5 cities in Central America, Mexico and the Caribbean, 1 city in North America,
and 9 domestic destinations.
Codeshare and Interline Agreements6
In 2014 the Holding Company airlines continued offering codeshare operation services with ten
international airlines, thus achieving coverage in Latin American countries and in others beyond the
continent. The greatest demand under codeshare agreements was for connections to Spain, with Iberia; to
Mexico, with Aeroméxico; to other countries in South America, with Satena, Sky Airlines and OceanAir
(Avianca in Brazil); and to Europe, with Lufthansa and Turkish Airlines.
6
Information taken from the Avianca S.A. Management Report
Besides the above agreements, the Holding Company has more than 100 current interline
commercialization agreements with other airlines on five continents plus an intermodal agreement with the
railway company Renfe in Spain. Also, frequent flyers benefited from frequent flyer program reciprocity
agreements with 27 Star Alliance member airlines, including United Airlines, Air Canada, Singapore Airlines
and Lufthansa, among others, and frequent flyer program benefit exchange agreements with Iberia and
Aeroméxico.
Advances in Process Homologation
AeroGal
In order to offer better, more convenient response times, thus optimizing the time that clients spend at all
of the contact points and bettering their experience, the airline developed the Business Transformation
Project (ETP, its acronym in Spanish), which enabled standardizing the following processes: ticket
inventory, issuance, and sales; check-in; boarding; baggage handling; operational issues; and revenue
optimization. Furthermore, one sole technological platform was adopted, procedures for entering Star
Alliance were aligned, and changes in the image and in customer service were implemented using the
trademark Avianca Ecuador.
During 2014 the airline also made important achievements on other action fronts:
-
International Operations. During the second half of 2014 international operations to Panama, Aruba,
Viru Viru (Bolivia), and Curacao were added to the service portfolio, which led to increased revenues
and a broader route network supply.
-
Transfer to the Nuevo Aeropuerto Internacional de Quito (NAIQ) (New Quito International Airport).
The different company areas worked jointly to recover optimum On Time Performance percentages as
well as optimum service during the NAIQ operation. The action plans carried out throughout the year
allowed gradual improvement of the arrival time indicator and of the itinerary compliance indicator
during this move that resulted in better customer service.
-
Ground Operations. In recent years efforts have been made to standardize ramp processes. The end of
2014 boasted homologated training, aircraft cleaning procedures, baggage claim, and service
provision, among others. In addition, projects, such as the supply of drinking water, assistance to
flights operated by TACA International, TACA Perú, and Star Alliance member airlines were carried out;
they represented significant savings for Avianca Holding S.A.
Avianca Holdings’ Commitment to Safety (G4 – PR1)
The operations of the Avianca Holdings companies are based on Safety, a fundamental value in the air
transportation industry. Following that principle, the companies work pursuant to the guidelines set forth in
the Operational Safety Management System that in turn is governed by regulatory demands and directives
set forth by the International Civil Aviation Organization (ICAO).
In compliance with the Operational Safety Management System, decision making processes related to
operations design, execution, and improvement have been optimized. Also, the culture of operational
safety has been reinforced thanks to the creation and implementation of an integral safety policy, as well as
the dissemination of the personnel´s operational safety duties and responsibilities. Indeed, the level of the
employee´s intervention in said system is explained in detail based on his or her role in the hierarchical
structure of the organization, thus enabling effective operational risk management and continuous
improvement along with operational growth.
Some of the achievements made using this system include:
-
-
-
-
-
-
Operational Safety Management System Documentation. In 2014, the Operational Safety
Management System manuals and corresponding procedures were updated, in order to ensure ever
better operational risk management –the identification of hazards and the treatment of risks and their
potential consequences-. In addition, the company obtained ISO 9001 certification for the Operational
Safety Management System.
Operational Safety Report Program. In 2014, the number of safety reports increased 24.5% as
compared to the year before, reaching a record number of 6,400 events, out of which 89% were
classified in the category of acceptable, tolerable risk; that figure shows the important progress made
in the culture of prevention.
Operational Risk Analysis. After process implementation, diverse risk analyses were made in key
projects as well as initiatives aimed at identifying and mitigating potential hazards in the operations
before said projects were implemented; that was done when the Boeing 787-8 fleet was incorporated
as well as with the decision to use regulated temperature containers, among others.
Operational Safety Inspections. The company continued inspections at the airports where the
subsidiary airlines currently operate, aimed at identifying any condition that is a risk to operations and
managing it with the aeronautics authorities, in order to drive the adoption of risk management
measures.
Job Performance Evaluation and Operational Risk Management Monitoring. With the
implementation of the Operational Safety control board, decision making processes regarding proper
human resource assignment to ensure safe operations have been reinforced. Also, the level of top
management empowerment regarding Operational Safety management has increased, with an
evident evolution that has permitted effective monitoring to verify meeting the Avianca Holdings´
safety objectives.
Promotion of Operational Safety. In addition to giving initial and recurring Operational Safety
training, virtual training, with access for all of the subsidiaries’ employees has been developed. Also,
communications channels aimed at different levels of the Avianca Holdings companies were
established, resulting in increased awareness of the need to proactively identify operational risks and
keep the culture of safety in mind while performing duties. Among the safety promotion media, it is
worth highlighting the Safety Committee that enables an effective two-way communication flow
between the line personnel and top management.
Cargo Transportation and Courier Service Airline Line of
Investment Results
Avianca Cargo’s cargo operation, along with the national cargo transportation service in Colombia for
express courier service dispatches, transportation of packages and merchandise, afforded by the business
unit Deprisa – ascribed under Avianca S.A.- consolidate another one of the organization’s lines of
investment; this one represents 11% of Avianca Holdings’ consolidated revenues.
Cargo Transportation
Avianca Cargo, the brand under which the Avianca Holdings cargo business line operates, has the mission
of mobilizing goods and merchandise, using cargo planes operated by Tampa Cargo S.A.S. and/or using the
available capacity on passenger transportation flights. Some of the highlights of the 2014 achievements
were:
-
7
7
Capacity and Fleet. In 2014 Avianca Cargo recorded a 17% growth in ATK capacity as compared
to 2013. It was mainly due to a 25% increase in the cargo plane fleet, propitiated by more Airbus
Available Metric Ton per Kilometer
A330F aircraft operations than in 2013 when the mixed fleet (Airbus A330F, Boeing B767-300, and
B767-200 aircraft) was still in operation. At 2014 closing, a fleet of four A330F and of one B767-300
was operating. Likewise, the capacity for cargo on passenger planes also recorded an increase, 8%,
mainly driven by the addition of the wide-body aircraft routes. The fleet of A330-200F aircraft,
specially designed for the transportation of perishable goods and with a capacity of up to 68 metric
tons, allows simultaneously transporting goods of various natures, thanks to the system of
temperature control by area in those aircraft.
-
Cargo Volumes. The cargo volumes in RTK transported by the cargo business recorded a growth
of 25%, mainly concentrated on the following routes: Bogotá-Miami, Medellín-Miami, LimaMiami, and Miami–Brazil.
-
Service Portfolio. In 2014 the Special Products portfolio strengthened thanks to the expansion of
the network for “valuable cargo” transportation, after the certification and qualification of the
London, Tegucigalpa, La Paz and Santa Cruz de la Sierra stations. This product was introduced on
the Peruvian domestic market, enabling the transportation of valuables among the cities of Lima,
Cuzco, Arequipa, Chiclayo, Trujillo, Piura, and Juliaca.
-
Infrastructure
o Bogotá Cold Store Floor. In 2014 the Bogotá cold store floor started being changed; it
was updated with a ball transfer system floor that gives better operating efficiency in
terms of cargo mobilization and storage and reduces the work accident rate in the area by
100% as compared to the previous system. In January 2015 the project was completed;
the total investment was USD 765,000.
o Edificio 708 (Building 708). The Bogotá warehouse installed capacity increased 24% by
renting additional space, which enables proper handling of the present cargo volume. This
space now allows attending up to three aircraft simultaneously. The annual cost is USD
700,000.
o Cooling Tower. In August the Avianca Cargo cooling tower in Miami was changed; the
work cost USD 130,000. The investment represented the efficient guarantee of the cold
chain process.
o Warehouses in North America. The contracts with warehouse service providers in North
America were unified, representing an annual savings of USD 280,000.
8
At December 31, 2014 the cargo fleet comprised a total of nine aircraft, out of which six are being operated
and three are being subleased, as is shown below.
Total Cargo Fleet
Aircraft
Airbus A330-200F
Airbus A330-200F
Boeing 767-300F
Boeing 767-200F
TOTAL
Airline
Tampa Cargo
Avianca
Tampa Cargo
Tampa Cargo
Owned/under
Financial Lease
5
1
6
Operating Lease
Total
1
2
3
5
1
1
2
9
At the end of the period, Avianca Cargo had an operating fleet of four Airbus
Boeing 767-300F aircraft. And one Airbus A330-200F aircraft was grounded.
8
Revenue Metric Ton per Kilometer
A330-200F and one
Deprisa Business Unit9
In 2014 Deprisa, the Colombian domestic and international market transportation and logistics solutions
unit, advanced significantly in its growth and expansion strategy. In compliance with its business plan, it
created and implemented significant projects in the package delivery market, establishing new customer
service options. In addition, it was able to materialize competitive sales by implementing its new IT system
and streamlining its different logistics centers in Colombia and in the United States.
International Market
The international courier service network was consolidated with the strengthening of Avianca Express. It
now boasts a network with more than 190 sales points in the United States and 42 distributed among
Spain, Canada, Panama, Costa Rica, Ecuador, Aruba, and England. Furthermore, the products Premium
Priority and Next Day were launched in 2014; they offer faster delivery times.
Products
Deprisa’s product portfolio has broadened, now offering a new option for customers through Deprisa
Mercancías. This product was designed to respond to corporate customer demands for sending packages of
up to 200 kg. by land and offers a new payment alternative, called Deprisa Contra-entrega (COD payment).
Infrastructure
Structural changes were made in 2014 on some Colombian bases, resulting in better locations, larger
facilities, and greater security. The remodeled stations represent around 1,750 m2, a 58% enlargement at
the Sincelejo, Neiva, Bucaramanga, Siberia, Villavicencio, and Medellín stations. The facilities at the
airports in Riohacha, Leticia, Villavicencio, and Montería increased around 237 m2, equal to a 900%
enlargement of warehouse and customer service areas.
Service and Communication
Wishing to offer business clients preferential treatment, Deprisa developed a customer service model for its
98 high-value business clients. Some of the model benefits include special waiting times for pick-up and
distribution, personalized attention when managing their dispatches, and assessment and accompaniment
in packaging and safety processes, among others.
Quality Certifications
Given its rigorous administrative, technical, operational, and service procedures, Deprisa was able to keep
its certifications in:
-
The IATA World Air Safety Registry, the IATA Operational Safety Audit, and the IATA Safety Audit for
Ground Operations (ISAGO)
ISO 9001 Quality Management System
ISO 28000 Safety Management System.
Results. Thanks to the above achievements and initiatives, Deprisa recorded a 7.9% growth in sales and a
24% growth in business profitability. Also, Deprisa kept its leadership in the Colombian domestic cargo air
transportation market, recording a 38.2% share in October and a growth of 15.9% in metric tons
transported.
(Accrued Share, January-October 2014. Source: Colombian Civil Aeronautics Unit).
9
Information taken from the Avianca S.A. Annual Report
Results for Other Lines of Business
LifeMiles Corp.
The subsidiary in charge of the frequent flyer program for the Avianca Holdings S.A. passenger carriers is
LifeMiles Corp. It is in the process of consolidating the independent handling of the reward programs,
including, among them, the frequent flyer program in charge of commercializing the value of the miles
granted to the reward program.
During 2014 efforts were made to improve the program, adding new mileage accrual and redemption
options to benefit the members, thanks to a consolidated network of commercial allies. All of the above
aims at optimizing frequent flyer services. The main activities carried out during this period are listed below.
-
Enhanced Accrual and Redemption Network
In order to offer more benefits to its members, in 2014 LifeMiles implemented new options, such as:
 De Compras con LifeMiles (Shopping using LifeMiles). An alliance with retail partners regarding
LifeMiles accrual or redemption when making purchases at the sales points of over 200 stores
in Colombia. 2015 expects to see this benefit extended to Central America.
 Catálogo de Premios LifeMiles (LifeMiles Reward Catalog). In December 2014 a new catalog was
launched in Colombia in alliance with Linio. It now comprises 22,000 products, with a
projection for gradual growth. 2015 expects to see it extended to Peru, Ecuador, and Central
America.
 Renta-autos LifeMiles (LifeMiles Rent-a-Car). Thanks to an alliance with Connexions, it is now
possible to accrue and redeem LifeMiles when renting cars in over 180 countries.
 LifeMiles Things to Do. The partnership with Connexions also allows accruing and redeeming
LifeMiles on over 9,000 tours and in other activities in over 300 cities around the world.
 LifeMiles Mobile App. The mobile application for Android smart phones launched in 2014
allows members to redeem airline tickets with Avianca from their devices, among other
functionalities. In 2015 the iOS version will be launched for Apple users, as will new
functionalities to complement De Compras con LifeMiles (Shopping using LifeMiles).
 New Airline Partners. New agreements for frequent flyers were entered into with Aeroméxico
and with Air India, thus allowing members to accrue and redeem LifeMiles when flying with
said airlines.
 On-board Duty Free. Now members can accrue LifeMiles when they make on-board Duty Free
purchases on Avianca flights.
 In addition, new alliances were made with Hoteles IHG and AccorHotels, as well as with
Traveling Connect.
-
New Benefits. In April 2014 the CENIT acknowledgement was created. It permanently grants LifeMiles
Élite benefits to travelers over 60 years of age who have been continuously loyal to Servicio Avianca
and who have accrued over one million miles in trips using Avianca. This new benefit was granted to 64
members in 2014. Every year the frequent flyers meeting the requirements established for obtaining
this lifetime benefit will increase.
Avianca Tours10
Seeking to offer a commercially more robust tourist product, in 2014 two important actions were carried
out: in terms of supply, the volume of plans placed on the market increased, with the influence of Viajes
Éxito, a channel with outstanding expertise in selling vacation packages. In parallel, there was a migration
of the Avianca Tours call center in the customer service area, in order to provide the end customers as well
as the travel agencies better customer service.
10
Information taken from the Avianca S.A. Annual Report
In 2014, the Sixth International Golf Tournament took place with excellent results, as Avianca (as a brand)
and Avianca Tours placed in a specialized segment with significant commercial potential, thus achieving a
growth in value of 13% as compared to 2013 and revenues of over USD 500,000.
For this fiscal period, Avianca Tours revenues rose to USD54.7 million, representing a growth of 5.6% in
revenues and a growth of 12% in passengers, as compared to the previous year.
Avianca Services11
In 2014, Avianca Services, the business unit specialized in industrial aeronautics service provision and
commercialization, made important achievements:
-
-
-
-
-
Accreditation of Technical Processes. In cooperation with the Avianca S.A. Technical Instruction
Center team, the Colombian Civil Aeronautics Authority granted Avianca Services the technical
airplane line program certification. This certification enables it to offer persons aspiring to work as
airline aviation technicians access to a high-quality study program that covers the actual sector needs
in that field. Likewise, it will enable this unit to continue expanding its educational training programs.
Simulator Services. 2014 saw the initial commercialization of the ATR72-600 flight simulator, adding
the companies Aeromar de México in Mexico, Caribbean Airlines in Trinidad and Tobago, and CAE
Flight Training Center in Chile to this Business Unit’s list of customers in this segment.
Educational Training. The On-Board Service Attendant and Airport Service Attendants program
exceeded the number of 160 students seen last year, boasting 284 persons in training, thus recording a
78% growth. The year 2015 will see the first graduation of the students in this program.
Line Maintenance. Within the internationalization plan for these services, United Airlines became one
of Taca Perú’s customers in Lima. In Colombia Vensecar Internacional (from Venezuela) and Airpanama
(PARSA S.A.) joined the customer list for these services. Likewise, airport service and line maintenance
service provision was broadened to cover the new Insel Air operations in Barranquilla, the second
Bogotá-Mexico City frequency of Interjet, and the increased JetBlue operations in Bogotá and in
Cartagena.
Services at Airports. In 2014, the contract with Satena and Air Transat (charter flights) continued and
the charter flight company Italiana Neos joined the customer list.
Overhaul Services. Support continued for the Colombian Air Force and for the Venezuelan airline
Aserca Airlines.
In 2015, Avianca Services intends to expand its commercialization of airport services and line maintenance
services in Central America and in South America, to achieve active overhaul sales and service provision by
opening an additional production line in Bogotá. As regards training, the objective is to start the Airplane
Line Technician program, to open evening training sessions for the On-Board Service Attendant and Airport
Service Attendants program; and to consolidate the commercialization of the ATR72-600 flight simulator.
11
Information taken from the Avianca S.A. Annual Report
6. Avianca Holdings’ Commitment to
Its Strategic Partners
In its search for new synergies, to build alliances and renew evaluation and development
methodologies, Avianca Holdings S.A. continued strengthening relations of trust with its
providers, strategic partners with whom it made negotiations in the amount of USD
$1,523,72312.
Providers of non-technical services to the Avianca Holdings companies represented a
group of 3,167 companies and organizations during the second half of 2014. Although the
companies integrated under the Holding do not have a defined policy for the use of local
providers, 58.6% of non-technical purchases were negotiated with companies located in
the HUBS (Colombia, El Salvador and Peru) where the Avianca Holdings operating
companies conduct their operations (G4- EC9)
Provider Evaluation and Development Program
This program covers the relation that the Avianca Holdings operating companies have
with their strategic partners, including selection, evaluation, monitoring, auditing, and
accompanying them throughout the supply chain.
In 2014 Avianca Holdings opened a space for good practice exchange initiatives, which
contributed new focuses and ideas for the program projects:
1. Networking. For this activity, Avianca S.A. was the host in association with the
Bogotá Chamber of Commerce. It generated a network with 13 other large
companies in Colombia for provider evaluation; some of the best experiences
regarding the topic were shared and this space promoted a community for the
exchange of knowledge, contacts and experiences.
2. Collaborative networking. Provider development being the common
denominator, Isagen summoned several large Colombian companies for the
purpose of sharing efforts and lessons learned on the topic. Avianca Holdings S.A.
participated in the meetings held in 2014, during which the Avianca Holdings
companies started developing various work fronts, to take advantage of the
benefits offered by the Ministry of Industry and Commerce, aimed at driving
12
The amount of the purchases was only available for the second half of 2014 because Avianca Holdings
S.A. changed its Enterprise Resource Planning ERP, which is a set of information systems that enable
integrating certain company operations, especially those that regard production, logistics, inventories,
dispatches, and accounting. In 2014 Avianca Holdings S.A. migrated its operations to Oracle ERP Solutions;
that is why, some of the data published in this chapter only includes data from the second semester of that
year.
Provider development. This initiative also generated an improved methodology
and scoring system for the assessment model in place; the changes will be
reflected in 2015.
3. Provider Development Pilot Program in alliance with the Bogotá Chamber of
Commerce (CCB is the Colombian acronym). Making a diagnosis of their
company, led by the CCB, participating providers identify gaps and opportunities
for improvement in their development process and enjoy the necessary
accompaniment to be able to successfully work on the gaps identified, enhance
their capabilities, and validate their business conditions as well as their potential
for internationalization, all for free. The 10 companies that participated were
selected by the Avianca Holdings S.A. Administration and Purchasing Directorate
based on their performance and the need for support as identified in the
evaluations that had been made.
Provider Evaluation and Acknowledgements to Providers
Currently the Organization highlights the members of its supply chain with the greatest
impact on the processes of the Avianca Holdings operating companies and those that
obtain the highest scores according to the evaluation criteria that include:
-
-
-
Business Management Indicators. These indicators serve to verify compliance with
specific requirements, such as compliance with labor matters, among them:
payroll payments, training, occupational health and occupational safety.
Business Management Auditing. This covers compliance with the provisions in the
“Master Requirements Form” and in the corresponding contract. In 2014 a total of
19 Business Management Audits were conducted.
Technical Indicators. These indicators evaluate aspects pertinent to the operations
for which the provider is contracted.
Technical and/or Quality Control Audits. The Management area carries out this
activity, verifying compliance with the technical specifications that provider must
meet to provide an excellent service.
As a result of such evaluations, in 2014 acknowledgements were made to 38 providers
during a ceremony with their colleagues, representatives from the user areas, and
representatives from the Organization´s Steering Committee.
2M SERVICE S.A. DE C.V.
AAACESA ALMACENES FISCALIZADOS S.A.
AERO DISPATCH SERVICES LTD.
AERODESPACHOS S.A.
AGENCIA WARREN S.A. DE C.V
CARGO FORCE INC.
CASA PHILLIPS
COOPAVA
CRISTIAN CABRALES Y CIA S.A.S
CURAҪAO GROUND HANDLING SERVICES N.V.
GATE GOURMET BOG
GATE GOURMET MIA
GIRAG PANAMA S.A.
GODDARD CATERING GROUP EL SALVADOR S.A.
IG SERVICES S.A.S.
INTEREXPRESSO S.A.
INTERNATIONAL MEAL COMPANY
INVERSIONES O&E S.A.
IVAN GONZÁLEZ S.A.S.
L.A.S.A.
LYS SERVICE CAR S.A.C
MAGIC TOURS MT S.A.S
MONVI S.A.S.
PERISHAIRPORT CIA. LTDA.
REPRESENTACIONES AVIA S.A.S
RIAÑO MORENO LA BELLEZA & CIA. S. EN C.A.
SAYT S.A.S
SERDAN S.A.
SIATO LTDA.
SPE S.A.
SWISSPORT BRAZIL
SWISSPORT FLL
SWISSPORT MIA
SWISSPORT NYC
TALMA SERVICIOS AEROPORTUARIOS S.A.
TERMINALES SANTA MARIA S.A.
TRI FIT S.A.
TVO COMUNICACIONES LTDA.
Providers obtaining a score below 65% undergo a follow-up process during which
opportunities for improvement are identified, assessment meetings are held, and specific
objective action plans are developed, using physical meetings, teleconferences,
deliverables, and assignments. 30 follow-ups were done on 24 providers in 2014.
Avianca Holding’s companies also continued evaluating provider performance regarding
matters of Human Rights, which contributes to better integrated operations. A total of
534 Type B and Type C providers and 81 Type A providers were
HR11)
2012
2013
Total Type A Providers
74
83
Providers Analyzed
100%
100%
Contracts Rejected
1.39%
0%
analyzed in 2014. (G42014
81
100%
0%
User areas also have a space for venting their dissatisfaction with provider services,
accompanied by the Provider Administration and Development office that does the
corresponding follow-up and verifies service improvement. There were 18 complaints in
2014, which were worked out, with a 92.7% average of user area satisfaction.
7. Avianca Holdings’ Commitment to
the Environment
Safety, Health and the Environment (SHE)
The mission of the Safety, Health and the Environment area is to encourage commitment
and leadership regarding Industrial Safety, Occupational Health, and Environmental Care,
therefore contributing to making the Avianca Holdings S.A. subsidiaries the best places in
which to work.
Focused on fulfilling said mission, the Avianca Holdings companies work under the
guidelines of the ISO 14,001 Environmental Management System, IOSA13, and ISAGO14
rules and regulations specific to the Aviation Industry and national and international laws
and regulations.
The Environmental Management action fronts are described below.
Environmental Management. Set of strategies aimed at preventing
environmental pollution through the rational use of natural resources and the
implementation of cleaner production practices, thus enabling compliance with
applicable laws and regulations and other environmental commitments.













