For Avianca, Viva Integration is Not a Done Deal and Changing Conditions Cast Doubt

Avianca stated that the integration with Viva is not yet closed, and that the conditions are not the same as when both companies requested the start of the process, subtly opening the door to not continuing with it.

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In a statement, the company said that «Given the operational, financial, and technical implications of the Aerocivil decision, Avianca will promptly study the resolution and implications of the measures set forth by the authority to determine their feasibility.»

It also highlights that «Viva Air no longer has the same capabilities –route network, aircraft, employees- it had before the temporary suspension of its operations, a factor that must be analyzed in detail to determine the relevance of the conditions established by the Civil Aeronautics.»

Furthermore, Avianca states that the resolution is not final, because «According to the Civil Aeronautics, appeals and reconsideration remedies are allowed not only for the intervening parties but also for third parties recognized by the authority in the process (LATAM, Wingo, Ultra Air, and Aerolíneas Argentinas),» and therefore «the approval with conditions is not yet final.»

«Until that happens, Avianca is not authorized to intervene in the operational or financial situation of Viva airline, nor can it resolve, as required by the resolution, the situation of the users affected by the low-cost,» said the company, which will, however, continue with the assistance plans for Viva travelers by offering free tickets until March 24th and differential rates afterward.

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Lastly, Avianca increases pressure on Aerocivil by stating that «The authority’s promptness will be essential for there to be a solution that safeguards the existence of what remains of the low-cost pioneer in Colombia today.»

As we indicated, the situation is diametrically opposed to what was happening in August 2022, and the series of concessions that the aeronautical authority demands of Avianca are probably too many for the operator today, which will have to evaluate whether it makes sense to give up operating slots, rates, and frequencies to save a company that, in practice, no longer exists.

Avianca’s statement, far from being a reaffirmation of the initial idea of integrating Viva, seems to be the beginning of a graceful exit from an agreement that is no longer convenient today.