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Bogotá, Colombia December 7, 2011

Avianca and Taca issue statement regarding miles account fraud

Avianca and Taca confirm that five people linked to Airline service suppliers were detained in an operation carried out by CTI agents from the Colombian Fiscalía (Public Prosecutor Office). The arrests occurred on Monday December 5, after an investigation by the Company following the detection of suspicious events in the first quarter of 2011.

The individuals are being processed for non consensual transfer of assets (fraudulent accumulation and subsequent miles redemption), using computer manipulation.

Avianca and Taca hereby notifies that:

• The fraud only affected 0.01% of frequent flyer accounts.
• Program members affected by the unauthorized miles fraud have been fully reimbursed for the total amount of miles taken.
• Following the detection of computer manipulation, that affected both the Airline and program members, further program controls were introduced to guarantee account security.

Avianca and Taca recommend that loyalty program members adopt their own security measures to keep their account passwords safe. To ensure they receive notifications members should also make sure their email addresses are updated.

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