13
Integral work with the Social Responsibility area
Project accompaniment
Environmental inspections
Handling environmental contingencies
Attention to the requirements of authorities and of interested parties
Efficient use of water and energy
Waste management
High impact provider follow-up
Monitoring atmospheric emission indicators
Hazardous and conventional waste management
Promotion of cleaner production projects
Improving environmental care competencies
Plans for handling environmental contingencies
IATA Operational Safety Audit (IOSA) is an internationally renowned and accepted evaluation system,
designed to evaluate air transportation company operations management and control systems.
14
IATA Safety Audit for Ground Operations is a tool for the control and improvement of ground operations
safety; it also helps decrease airline costs by drastically reducing the number of accidents and injuries.
Environmental Management Standardization
In order to standardize environmental management, the Avianca Holdings companies
used diagnostics tools to evaluate compliance with applicable environmental laws and
regulations and the requirements of ISO 14,001, OHSAS 18,001, and ISAGO-IOSA
standards at all stations.
They also defined three phases for standardization at a corporate level, giving priority to
closing legal gaps. The three phases are:
Phase I Applicable
Legislation (2011-2014)
Diagnosis and closure
of
environmental
regulation gaps in each
country
Phase II International
Standards (2011-2015)
Diagnosis and closure of
gaps regarding standards
ISO 14001 – 2004
ISAGO: Certifications
Phase III Maintenance and
Constant Improvement
(2015 hereinafter)
Constant improvement
of the Environmental
Management system
IOSA: Certifications
During Phase I, the Organization had external cooperation for carrying out environmental
diagnostics in the following stations:
Data in COP at November 2013. Dx Executed. Dx. Pending
The diagnostics enabled consolidating legal environmental requirements, evaluating their
compliance at each station, and defining action plans for closing gaps.
Acknowledgements and Certifications
In 2014 national and international audits were conducted to evaluate all environmental
management aspects at a physical or documented level. The SHE area participated in the
following audits:
SYSTEM


PERU
SISO and GA internal quality
audit
External quality audit under
standard ISO 9001:2008 for
certifying SISO and GA
processes

ECUADOR
Complete environment, safety
and
occupational
health
technical evaluation by the
Airport
Operator,
which
receved an Excellent score




ISO 14.001:2004 Re-certification
Smart Voyager
SART 333
IOSA for Aerogal
COLOMBIA


IOSA for Avianca
RUC requirement evaluation
for contracting with Cerrejón.
OHSAS 18001 compliance
diagnosis with a result of 68%
CAM


IOSA for Taca International
FAA audits
Goals
At the end of 2012 the Holding Company subsidiaries defined the strategic macro goals
described below, regarding Safety, Health and the Environment for 2013-2015.
Environmental Policy
Through their Environmental Policy, the Holding Company subsidiaries sketch guidelines,
establish objectives and set goals within the Environmental Management System (EMS).
With the following commitments, the Holding Company asserts its interest in the
protection and preservation of the environment and the rational use of natural resources.
Decrease fossil fuel consumption
Reduce hazandous waste
Implement pollution prevention mechanisms in all of its activities
Diminish greenhouse gas emissions and noise
Comply with applicable environmental laws and regulations and with other environmental
commitments
Constantly improve its environmental performance
Promote environmental commitment to employees, providers, and contractors
The Holding Company subsidiaries can count on the Corporate Safety, Health and
Environmental (SHE) Manager’s Office to disseminate the general guidelines and
standardize the most appropriate SHE practices in all operations areas.
Environmental Formation, Training, and Sensitization
In 2014, the Avianca Holdings’ companies gave training on important environmental
aspects.
As compared to 2013, there were 9,269 more employees trained on environmental topics,
such as proper waste handling, the efficient use of natural resources, and environmental
contingencies. The increase in trained employees was related to the startup of the
Corporate Orientation Environmental Management and Handling of Environmental
Contingencies Module for mid-management level employees using the e-learning
formation tool. This tool enables fast employee access to the contents, thus facilitating
easy learning.
To complement the training sessions, there were sensitization activities and practical
workshops that contributed to building a culture of respect and environmental
protection.
2014 TRAINING
Environmental Training
Module
Number of
employees
trained
10,789
Environmental Management
Orientation. Avancemos
(Let’s Go Ahead) ( e-Learning platform)
7,107
Handling
Environmental Contingencies (for mid1,520
management level employees). Avancemos
Mantenimiento
(Let’s
Go Ahead with Maintenance) (
2013
2014
e-Learning platform )
705
Waste Management (Practical workshop)
770
Handling Environmental Contingencies (Practical
workshop)
652
Environmental Management System
666
Orientation for Contractors
889
Total
10,789
Initiatives
The Holding Company initiatives to mitigate the environmental impact generated by
their operations, implemented by its subsidiaries, focused on cleaner production and
concentrated mainly on:
Biodegradable Napkins:
29,379,200 biodegradable
napkins** were used for
Avianca onboard services
and in VIP lounges
PLA plastic cups:
10,903,800 PLA*
plastic cups were used
for Avianca onboard
services and in VIP
lounges in 2014
* Polylactic Acid is a polymer, made up of lactic acid particles, used to make biodegradable containers. It easily dissolves in water and carbon oxide in approximately 12 weeks.
** These napkins were made from renewable plant-derived natural resources (recycled fibers), which makes them biodegradable, thereby reducing the environmental impact
related to the life cycle and use of natural resources.
Solid Waste
Solid Waste Recycling
571.8 metric tons of
conventional solid waste
were recycled for future
use, aimed at reducing
the number of landfills
Fleet Renewal (G4 – EN27)
Avianca has the most modern fleet in the region. At the end of 2014 each aircraft in the
fleet aircraft had been manufactured 5.4 years before, on an average.
This year, 31 new aircraft have been incorporated into the Company fleet:






4 B787-8
6 A319
2 A320
6 A321
3 A330
10 ATR72
The Avianca Holdings’ companies
continued the fleet aircraft renewal,
simplification and streamlining process
by incorporating 31 aircraft with
environment friendly technology.
Fuel Saving Strategies
ENGINE AND AIRCRAFT WASHING
Washing the engines and the aircraft more often controls the layer of grease generated by regular use, which restricts the
entry of air into the combustion chamber, leading to increased engine temperatures and a less efficient combustion
process. Also, washing the aircraft improves its aerodynamic processes by eliminating resistance, which results in lower
fuel consumption.
IDLE REVERSE ON
LANDING
On long runways, landing
can be done without having
the engine expel air forward,
in order to slow down and
use its breaks. Using the
engines,
but
not
at
maximum power, the proper
speed is maintained for
entering the disembarkation
area. This reduces fuel
consumption and increases
the useful life of the
engines.
WATER REDUCTION
The amount of drinking
water
supplied
is
controlled according to
flight distance.
APU/GPU OPTIMIZATION
The Auxiliary Power Unit (APU)
is a third engine in charge of
providing the aircraft with
electricity, hydraulic pressure,
and air conditioning; it uses A1
jet fuel. The Ground Power Unit
(GPU) provides the aircraft with
electricity while it is at the
airport, using diesel fuel.
APU/GPU optimization consists
of reducing APU use at airports
where the GPU service is
available, as long as the GPU
usage costs are equal to or lower
than APU usage costs. Maximum
APU usage is established in the
APU usage policy, based on
airport temperature.
REDUCED FLAP TAKE-OFF
There are three (3) possible flap configurations for take-off. Flaps are part of the wings and, by changing positions, they
enable the aircraft to increase or reduce air resistance. When runway conditions allow, the flap configuration can be
adjusted, in order to optimize fuel consumption by reducing air resistance at take-off.
THRUST REDUCTION
ALTITUDE
Reducing engine power at an
altitude of 1,500 feet during
take-off minimizes the time
during which the aircraft flies
at full power, which reduces
fuel consumption and engine
wear and tear.
REDUCED FLAP LANDING
When runway conditions
allow, a configuration below
Full Flaps is used upon
landing, to reduce air
resistance and thus optimize
fuel consumption.
OVERFUELING
The actual amount of fuel
supplied to the aircraft is
monitored, aimed at avoiding
an excess of fuel over the
amount established in the
fueling order as it indicates the
amount of fuel required for the
scheduled flight segment and
any additional fuel pursuant to
applicable law.
SINGLE ENGINE TAXI
In airports where the boarding gate is far from the runway, single engine taxying is used. When the aircraft is leaving the
airport, this strategy is called Single Engine Taxi Out and when the aircraft is arriving at the airport, it is called Single
Engine Taxi In.
Fuel Consumption (G4-EN3)
In 2014, fuel consumption increased 5.10% as compared to the year before. Said increase
was related to the companies’ adding routes to their network and to increased
frequencies. Also, an increase in thermal value is directly proportionate to an increase in
fuel consumption.
In that same year, the seat capacity measured in Available Seats per Kilometer (ASK)
increased 5.9%, and passenger traffic capacity measured in Revenue Passengers per
Kilometer (RPK) increased 4.5%, ending the year with a consolidated seat occupancy
factor of 79.4%.
Annual Fuel Consumption (in gallons)
346,512,035 382,320,904 408,863,408
2011
2012
2013
429,703,000
2014
Annual Fuel Consumption (in Terajoules)
47,329
2011
52,220
2012
55,845
2013
58,692
2014
Fuel Consumption by Block Hour (G4-EN5)
Fuel consumption by block hour refers to measuring the total fuel consumption from
when the gate is closed at the station of origin to when the passenger door is opened at
the station of destination.
The following chart shows the variations of fuel consumption by block hour by fleet in
2014for each one of the Holding Company subsidiaries.
FUEL CONSUMPTION
IN GALLONS PER BLOCK HOUR AND BY TYPE OF AIRCRAFT
Variation
FLEET
AIRCRAFT
2012
2013
2104
2013 - 2014
in %
Airbus 318
597
609
607
-0.33
Airbus 319
692
723
691
-4.43
Airbus 320
698
698
679
-2.72
Avianca
Airbus 330
1,654 1,667
1,646
-1.26
ATR 72
0
157
160
1.91
FOKKER 50
146
145
146
0.69
Airbus 319
735
729
730
0.14
Airbus 320
799
790
780
-1.27
Taca
Airbus321
972
970
947
-2.37
Airbus 330
1,496 1,594
1,650
3.51
Embraer 90
611
622
626
0.64
ATR 42
133
128
Regional
Caravan
100
98
99
1.02
Airbus 319
618
612
622
1.63
Aerogal
Airbus 320
671
671
689
2.68
Airbus 330
0
1,611
1,564
-2.92
Boeing 7671,306 1,297
-0.33
Tampa
200
Boeing 7671,518 1,469
1,404
-4.43
300
Aircraft Fleet Emissions
According to studies conducted by the Intergovernmental Panel on Climate Change
(IPCC), out of the total amount of carbon dioxide (CO2) produced by man, the aviation
industry produces around 2%; plus, it is estimated that the worldwide demand for
passenger flights will have increased 5% per year from 1990 to 2015, whereas the total
consumption of aircraft fuel (passenger transportation, cargo, and military operations)
will have increased 3% per year. The above is mainly due thanks to improvements in
aircraft efficiency.
By investing in new technologies and in developing proper operational procedures, the
aviation industry has kept its gas emissions from growing proportionately to the
increasing number of passengers transported, an average 5% per year.
APPROX. GAS EMISSIONS GENERATED BY AIRCRAFT
ENGINES
NOx, CO,
Sox,VOCDM*,
particles and other
oligoele-ments.
1%
H2O
29%
CO2
70%
*Volatile Organic Compounds Different from Methane (VOCDM): These compounds are mainly comprised of hydrocarbons belonging
to some of the following chemical groups: alcohols, aldehydes, alkalines, aromatics, ketones, and halogen products. These substances
easily vaporize at room temperature, and many of them have no color or smell.
GEI EMISSIONS IN CO2 TONS (G4-EN15)
2012
2013
2014
1,498,503
1,410,814
1,369,152
1,291,468
2,220,445
2,121,311
1,923,000
1,634,694
Aerogal
Tampa
9,522
28,707
30,203
31,731
309,800
268,687
257,327
211,148
Taca
153,989
159,427
150,310
202,593
Avianca
2011
Regional
In 2014, the absolute value of CO2 emissions showed an increase of 4.85% as compared to
those of the previous year. Such increase was the result of the Holding Company’s
subsidiaries’ growing operational activities. The emissions were calculated using a JET A1
density of 3,0972 kg/gl and an emission factor of 3.15 CO2 ton/fuel ton.
CO2 Emissions by Ground Equipment at the Bogotá Station
In 2014, CO2 emissions at the Bogotá station were reduced by 3.58%, thanks to the some
of the combustion-powered equipment having been replaced by electrical equipment.
Approximately 40 pieces of electrical equipment have been incorporated into operations
in the past 5 years.
CO2 EMISSIONS BY EQUIPMENT/MAN HOUR (IN KG)
12.53
12.21
11.81
11.38
2011
2012
2013
2014
Noise
In accordance with its commitment to the aviation industry, the Holding Company
continues working toward reducing the impact generated by aircraft noise. In average,
new aircraft produce 50% less noise than aircraft built 10 years ago, according to
information furnished by Boeing and by Airbus; and it is calculated that new generation
aircraft noise emissions have been reduced 15% as compared to the previous generation.
Mandatory Noise Reduction
The United Nations intergovernmental body, International Civil Aviation Organization
(ICAO) introduced a new noise limit standard in 2006 called Chapter 4, aimed at
guaranteeing that new aircraft will be 10 decibels lower than those built under Chapter 3
specifications.
Said standard is part of a series of measures for optimizing the noise level of reaction
engines. ICAO calculates that the number of people exposed to air traffic noise was
reduced by 35% in the entire world from 1998 to 2004.
It is worth mentioning that all Avianca aircraft (A318/ A319/ A320/ A330/ ATR72/ Boeing
787) are STAGE 4 noise level certified. This categorization is issued by the aircraft
manufacturer.
Thus, Avianca has shown that it has state-of-the-art technology for air industry
operations, and that it is in compliance with noise reduction procedures at airports as
defined by the aeronautics authority. Furthermore, the single engine taxi out and single
engine taxi in, mainly aimed at saving fuel, also reduces the noise impact on the
population, as one engine is shut off.
Waste (G4-EN23)
The Avianca Holdings subsidiaries generate two types of waste: conventional waste and
hazardous waste. They manage waste using the Integral Waste Management Plan aimed
at preventing negative environmental impact.
Non-hazardous Waste
CONVENTIONAL WASTE
RECYCLED (IN TONS)
2013
432.87
2014
571.8
RECYCLED WASTE BY TYPE
OF MATERIAL (IN TONS)
382.7
69.9 74.8
36.4
8
In 2014 a total of 571.8 tons of ordinary waste were recycled; 32.1% more than the
previous year. This was made possible thanks to more coverage in the dissemination of
recycling strategies and of employee sensitization strategies regarding the importance of
environmental protection. For example, the art expo “Entre la conversión y la
metamorfosis” (“Between conversion and metamorphosis”) gathered 14 contemporary
artists who used cardboard, paper, plastic, metal, and wood to make their art pieces.
CONVENTIONAL WASTE RECYCLED
(IN TONS)
2013
2014
Variation as a
%
COLOMBIA
406
478
17.7
ECUADOR
8.5
16
88.2
EL
8.9
47.7
436.0
SALVADOR
SAN JOSÉ
0.67
3.6
437.3
GUATEMALA
8.8
13
47.7
LIMA
0
13.5
100.0
TOTAL
432.87
571.8
32.1
Hazardous Waste
The Avianca Holdings’ companies gave training and held conferences on the proper
handling of hazardous waste, during which practices for preventing possible impact on
natural resources and human health were disseminated.
The companies produced 253 metric tons of hazardous waste, surpassing the amount
produced in the previous year by 4.2%. The increase in hazardous waste was due to the
growth in operations and in aircraft maintenance. The different types of hazardous waste
were properly disposed of according to their characteristics.
HAZARDOUS WASTE
MANAGED (IN TONS)
2014
241.85
2013
232
TONS OF HAZARDOUS WASTE RECYCLED
BY TYPE OF MATERIAL
HAZARDOUS WASTE MANAGED
(IN TONS)
2013
2014
Variation as a
%
COLOMBIA
185
175.2
-5.3
ECUADOR
13.6
17.8
30.9
EL
20.4
10.45
-48.8
SALVADOR
SAN JOSÉ
2.8
23.6
742.9
GUATEMALA
5.7
5.9
3.5
LIMA
7.3
8.9
21.9
TOTAL
232
241.85
4.2
Water Consumption
The Holding Company’s water consumption was reduced by 5.9% thanks to the water
reduction actions implemented in activities with significant water consumption.
Said actions were implemented in:
1. Bogotá: administrative offices, air terminal, hangars and Helicol
2. Quito: AV control areas at the airport
3. San José: administrative areas
4. Guatemala: hangar and administrative areas
5. Lima: airport areas
6. El Salvador: administrative areas and hangar
In the cities of Bogotá, Quito, San José and El Salvador, water collection is handled by the
local waterworks company; also, in El Salvador and in Guatemala water is collected from
underground sources.
140,687
152,145
WATER CONSUMPTION (IN M3)
40,211
38,542
2013
3,210
Guatemala
2,940
1,177
San José
1,177
Quito
6,861
9,722
735
500
Bogotá
Lima
El Salvador
2014
Waste Water
While washing aircraft parts and components and ground
equipment, the Holding Company subsidiaries generate
waste water, which undergoes physical-chemical and
microbiological treatment, and proper disposal by
external companies that have permits as required by each
country’s environmental authorities. In 2014 a total of
3
67. 4 m of polluted water underwent treatment.
Environmental Expense and Investment
In 2014, the Holding Company subsidiaries made an environmental investment, besides
the purchase of new aircraft, amounting to USD 626,298, which represents an increase of
80% as compared to the previous year.
Regional
North America, Central America and the Caribbean
Corporate
South America
Colombia - Europe
Total
Investment
USD 20,150
USD 39,466
USD 36,149
USD 530,533
USD 626,298
8. Avianca Holdings’ Commitment to
Its Employees
To attract the best talent, procure a good work climate, and propose initiatives that
connect our employees to the corporate strategy are the key missions of the
Organization’s Human Resource Management area, thanks to which Avianca Holdings
can meet its business objectives and maximize the valuable support of its subsidiaries’
human resources.
In 2014 emphasis was made on the employees’ total development, through training,
wellbeing, health and safety, leadership, and evaluation processes, among others, for the
purpose of strengthening the passion and human warmth that characterize our
operations and the service of the Avianca Holding’s companies.
Passion and Human Warmth (G4-LA12)
A team of 20,485 professional employees enabled Avianca Holdings to meet its corporate
objectives during 2014. Thanks to its efforts and dedication, this team, 7% larger than last
year’s, reached important milestones in service, operating excellence, coverage, and
customer service, among others.
Distribution by Gender
12,912
12,031
11,363
7,573
7,096
6,912
Men
2012
2013
2014
Women
Distribution by Age Groups
51.10%
40.70%
49.70%
42.53%
2013
8.20%
18 to 30 years of age
30 to 50 years of age
2014
7.77%
over 50 years of age
Distribution by type of post
59%
61%
2013
15%
13%
10%
7%
Operating
6%
Technical
6%
12%
5%
Administrative
3%
Professional
Mid-management
3%
Directing
Employees by Gender and by Type of Post (G4-10)
2013
Type of Post
Operating
Technical
Administrative
Professional
Midmanagement
Directing
2014
Men
7,331
1,402
756
1,769
Women
4,504
99
384
1,145
Men
6,954
1,132
319
1,228
Women
4,514
45
579
1,078
1,303
733
1,473
761
356
235
346
217
2014
Employees by Type of Contract and Employment15 (G4-10)
2014
Indirectly
Contracted
Direct Hires
Type of
Contract
Working
Hours
Full-time
Indefinite
Part-time
Full-time
Fixed
Term
Part-time
Full-time
Bid
Part-time
Full-time
Fixed Bid
Part-time
Total
Men
Women
6,241
488
2,216
2,892
281
2,139
Men
2,923
114
8,945
5,312
3,037
Temporary
Women
Men
Women
265
37
231
124
625
3
930
311
1
667
1,486
108
1,594
Employees by Type of Employment and Region (G4-10)
Direct Hires
Central America
South America
North America
ColombiaEurope
Men
3,440
1,395
231
3,879
Women
1,690
901
152
2,569
Indirectly
Contracted
Men
Women
4
3,033
14
1,580
Temporary
Men
91
211
628
Women
86
265
4
312
Total
Men
3,531
1,606
235
7,540
Women
1,776
1,166
170
4,461
Turnover Index (G4-LA1)
In 2014 the largest number of new entries of personnel was seen in the Colombia –
Europe region. In the Central America, South America, and North America regions there
were negative turnover indexes because there was a greater number of removals than of
new entries; notwithstanding, in general terms, counting all of the regions, there was a
total of 249 new entries and of 234 removals, which represented a positive turnover
index.
15
As of the year 2014 contracts were classified into four categories different from the types seen in prior
years; that is why, there is no comparative table with the data for the years 2012 or 2013.
Central America
New Employees
Men
Women
3
4
1
4
1
0
5
8
18 to 30 years of age
30 to 50 years of age
Over 50 years of age
Total
Removed Employees
Men
Women
9
7
3
4
3
1
15
12
Employees at the
Beginning of the
Period
New Entries
Removals
Employees at the
End of the Period
Turnover Index
5,362
13
27
5,319
- 0.26%
North America
New Employees
Men
Women
0
0
0
0
0
0
0
0
18 to 30 years of age
30 to 50 years of age
Over 50 years of age
Total
Removed Employees
Men
Women
0
0
1
1
0
1
1
2
Employees at the
Beginning of the
Period
New Entries
Removals
Employees at the
End of the Period
Turnover Index
411
0
3
407
- 0.73%
South America
New Employees
Men
Women
2
6
2
0
0
0
4
6
18 to 30 years of age
30 to 50 years of age
Over 50 years of age
Total
Removed Employees
Men
Women
12
9
7
1
1
0
20
10
Employees at the
Beginning of the Period
New Entries
Removals
Employees at the End of
the Period
Turnover Index
2,798
10
30
2,769
- 0.71%
Colombia and Europe
New Employees
Men
Women
74
132
4
15
1
0
79
147
18 to 30 years of age
30 to 50 years of age
Over 50 years of age
Total
Removed Employees
Men
Women
56
68
26
16
6
2
88
86
Employees at the
Beginning of the
Period
New Entries
Removals
Employees at the
End of the Period
Turnover Index
10,072
226
174
10,151
- 0.51%
Remuneration
The job description is the basis for defining salary allocation, compensation, and
remuneration for the different posts. This process also takes into account the criteria of
performance results, problem solving, and skills, in order to keep a balance between
market values and the value that the Avianca Holdings companies allocate to each post.
The Hay Group method is used for this evaluation; it is based on a system of profiles and
scales:

The result of the evaluation analysis states the total number of points for the post and
its weight within the Organization.
 Using this result, the salary compensation is allocated for the post, ensuring that it is
established according to the principles of equity and competitiveness.
Every year the Avianca Holdings companies acquire applicable market salary scales for
each country or region and internal compensation studies are updated, in order to detect
any need for salary adjustment and to identify and compare salary allocations to the
market situation.
2014 Salary Adjustments
Country
Description

Colombia

The best paid post showed an increase of 1.94% as compared to an
average salary variation of 18.55% for the other posts.
Inflation adjustments ranging from 1.94% to 2.79% according to the
type of contract as well as movements stemming from specialization
plans were taken into consideration for determining those
percentages.

El Salvador


Peru


Ecuador

The best paid post showed an increase of 3% as compared to an
average salary variation of 3.75% for the other posts.
Inflation adjustments were taken into consideration for determining
those percentages.
The best paid post showed an increase of 5.2% as compared to an
average salary variation of 5.37% for the other posts.
Inflation adjustments were taken into consideration for determining
those percentages.
The best paid post showed an increase of 6% as compared to an
average salary variation of 10.87% for the other posts.
Inflation adjustments were taken into consideration for determining
those percentages, as well as increases in critical posts and retention
plans to fight losing human resources to other companies.
Social Dialog
Pursuant to Avianca Holdings S.A.’s commitment to respect and promote human rights,
and, among them, labor rights and the rights to freedom of association and to collective
bargaining as provided for in ILO conventions, all of the employees of the Avianca
Holdings subsidiaries can be automatically covered by the collective bargaining
agreements. Along these lines, dialog and collective bargaining negotiation processes
have sought to jointly define operations management and extralegal benefit granting
criteria.
Collective Bargaining Agreements (G4.11)
Country
Colombia
Trade Union
Affiliated
Employees
Asociación Colombiana de Auxiliares de Vuelo (ACAV)
(Colombian Flight Attendants Association)
408
Asociación Colombiana de Aviadores Civiles (ACDAC)
(Colombian Civil Aviation Pilots Association)
Asociación Colombiana de Ingenieros de Vuelo (ACDIV)
(Colombian Flight Engineers Association)
Asociación Colombiana de Mecánicos de Aviación (ACMA)
(Colombian Aviation Mechanics Association)
Sindicato Nacional de la Industria del Transporte Aéreo (SINDITRA)
(National Air Transportation Industry Trade Union)
Sindicato de los Trabajadores del Transporte Aéreo Colombiano
(SINTRATAC)
(Colombian Air Transportation Workers Trade Union)
Sindicato Nacional de Trabajadores de Avianca (SINTRAVA)
(National Avianca Workers Trade Union)
443
6
11
74
403
217
Mexico
Peru
Argentina
Asociación de Trabajadores de Tampa (ASOTRATAMPA)
(Tampa Workers Association)
Sindicato Nacional de Trabajadores de Transportes, Transformación,
Aviación, Servicios y Similares
(National Trade Union for Workers in Transportation, Transformation,
Aviation, Services and Similar Fields)
Asociación Sindical 1° de Mayo de Trabajadores y empleados del Comercio
en General, Agencias Automotrices, Comisionistas, Agencias y Oficinas
Particulares, Similares y Actividades Conexas del D.F.
(May First Trade Union Association of Workers and Employees in
Commerce in General, Automobile Dealerships, Brokers, Private
Agencies and Offices, Similar Fields and Related Activities in the Federal
District)
Sindicato Único de Trabajadores de Trans American Airlines
(Trans American Airlines Workers Unique Trade Union)
Sindicato de Tripulantes , Agentes de Servicio al Pasajero e Instructores de
Trans American AirLines S.A. (SINTRAITA)
(Trans American AirLines S.A. Crew, Customer Service Agents and
Instructors Trade Union)
Asociación del Personal Técnico Aeronáutico de la República de Argentina
(Republic of Argentina Technical Aeronautics Personnel Association)
Asociación de Personal Aeronáutico (APA)
(Aeronautics Personnel Association)
Total
Advance Notice (G4-LA4)
Country
Peru
Ecuador
Description
There is no legal minimum term of number of weeks for advance notice to
workers and their elected representatives, before implementing
substantial changes in the organization, which may affect them. However,
in the operating areas each leader communicates Operations Plan
changes to his or her teams before they are put into practice. Also, in the
current collective bargaining agreement signed with Sindicato Único de
Trabajadores de Trans American Airlines (Trans American Airlines Workers
Unique Trade Union), there is a job security clause that states that the
trade union must be informed in advance of group layoffs.
A minimum term of nine weeks is required for the employer to request
that the Labor Authority grant a dismissal action in the case of
non-renewal of a fixed-term contract. If the notice is for contract
termination due to non-compliant performance during the trial period, the
notice can be issued as late as the very day on which the trail period term
62
55
36
131
191
1
21
2,059
is completed. Also, when contract termination is due to the employer’s
unilateral decision, no grace period or advance notice is necessary; notice
can be given on the same day on which the contract is terminated.
Venezuela
The employer’s advance notice to employees was excluded because there
is no legal figure of dismissal without just cause.
Bolivia
In matters of work contracts, employees must give a thirty-day advance
notice when they wish to leave the company and employers must give
employees a ninety-day advance notice to employees who have worked
three consecutive months or more. The party who fails to give advance
notice will pay an amount equal to the salary for the established periods.
Labor law provides that workers and employers alike can resort to
unilateral work contract termination, observing the following terms:
Argentina
Brazil
 Workers who wish to leave the company must give a fifteen-day
advance notice.
 Employers who wish to dismiss an employee must give an advance
notice, the term of which is based on the worker’s time in the
company:
 fifteen days if the worker is in the trail period.
 one month if the worker has been in the company for up to five
years.
 two months if the worker has been in the company for more
than five years.
The legal advance term for a company to notify dismissal must be equal to
or more than thirty days if the contract so specifies. In the case of
dismissal with just cause, no advance notice is necessary.
Either of the parties to an indefinite term contract can terminate it with
advance notice to the other party, the term of which is determined
according to the following:
Paraguay
Uruguay
 thirty days if the worker has completed the trial period and has up to
one year of service
 forty-five days if the worker has more than one year and up to five
years of service
 sixty days if the worker has more than five years and up to ten years of
service
 ninety days if the worker has more than ten years of service.
If the worker continues working during the advanced notice term, such
term will be included when calculating the worker’s time of service.
There is no legal term for advance notice either for the employer or the
employee to terminate a work relation.
Advance notice of dismissal varies according to the employee’s time of
service:
Costa Rica
Mexico
Colombia
 4 weeks if the employee has been in the company one year or more.
 2 weeks if the employee has been in the company less than one year
but more than six months.
 1 week if the employee has been in the company less than six months.
There are no legally established terms for advance notice; however, the
terms are normally established by the workers’ trade union involved.
Colombian law eliminated advance notice terms and the Organization has
no policy relating to that matter.
Guatemala
and
The minimum advance notice term is one day.
Honduras
North
America
The advance notice term is nine weeks; it only applies if operational
changes affect 33% of the employees and it would only apply to the
employees on the Tampa Cargo payroll, not to the other employees in the
region.
Benefits and Loans (G4-LA2)
During 2014 more than 209,355 benefits were granted to the Avianca Holdings S.A.
subsidiaries’ employees; they contributed to enhancing their life quality at personal and
at family levels alike. The benefits consisted of the following, among others:
-
Transportation aids
Food aids
Health aids
Educational aids
Productivity incentives.
Loans in 2014
Type
Calamity
Ordinary
# of Employees Benefited
117
774
Housing
23
Safety and Occupational Health
For employee health and safety management, the Avianca Holdings companies use the
Safety Management System, aligned with International Civil Aviation Organization
standards (ICAO).
It comprises mechanisms that enable identifying the hazards associated with the
activities that each of the Avianca Holdings operating companies carries out, preparing
risk assessment s, and establishing protocols, duties, responsibilities and activities aimed
at strengthening a safety culture for the performance of all of their operations.
Health and Safety Committees (G4-LA5)
The Health and Safety Committees, led by the Safety, Health and Environment
Management Office, are a participation mechanism where all direct hire employees are
represented. It channels their suggestions and contributions for compliance with health,
safety and environmental objectives.
Pursuant to the law in each country, these committees are made up of representatives
designated by the directing officers of the operating companies and of a group chosen by
the employees; in some cases, the latter are determined by election.
Where there are no norms regarding the composition of such committees, the
subsidiaries have proactively created work teams, thus enabling interlocutors among the
dependencies and the Safety, Health and Environment Office, and the teams also help
carry out scheduled prevention activities.
The functions of these committees focus on giving support to the management of the
Avianca Holdings operating companies concerning topics of workplace risk prevention,
the promotion of safety and occupational health, and communication between the
employees and the company regarding workplace safety and occupational health.
The data shown in the table below corresponds to the employees who work for the
companies Avianca, Tampa Cargo, Aerogal, Trans American Air Lines S.A., Taca
International, Taca Costa Rica, Star, Lacsa and Aviateca, located in Colombia, Ecuador,
Peru, Chile, Bolivia, Venezuela, Costa Rica, El Salvador, Guatemala, and Mexico,
respectively.
Colombia and Europe Region
The Safety and Occupational Health Committees (one for Avianca and one for Tampa
Cargo) are comprised of an equal number of company representatives and employee
representatives; the latter are elected by vote.
Functions
Participation
 Make safety inspections.
 Give support to work accident investigations.
 Oversee and participate in the Safety and Occupational
Health Management System (SG-SST is the Colombian
acronym).
 Propose and participate in accident prevention activities.
 Serve as an employee participation and consultation
body.
Company
Employees
•Avianca: 5
•Tampa: 3
•with its corresponding deputies
•Avianca: 5
•Tampa: 3
•with its corresponding deputies
Central America
Functions
Occupational
Health
Committee
Costa Rica
•Safety Inspections
•Emergeny Brigades
•Substandard Conditions and Actions
•Definition of Imrovement Plans
Functions
Industrial Safety
Committee
El Salvador
•Safety Inspections
•Work Accident Investigation
•Special Projects
Functions
Guatemala
Participation
HSE Committee
•Safety Inspections
•Work Accident Investigation
•Special Projects
Company
Employees
• Costa Rica: 11
• El Salvador: 18
• Guatemala: 7
• Costa Rica: 13
• El salvador: 18
• Guatemala: 7
North America
Mexico - HSE Committee
Functions
Safety
Inspections
Work Accident
Investigation
Participation
Special Projects
Company: 7
Employees: 8
South America
Participation
Country / Committee
Functions
Company
Employees
6
6
2
2
2
2
4
4
6
6
6
6
6
6
6
6
6
6
5
5
5
5
Peru:
Safety and Occupational Health
Committee
Chile:
Safety and Occupational Health
Peer Committee
Bolivia:
Safety and Occupational Health
Mixed Committee
 Identification of
hazards
 Risk Assessment
 Safety
Inspections
 Work Accident
Investigation
Venezuela:
Safety and Occupational Health
Committee
Quito
Guayaquil
Ecuador
Safety and
Occupational
Health Peer
Committee
Cuenca
Malta
Baltra
San Cristóbal
Coca
 Work Accident
Investigation
 Building,
Facilities, and
Equipment
Inspections
 EPP Inspection
 Workplace
Conditions
Analysis
 Promotion of
Employee
Prevention
Measures
Health and Work-related Accident Indicators (G4-LA6)
Work-related Accident Injury Index16
20
14
3.16
5.32
Total
4.25
9.85
Colombia and
Europe
2.49
0.5
Central America
2.28
3.42
South
America
20
13
2.8
2.5
5.76
4.13
0.99
1.95
1.73
1.41
Thanks to the reporting culture throughout the Organization, the data used to calculate
this index includes all of the events, even those that did not generate disability or those
that only required one day for the pertinent medical attention, which represent 54% of
the total number of reported events. That means that, out of the total number of events
during the year, 46% required more than two days of disability.
The work-related accident injury index, including all of the stations for which there is
information17 indicates that, for every 200,000 man hours, men had approximately three
work-related accidents and women had five.
The indicator was higher than in 2013 due to an increase in employee reports, as part of
the campaigns for sensitization and strengthening a Safety Culture within the Avianca
Holdings subsidiaries.
To reduce the number of work-related accidents causing injuries, joint efforts with the
areas are being made to develop effective protection measures and to continue
reinforcing a culture of self-protection and of protecting others.
16
Calculation: (number of work-related accidents / total number of man hours) * 200,000
The recorded data corresponds to employees who work for the companies Avianca, Tampa, Aerogal,
Trans American Air Lines S.A., Taca International, TTS, Taca Costa Rica, Star and Lacsa located in
Colombia, Ecuador, Peru, Costa Rica, and El Salvador, respectively. The data for contractors was not
included in this indicator.
17
The Workplaces Where Most Accidents Occurred
Aircraft
Ramp or Platform
Public Accesses
52%
12%
6%
Blows
Blows
(58%)
(76%)
Sprains
Sprains
(29%)
(12%)
Blows
(44%)
Sprains
(21%)
Barotraumas
(13%)
Parts of the Body Most Affected
Hands
15%
Several
Parts
14%
Feet
13%
Measures Adopted
Colombia
• 61% of the reported events occurred inside the aircraft and 40%
of them were due to an employee hitting a part of the body
against the aircraft or against on-board elements. To reduce such
injuries, efforts are being made with the operational areas, thus
generating improvement plans and prevention measures such as
a review of the elements purchased for on-board service,
procedue adjustments, a review of protection measures, followup on the indicators, employee training, designs according to
ergonomic standards, and a review of personal protection
equipment, among others.
South
America
• 42% of the events occurred inside the aircraft and 76% of them
were due to an employee hitting a part of the body against
pieces of equipment. In this region there is outstanding support
from the Safety and Occupational Health Committees for
investigating the events. The area chiefs have become more
empowered and they are the ones who disseminate the lessons
learned from the events. In addition, during this year there was
an event that resulted in an employee's death; it was caused by a
road accident on the way to work. The Organization is working on
a road safety program to reduce the probability of the
occurrence of this type of event.
Central
America
• 41% of the events occurred on the ramp and out of them 44%
involved blows and 44% sprains. As part of the measures
implemented to reduce such events, the Organization has sought
to improve personal protection measures for processes
associated with standard aircraft design issues. Also, the
importance of a safe behavior has been reinforced among the
employees, as has the culture of safety that the Organization
promotes.
Work-related Disorders and Illness Ratio18
0,06
0,04
0,04
Men
0,03
0,02
2012
2013
0,02
Women
2014
During the year there were only four cases of work-related disorders and illness in
Colombia; they involved muscular-skeletal disorders in the upper limbs.
18
Calculation: (total number of disease originated in the workplace / total number of man hours) * 200,000
To detect the appearance of this type of disorder in time, Epidemiological Surveillance
Systems have been implemented for priority risks and joint sessions with the Labor Risk
Administration are held to follow up on the cases under study, in order to ensure a timely,
favorable response for the employees.
The Avianca Holdings operating companies showed increased coverage of occupational
health medical exams for the purpose of detecting possible cases in a timely manner,
even in countries where the law does not so require.
2014
Index of Work Days Missed due to Work-related Accidents or to Work-related Disorders
or Illness19
18.69 16.72
Colombia and
Europe
20.32
3.93
Central America
22.64 22.40
South
America
2013
Total
15.09 23.22
13.3
13.4
11.9
18.3
15.6
9.6
12.9 11.06
The index of work days missed in general, including all of the stations for which there is
information, indicates that, for every 200,000 man hours, men missed approximately 19
work days20 and women missed approximately 17, due to work accidents or work-related
disorders or illness.
In Colombia, men missed the most work days (59%) and the percentage was highest for
Tampa representing 82% of the absences. Notwithstanding, the index of missed work
days was higher for women, due to the lower number of man hours for that population.
Likewise, in Central America men missed more work days (91%) due to work accidents or
work-related disorders or illness. Women were absent fewer work days than the year
before, the index dropping from 27% reported in 2013 to 9% in 2014.
19
Calculation: (number of work days missed due to work-related accidents or work-related disorders or
disease / total man hours) * 200,000
20
The days calculated are calendar days or natural days; they are posted according to the dates stated in
the medical supporting documents (days of disability or days of rest ordered by the doctor).
In South America, men missed more work days due to work accidents or work-related
disorders or illness, representing 62% of the total days missed. The most representative
report was seen in Ecuador where men represented 80% of the absences from work
whereas in Peru women represented 58% of the work days missed.
2014
Absenteeism Index21
3,266 4,193
Colombia and
Europe
1,238
923
Central America
2,381 5,010
South
America
2013
Total
5,633 6,185
2,895 3,083
6,513 6,742
523
522
1,063 1,021
The index for absenteeism due to disorders or illness, including all of the stations for
which there was information, states that, for every 200,000 man hours, men were absent
3,266 days and women were absent 4,193 days, due to work accidents, work-related
disorders or disease or common illnesses.
21
Calculation: (number of work days missed due to disability caused by general illnesses, work-related
accidents and work-related disorders or disease / total man hours) * 200,000
Most Frequent Illnesses or Disorders
Colombia
•Respiratory disorders (20%)
•Traumas, poisoning, and other external causes (13%)
•Muscular and skeletal disorders and conjunctive tissue disorders (13%)
•Infectious and parasitic diseases (13%)
Centroamérica
•Respiratory disorders
•Muscular and skeletal disorders
•Digestive disorders
Ecuador
•Respiratory disorders (13%)
•Muscular and skeletal disorders (12%)
•Digestive disorders (11%)
Perú
•Muscular and skeletal disorders (14%)
•Traumas, poisoning, and other external causes (10%)
•Respiratory disorders (5%)
Activities for Reducing the Occurrence of Disorders and Illness
Region
Colombia
Central
America
South America
Activities
 Promoting healthy habits to prevent cardiovascular risks
 Transmittable gastrointestinal and respiratory disorders and
disease prevention activities
 Talks on alcohol and psychoactive substance consumption
 Talks on sexual and reproductive health
 Talks on cancer prevention
 Nutrition and metabolism control sessions
 Kidney health issue sessions
 Health fairs
 Vaccination sessions
 Talks and workshops aimed at preventing common pathologies
frequently seen in the region
 Vaccination sessions
 Cardiovascular risk prevention programs
 Transmittable gastrointestinal and respiratory disorders and
disease prevention promotion activities
 Health fairs
 Nutrition and metabolism control activities, among others.
Risk Prevention and Control G4-LA7
During 2014 health promotion and prevention activities continued, as did activities to
identify risk factors. Epidemiological surveillance programs and systems were executed
for timely identification of work-related and personal conditions that can affect the
employees’ health.
Also, intervention activities continued, to avoid employee exposure to the risks that
generate such disorders and diseases and information systems were developed for case
follow-up and to monitor the effectiveness of the activities carried out.
Hazard: Exposure to Noise
Personnel Exposed
5,624
Direct Hires
2,537
Contracted
In 2014 there were no work-related disorders due to this hazard.
 From the health perspective, epidemiological surveillance program
and systems were executed for timely identification of work-related
and personal audiometric tone conditions of airways and bones,
which may affect the employees’ health due to noise exposure. And
sensitization activities were carried out, explaining the effects that
Management
noise has on health.
 From the safety perspective, hygiene studies were conducted, to
monitor the levels of exposure to noise; the effectiveness of the
personal protection equipment used was checked on an ongoing
basis; training on the proper use and maintenance of such equipment
was given; and their use was verified during safety inspections.
Hazard: Exposure to Carcinogen Substances (BTX -Benzene, Toluene, Xylene)
Personnel Exposed
330
Direct Hires
276
Contracted
In 2014 there were no work-related disorders due to this hazard.
 From the health perspective, work-related medical exams were
conducted for a timely detection of disorders associated with
chemical risks (hepatic and renal tests, phenols in urine tests, blood
work tests).
 From the safety perspective:
 less toxic substances were sought; they must also meet the
recommendations of the aircraft manufacturers given the
characteristics of the industry;
 options were sought for personal protection equipment that can
offer proper protection against the various levels of exposure;
Management
 exposure level monitoring was done;
 work was done with the areas involved, to generate measures to
reduce employee exposure to such substances;
 processes were substituted, seeking less exposure to chemical
substances;
 training was done to reinforce safe storage and use of chemical
substances;
 work was done on implementing emergency equipment
availability control methods;
 procedures were created for the safe transportation and handling
of such substances.
Hazard: Exposure to improper positions, load handling, accumulated trauma
Personnel Exposed
13.308
Direct Hires
5.925
Contracted
In 2014 there were four cases associated with this hazard.
 Sensitization talks were given and workshops were held on proper
posture and measures to be taken when carrying out activities that
involve exposure to biomechanical risks.
 Articulation flexibility and mobility exercise programs were carried
out.
Management  Process modification designs took into account ergonomic
recommendations, to avoid the generation of such injuries.
 Experts on these topics gave technical support, to monitor employees
most exposed to such injuries.
 Ergonomic criteria were kept in mind when acquiring new furniture,
equipment and, tools.
Health and Safety Aspects in Agreements with Trade Unions (G4LA8)
The data recorded below corresponds to employees who work for the companies
Avianca, Tampa Cargo, and Trans American Airlines S.A. located in Colombia and in Peru.
The collective bargaining agreements with the trade unions of Avianca, Tampa Cargo,
and Trans American Airlines were not modified in respect to safety and health benefits.
For the purpose of this report, the collective bargaining agreements with the main nine
trade unions of these companies are discussed below.
For Avianca, not only the commitments acquired regarding the trade unions are stated,
but also the commitments that it has, as stipulated in its Voluntary Benefit Plan (PVB in
Spanish), which cover all of the non-union employees.
Health and Safety
Aspect included
Coverage
(Percentage)
Partial or total
economic aid for
healthcare or for
subsidized medical
insurance policies
44%
Supplies for Safe
Workplace
Conditions
11%
Special Concessions
for Employees with
Chronic Illnesses or
for Pregnant
Employees
Trade Union
Participation in
Safety and Health
Issues in the
Workplace
Description
Four of the nine agreements of the Avianca Holdings
subsidiaries include agreements regarding this topic.
Pursuant to such agreements, the operating
company pays an aid for medical or dentist service
provision, an aid for a medical plan with a higher
level of healthcare coverage, and partial or total
payment of healthcare insurance.
One agreement specifies the subsidiary’s obligation
to supply first aid kits, sanitary facilities, refillable
water coolers and other drinking water sources for
employee consumption, protection elements,
equipment, materials, and tools, in spite of the fact
that supplying such items is covered by law and are
for the benefit of all employees. The same
agreement further specifies that there must be
employee rest areas.
11%
One trade union agreement in Colombia stipulates
that the company agrees to grant a maternity bonus
for each child born.
11%
One agreement sets forth trade union participation
in the Workplace Safety and Health Committees as
well as in work-related accident or work-related
disorders or disease investigations, in order to
propitiate a safe, healthy workplace.
Maternity and Paternity Leaves (G4-LA3)
397 maternity or paternity leaves were granted in 2014, representing 40% more than
those recorded in 2013. All of the employees who took the leave returned to their posts.
One year after the leave there was a retention rate of 93.2% for women and of 95.7% for
men.
2013
Employees who took a maternity or
paternity leave
Employees who returned to work
after the leave
Employees who remained 12
months after they took the leave
Retention rate after a maternity or
paternity leave
2014
Women
Men
Women
Men
123
159
248
149
120
157
248
149
119
155
229
146
96%
97%
93.2%
95.7%
Training and Development (G4-LA9)
In 2014 the Avianca Holdings subsidiaries conducted a total of 1,337,798 hours of training
in different programs. The programs represented an average of 48.73 hours of training for
each male employee and of 33.64 hours of training for each woman employee. The
greatest number of training activities was for employees in operational posts.
Administrative
Operational
Total
Employees
Men
Women
2,184
3,011
13,157
14,530
15,341
17,541
Hours of Training
Men
Women
25,247
27,303
722,338
562,910
747,585
590,213
Average
Men
Women
11.55
9.06
54.9
38.74
48.73
33.64
To support employee professional career development, in 2014 USD84,000 was invested
in external educational program development at a postgraduate level or higher.
Furthermore, job performance evaluations were made on 48% of the employees with
administrative or coordination posts.
Attention to Complaints and Claims
2,810 complaints and claims regarding work practices were received in 2014, 46% more
than the year bef0re; they included rights of petition, grievances, and petitions for
effective legal protection based on fundamental rights; all of them were submitted to the
Relations Management Office. Likewise, eleven legal actions were filed in Peru as were
seven in Ecuador.
The main claims received entailed situations of prolonged disability (over 11 months and
10 days) where the aid for paying social security ceased and the situation resulted in a
suspension of the work contract, pursuant to a measure recently adopted in 2014.
Out of the complaints submitted, 2,774 were resolved, excluding the administrative
grievances handled by the Labor Ministry because, pursuant to law, they are still under
investigation.
9. Avianca Holdings’ Commitment to
Social Development
Building and implementing the Corporate Social Responsibility and Sustainability Plan
reiterates Avianca Holdings’ commitment to the sustainable development of the regions
where it operates. This commitment becomes a reality with programs that promote the
wellbeing and the better life quality of the Holding Company’s employees, customers,
providers, shareholders, investors, and the external community.
These activities are aimed at aligning sustainability management with the different lines
of business, in order to respond to economic, environmental, and social development
needs through the projects and initiatives implemented.
Social Dimension of the Corporate Responsibility and Sustainability Plan
 Promote social projects in topics of health,
education, and culture, which will contribute
to improving the employees’ life quality and
the life quality of the communities where
the Holding Company airlines operate.
Social Responsibility and
Sustainability Plan
 Earn the passengers’ loyalty by providing
quality service and involving them in social
projects that will project them as social
action promoters.
Programs (G4-15)
The Organization has the programs described below; they are aimed at contributing to
improve life quality of the communities where Avianca Holdings S.A. operates, and
especially of some vulnerable populations whose needs can be satisfied through the
products and services provided by its subsidiaries.
Miles Bank
The Miles Bank benefits children of scarce resources who
need specialized medical treatment or surgery in a city other
than the city where they live.
The program works thanks to the airlines’ support and the
support of the LifeMiles frequent flyer program members,
who participate in this initiative by donating the miles that they accrue on their trips. In
2014 the program had 395 beneficiaries, an accrual of 5,018,813 miles and USD 116,882.57
in airline tickets.
1,692
43,185,891
beneficiaries
miles accrued from the
Company and from LifeMiles
members from 2006 to 2014
from 2006 to 2014
395
Beneficiaries
5,018,813
Miles accrued from the Company and from LifeMiles members
2014
Results
3,767,000
Miles redeemed
USD 113,010
In value for miles redeemed
USD 116,882.57
In value for national and international tickets
Miles Redeemed
Fundación Cardioinfantil
Individuals (cases in Colombia)
Individuals (international cases)
Total
Beneficiaries
136
24
28
188
Miles Redeemed
2,004,000
757,000
1,006,000
3,767,000
Airline Tickets
Beneficiaries
Fundación Cardioinfantil
Individuals (cases in Colombia)
Individuals (international cases)
Total
50
119
38
207
Value of the Tickets Used
(in USD)
9,198.07
91,450.26
16,234.24
116,882.57
Avianca Solidaria
This solidarity program channels corporate support in
emergency situations of natural disasters and social crises.
It also offers support to social impact projects in the
countries where the Holding Company airlines operate:
 Transportation for medical personnel, volunteers
and victims
 Transportation of cargo consisting of donations and aid items
 Economic and in-kind contributions.
Thanks to this program, 52,485.7 kg of cargo was transported in 2014 as humanitarian aid
in Colombia, with a value of USD 124,118.
Transportation of Food Kits and Water
From Bogotá to Riohacha
Weight: 22,275 kg
Sponsored by Avianca, Deprisa, Fundación Juan Felipe Gómez Escobar,
Terpel, Conexión Colombia, Expreso Brasilia S.A., and the Colombian Air
Patrol
Commercial Value: USD22,383
Transportation of Water
From Bogotá to Riohacha
To benefit the population of La Guajira affected
by the draught
Weight: 934 kg
Led by the Avianca flight attendants group
Commercial value: USD939
Transportation of Technological Equipment for Fundación Golondrinas Classrooms
From Bogotá to Medellín
Weight: 51 kg
Requested by Conexión Colombia with the support of Deprisa
Commercial value: USD24
Medical and Dental Care Drive
Transportation of medical equipment, medicine, and supplies for the health
brigade
From Bogotá to Leticia
To benefit the native Indian peoples of San Sebastián, San Antonio, Castañal,
and San Juan de los Lagos
Weight: 1.100 kg
Sponsored by Avianca, Deprisa, Terpel, and the Colombian Air Patrol
Commercial value: USD1,904
Other Deprisa Transportation for Humanitarian Aid Purposes
Multiple destinations
Weight: 22,324.2 kg
Commercial value: USD18,914
Excess Baggage Cost Waiver
Social Responsibility related baggage cost waiver: 52 cases
Total weight waived: 5,723 kg
Total amount waived: USD78,955
Jean Day with a Social Purpose Fundación del Quemado
USD999 donation by Avianca employees, to support the recovery
process of the Fundación del Quemado severe burn patients
Recycle-a-thon of plastic bottles for the foundation to use in patient
treatments 78.5 kg collected
“Niños por América” Program
This initiative is aimed at giving children of scarce resources who
stand out for their behavior and academic excellence the
opportunity to fly and visit different regions of Latin America
and other regions where we fly to.
Beneficiaries get the chance to learn about the aviation industry through educational
activities. The first activity takes place at the city of origin air terminal, where the children
can learn how the airline works, how aircraft fly, and other aspects related to the airline’s
operations and service.
153
USD 3,613.51
Children beneficiaries in 2014
in value from donated airline tickets
153 children benefited from this program in 2014, with ticket donations that amounted to
USD 3,613.51. The main destinations for that year included Santa Marta, Cartagena,
Madrid, and Cuzco.
“Yo colaboro” Volunteer Work
Some employees of the Avianca Holdings’ subsidiaries
participate in social development programs in countries
where the Company operates.
Aligned with the program philosophy, the employees who
voluntarily join the “Yo colaboro” program play an active
role in the activities and projects led by the Social Responsibility area, donating their
time, energy, knowledge, economic and in-kind contributions.
88 volunteer activities were carried out in 2014 to support 31 projects in Colombia,
Guatemala, Ecuador, Peru, Costa Rica, Salvador, Curacao, Mexico, the United States, and
Honduras, which required a contribution of USD25,707 from the Company and from its
employees.
Colombia
City
Bogotá
Pereira
Manizales
Cúcuta
Bucaramanga
Cali
Medellín
Barranquilla
Projects Supported
Doctora Clown
Voz Animal
Asociación Ámese
Best Buddies
Colegio Integrado de Fontibón
ABO
Aldeas SOS
Fundación Cardioinfantil
Fundación Bambi (led by Deprisa)
Fundación Enseñando con Amor
Fundación Niños de los Andes
AMCAF
Fundación Servidores del Servidor
Aldeas SOS
El paraíso de la mascota
Clínica Infantil Santa Ana
Fundación Futuros Valores
International Stations
Country
Peru
Guatemala
El Salvador
Costa Rica
Ecuador
Projects Supported
Escuela Pachacitec 148 en Ventanilla
Clínica de quemaduras
Aldeas SOS
Casa Ronald Mc Donald
Centro Educativo Especial Álida España
FUNDAECO
Escuela Reyna Barrios
Fundación Ayúdame a Vivir
Centro escolar Dr. Victorino Ayala
Aldeas Infantiles SOS
Centro de Bienestar Integral El Boquerón
Caserío Las Marías en Cantón San Isidro
Comunidad La Cuartería
Actividad ambiental Parvularia en Cuyultitán
Comedor San Lázaro
Biblio-Recreo
Aldeas infantiles SOS
Alcaldía Puerto López
Hogar de paz
CETI Paraíso
Campaña: Mejor es dar
Specific Volunteer Work Led by Employees
Country
Colombia
Honduras
Activities Carried Out
La Caja del Amor – Internal Customer Service in Bogotá
Lechetón milk drive in Barranquilla
Donation to Fundación Bosque Popular in Bogotá
Parroquia San Miguel Arcángel in Bogotá
Guided visit for vulnerable population children
Support to the project “Jesus Sharing Smiles”
United States
Curacao
Mexico
Guatemala
El Salvador
Christmas volunteer work in New York with the Missionary
Sisters of Charity
Support to a disabled young man in Los Ángeles
“Clean Up 2014” island clean-up campaign
Christmas volunteer work with children from Fundación Hogar
Dulce Hogar
Christmas volunteer work with children from Hogar Luz de
Fátima
Children’s Day celebration at Hospital Benjamín Bloom
Jean Day with a Social Purpose
For the start of the school year, Company employees joined a campaign to donate school
kits for the benefit of children from different institutions in participating countries. A total
of 9,141 school kits were gathered and delivered to schools in the countries where
Avianca Holdings’ companies operate.
Place
Collected School Kits
Beneficiary Institution
Bogotá
2,926
Colegio Integrado de Fontibón
Manizales, Pereira, Armenia,
Cali, Medellín, Bucaramanga
711
Granja Infantil de Jesús de la
Buena Esperanza - ICBF
Barranquilla
35
Colegio La Concepción de
Barranquilla
Guatemala
378
Escuela Reyna Barrios Zona 13
El Salvador
2,172
Centro Escolar de Cuyultitán
Costa Rica
508
Escuela de Guarari
Peru
405
Educativa Inicial #148 de
Ventanilla
Ecuador
2,006
Aldeas SOS
In addition, another Jean Day initiative took place in 2014 to support the Fundación Voz
Animal, which collected USD946 and 81 donated items, to support the foundation’s
processes.
Strategic Alliances
Aimed at broadening the support given by the Avianca
Holdings S.A. subsidiaries to the development of Latin
America, the Company forms alliances with leading
institutions in social, educational and cultural projects in the
region.
132 projects benefited from discounts in airline ticket fares in 2014. The tickets were used
by the project managers and/or members of the benefited communities for their
activities. These alliances represented an investment of USD 271,356.27.
Art and Culture
Aimed at strengthening the national identity and encouraging local artist expositions, the
Avianca Holdings’ companies support different cultural spaces by transporting artwork. In
2014, the airlines transported 2,154.2 kg to different domestic and international
destinations, which required an investment of USD 11,619.22 USD.
Pereira Art Museum
Master Federico Uribe presented his painting and sculpture exhibit “Color Construido”
(“Constructed Color”) at the Pereira Art Museum; this exhibit is the successful result of
the artist’s interest in construction. To support the artist and his exhibit, Avianca
contributed by transporting the pieces between Miami and Bogotá.
Avianca’s Art Collection
This collection started as an initiative led by the directors of Aerovías del Continente
Americano - Avianca in the 1980’s, aimed at encouraging artistic and intellectual
expressions in the Colombian society. It is now one of the main national cultural
treasures.
Currently comprising 368 works of art (paintings, sculptures, engravings, and drawings,
among others), this extraordinary legacy is kept carefully organized, classified, and under
custody.
Its interest in supporting art in all its forms has led the Company to decide to share this
artwork with the public. Through an alliance with the Bogotá Modern Art Museum
(MAMBO), which manages part of the collection through a commodatum agreement, art
expos are being held, to encourage interaction with students, scholars, businessmen,
experts, and occasional visitors, through activities that empower the spirit. So, over the
past three years the touring art expo “Exposición Itinerante”, comprising 48 carefully
selected works of art has been seen at the Tolima Art Museum, the Zenú Contemporary
Art Museum in Montería, the Caldas Modern Art Museum, the Bucaramanga Modern Art
Museum, the Rayo Museum in Roldanillo-Valle, and the Visual Arts Museum at
Universidad Jorge Tadeo Lozano in Bogotá.
In 2014 the Company transported 1,074.2 kg of that collection between Bogotá and Cali
for public exhibits, with a total investment of USD 10,059.33.
Workshops and Training
Under the coordination of the Social Responsibility area, the Company did 30 volunteer
workshops that contributed to strengthening the employees’ skills and aptitudes, as well
as sensitizing, motivating, and improving teamwork. Training sessions took place in eight
cities in Colombia and at six international stations.
Donations
In 2014 the Company made donations to different Colombian foundations and
foundations from the other countries where the Holding Company subsidiaries operate,
for a total of USD 387,621.67, out of which USD 25,299.51 were contributed by employees
and passengers.
Likewise, the Company made donations in-kind that corresponded to 164,397 kg of
materials and inputs aimed at helping the supported foundations fulfill their missions.
Monetary Donations
Beneficiary
Fundación
Cardioinfantil
Teletón Quito
(Ecuador)
Teletón
Colombia
Teletón El
Salvador
ANDI
Other donations
Concept
Monetary donation for the show held by the
Colombian National Beauty Contest at the FCI
facilities.
Economic result of the RunTour athletic
games held for the social purpose of
equipping the Cardiovascular Pediatrics Unit.
Donation from Company resources
Donation from on-board wristband sales
Donation Amount
Donation from Company resources
USD83,454
Donation from Company resources
Donation from on-board promotional
product, food, and wristband sales
“Soy Capaz” campaign
CeCo RS: El Salvador Art Museum
CeCo Roberto Kriete: El Salvador Asociación
AGAPE
USD80,000
USD22,974.83


USD75,960.33
265,000 miles valued
in USD7,950
USD10,500
USD2,515
USD22,784.51
USD5,212
USD520
USD33,460
Donations in Kind
Beneficiary
Biblio-Recreo
(Ecuador)
Fundación Sol de
los Andes
Fundación Sanar
Fundación Vespa
Fundación Semilla
de Mostaza
Concept
Books left by passengers in Company
aircraft
Donation in kind
Plastic caps for medical treatment handling
for children with cancer.
450 kg
Donation of uniforms with the old Avianca
logotype, aimed at generating employment
and economic stability for women heads of
household
Donation of leather remnants and aircraft
seat fabric, to be used for making wallets
and purses
Donation of blankets
The Colombian
National Navy
Asociación Reto a
la Esperanza
Donation of food from the food court in the
Bogotá Air Terminal
FIDES
Delivery of packages of unclaimed items:
baggage, baby carriages, wheelchairs, etc...
that had been stored for over six months at
airport warehouses
Delivery of recycled paper
Aldeas SOS (Perú)
Fundación Tierra y
Ser (Perú)
120 kg


151,000 kg
Commercial value:
USD2,521
1,623.13 kg


Conexión
Colombia
Aldeas Infantiles
SOS
150 books
1,300 units
Commercial value:
USD4,706
 1,405 units
 Commercial value:
USD22,704
 3,832 servings
 Commercial value:
USD12,360
350 stacks
404 stacks
6,209 kg
Delivery of plastic caps
110.3 kg
Fundación Aurora
(El Salvador)
Delivery of recyclable employee waste
materials, for rural community women to
use in handcrafted accessories
4,643.24 kg
Iglesia Cristo Vive
de San Lucas
Sacatepéquez,
Guatemala.
Delivery of uniforms with the old TACA
logotype
160 kg
10. GRI Key Indicators G4
This report was made pursuant to the Sustainability Reporting Guidelines for Global
Reporting Initiative GRI G4, general standard disclosure option.
Indicator
Strategy and Analysis
G4.1 Provide a statement from the
most senior decision-maker of the
Organization (such as CEO, chair
or equivalent senior position)
about the relevance of
sustainability to the organization
and to the organization’s strategy
for addressing sustainability.
G4.2 Provide a description of key
impacts, risks and opportunities.
Organizational Profile
G4.3 Report the name of the
organization.
G4.4 Report the primary brands,
products, and services.
G4.5 Report the location of the
organization’s headquarters.
G4.6 Report the number of
countries where the organization
operates, and names of countries
where either the organization has
significant operations or that are
specifically relevant to the
sustainability topics covered in the
report.
G4.7 Report the nature of
ownership and legal form.
Answer/ Chapter
Page
Letter from the CEO
9
Letter from the CEO
9
Avianca Holdings S.A.
Avianca Holdings S.A.
Profile
Panama City, Republic of
Panama
Avianca Holdings S.A.
Profile
The Company is
incorporated in the
Republic of
Panama. It is a stock
corporation that has it
stock listed on the
Colombian Stock
3 and 4
3
Omission
G4.8 Report the markets served
(Including geographic breakdown,
sectors served, and types of
customers and beneficiaries).
G4.9 Report the scale of the
organization, including:
-Total number of employees
- Total number of operations
- Net sales or net revenues.
G4.10 Report the following labor
information:
- Report the total number of
employees by work contract and
gender.
- Report the total workforce by
region and gender.
G4.11 Report the percentage of
total employees covered by
collective bargaining agreements.
G4.12 Describe the organization’s
supply chain.
G4.13 Report any significant
changes during the reporting
period regarding the
organization’0s size, structure,
ownership or its supply chain.
G4.14 Report whether and how the
precautionary approach or
principle is addressed by the
organization.
G4.15 List externally developed
economic, environmental and
social charters, principles or other
initiatives to which the
organization subscribes or which it
Exchange and on the New
York Stock Exchange
Avianca Holdings S.A.
Profile / Avianca Holdings’
Commitment to
Generating Value
Avianca Holdings S.A.
Profile / Avianca Holdings’
Commitment to
Generating Value
3
23 to 25
4
18 to 20
Avianca Holdings’
Commitment to Its
Employees
53 to 56
Avianca Holdings’
Commitment to Its
Employees
Avianca Holdings’
Commitment to Its
Strategic Partners
During 2014 there were no
significant changes.
57,58
Avianca Holdings’
Commitment to
Generating Value
Avianca Holdings’
Commitment to the
Environment
Avianca Holdings’
Commitment to the
Environment
Avianca Holdings’
Commitment to Social
26,27
32
38, 39
45 to 47
endorses.
G4.16 List the main associations of
which the organization is a
member (such as industry
associations) and national and/or
international advocacy
organizations that the
organization endorses.
Identified Material Aspects and
Boundaries
G4.17 List all entities included in
the consolidated financial
statements and report whether
any such entity is not included in
the sustainability report.
Development
During 2014 Avianca S.A.
was an active member of:
-Asociación del Transporte
Aéreo en Colombia
(ATAC); Asociación
Nacional de Empresarios
de Colombia (ANDI);
Cámara de Comercio
Colombo Americana;
Cámara de Comercio
Colombo Venezolana;
Federación Colombiana
de Transportadores de
Carga por Carretera
(COLFECAR); Asociación
Colombiana de Agencias
de Viaje y Turismo
(ANATO); International Air
Transport Association
(IATA); Latin American
and Caribbean Air
Transport Association
(ALTA)
This report does not
contain information for the
following companies that
are included in the Avianca
Holdings S.A. financial
statements as subsidiaries:
Aerospace Investments,
Limited; Aviation Leasing
Services (ALS), Inc.;
Aviation Leasing Services,
Investments (ALS), S.A.;
AVSA Properties II, Inc.;
Intercontinental
Equipment Corp.; Little
Plane, Limited; Little Plane
G4.18 Explain the process for
defining the report content and
the Aspect Boundaries.
G4.19 List all the material Aspects
identified in the process for
defining report content.
G4.20 For each material Aspect,
report the Aspect Boundary within
the organization. Otherwise,
indicate that the Aspect is not
material for some of the entities in
the organization.
G4.21 For each material Aspect,
report the Aspect Boundary
outside of the organization.
G4.22 Report the effect of any
restatements of information
provided in previous reports, and
the reasons for such restatements.
G4.23 Report significant changes
from previous reporting periods in
Six, Limited; Southern
Equipment Corp.;
Turboprop Leasing
Company, Limited;
Technical & Training
Services, S.A. de C.V.;
Ronair N.V.; Getcom
International Investments,
SL; Avianca Leasing, LLC;
Avianca Inc.; Turbo
Aviation Two, Limited.
About This Report
10, 11
About This Report
11
All of the reported material
Aspects is relevant to all of
the subsidiaries included in
this report.
Material aspects outside
11
the Organization: safety,
customer experience,
emissions, noise, waste
management, energy
efficiency, social
development, supplier
development and
responsible procurement
Stakeholders: customers
and external community
There are no restatements.
The 2014 report has no
significant changes from
the Scope and Aspect Boundaries.
Stakeholder Engagement
G4.24 Provide a list of stakeholder
groups engaged by the
organization.
G4.25 Report the basis for
identification and selection of
stakeholders with whom to
engage.
previous reporting periods
in scope, coverage or
evaluation methods.
Shareholders – Customers
– Employees – External
Community, including
suppliers and authorities
During the integration of
the different companies
that currently comprise
Avianca Holdings S.A., a
homologation of processes
was conducted on all
operational fronts,
including sustainability
management. This
verification identified the
stakeholders of the
different companies and
the actions that they had
been carrying out, based
on which one sole Social
Responsibility and
Sustainability Plan was
designed and approved for
the entire Organization; it
is now being socialized
with said stakeholder
groups and being
implemented in all of the
organization areas. This
Plan defines Avianca
Holdings’ corporate
commitment to its
strategic stakeholders. To
its customers, Avianca
Holdings is committed to
offer better service; to its
shareholders, Avianca
Holdings is committed to
G4.26 Report the organization’s
approach to stakeholder
engagement, including frequency
of engagement by type and by
stakeholder group, and an
indication of whether any of the
engagement was undertaken
specifically as part of the report
preparation process.
generate exceptional
value; to its employees,
Avianca Holdings is
committed to be the best
place to work; and to the
external community,
including suppliers and
authorities, Avianca
Holdings is committed to
contributing to their
wellbeing in the regions
served by the Avianca
Holdings S.A. subsidiaries.
The Organization has
different communications
channels with its
stakeholder groups, some
of them are institutional
means of communication
with the employees and
suppliers; the Net
Promoter Score (NPS)
study with customers that
enables knowing their level
of satisfaction with its
services; the Web page
that makes information
relating to the
organization’s
performance available to
the shareholders; the
corporate Web page that
gives information with
relevance for all
stakeholder groups and
shares different contact
options; and Avianca
Holdings’ corporate
presence in social
networks, institutional emails for generic accounts,
G4.27 Report key topics and
concerns that have been raised
through stakeholder engagement,
and how the organization has
responded to those key topics and
concerns, including through its
reporting. Report the stakeholder
groups that raised each of the key
topics and concerns.
Report Profile
G4.28 Reporting period for
information provided in the report.
G4.29 Date of most recent
previous report (if any).
G4.30 Reporting cycle (such as
annual, biennial).
G4.31 Provide the contact point for
questions regarding the report or
its contents.
G4.32 Report the "in accordance"
option the organization has chosen
and letter writing. The last
three offer more direct,
immediate contact with all
stakeholder groups. Each
one of these channels
offers different contact
frequencies with
stakeholder groups but
they are all permanently
available and once the
socialization and
implementation phase of
the Social Responsibility
and Sustainability Plan is
complete, some of these
channels will become
involved in the reporting
preparation process.
About This Report
11
2014
2013
Annual
Gilma Usuga,
Communications and
Corporate Affairs Director
gilma.usuga@avianca.com
About This Report
10
as well as the GRI methodology
(Core-Comprehensive). Report the
GRI Content Index for the chosen
option.
G4.33 Report the organization’s
policy and current practice with
regard to seeking external
assurance for the report.
Governance
G4.34 Report the governance
structure of the organization,
including committees of the
highest governance body. Identify
any Committees responsible for
decision-making on economic,
environmental and social impacts.
G4.39 Report whether the Chair of
the highest governance body is
also an executive officer (and, if so,
his or her function within the
organization’s management and
the reason for this arrangement).
G4.40 Report the nomination and
selection processes for the highest
governance body and its
committees, including:
- whether and how diversity is
considered.
- Whether and how independence
is considered.
- Whether and how expertise and
experience relating to economic,
environmental, and social topics
are considered.
- Whether and how stakeholders
(including shareholders) are
involved.
This report is not subject to
external assurance.
Avianca Holdings’
Commitment to Its
Shareholders
14 to 16
Avianca Holdings’
Commitment to Its
Shareholders
14
Avianca Holdings’
Commitment to Its
Shareholders
15
G4.41 Report processes for the
Avianca Holdings’
highest governance body to ensure Commitment to Its
conflicts of interest are avoided
Shareholders
and managed.
16
G4.52 Report the process for
determining remuneration. Report
whether remuneration consultants
are involved in determining
remuneration and whether they
are independent of management.
G4.55 Report the ratio of
percentage increase in annual total
compensation for the
organization’s highest-paid
individual in each country of
significant operations to the
median percentage increase in
annual total compensation for all
employees (excluding the highestpaid individual) in the same
country.
Ethics and Integrity
G4.56 Describe the organization’s
values, principles, standards and
norms of behavior such as codes of
conduct and codes of ethics.
Avianca Holdings’
Commitment to Its
Employees
56, 57
Avianca Holdings’
Commitment to Its
Employees
56, 57
Avianca Holdings’
Commitment to Its
Shareholders
12,13