Colombia: Aerocivil approves Viva – Avianca integration, with conditions


Finally, and after months of process, the Colombian aeronautical authorityAerocivilapproved the integration request of Viva and Avianca, which would allow the Low Cost to keep jobs and resume its flights.

See also: Viva suspends operations

Although the conditions under which Viva is receiving confirmation of approval are not the best or what was expected when the application was filed, the move will have an impact on all Colombian commercial aviation.

The company had indicated that it was continuing to negotiate with its creditors despite the cessation of operations, and Avianca‘s cash flow could allow the return of Viva‘s regular flights in the short term.

This measure will bring relief to the passengers affected by its closure, which had been estimated at half a million, and to the operators that enabled special flights and seats free of charge.

- Advertisement -

The aeronautical authority, however, did not grant approval without conditions: as expected, it had to meet the demands of the operators that submitted comments to ensure that the integration does not generate interference in competition.

Therefore, Aerocivil imposed that Viva-Avianca return frequencies on the Bogotá-Buenos Aires route, operating slots to be released at the Colombian capital’s airport, Viva tickets purchased to be honored, Viva’s low-cost scheme to be maintained and that a fare limit be established on routes where the integrated company has an effective operating monopoly.

Colombia aprueba viva avianca Colombia aprueba viva avianca Colombia aprueba viva avianca

With Viva out of the market, will Avianca pursue the integration plan?

The question, however, remains: does it make sense for Avianca to inject capital into Viva and integrate it, or will it prefer to wait for its definitive collapse and acquire -if it can and wants to- the assets that retain value at liquidation price?

The answer does not seem simple: although Avianca has always maintained that the only solution for Viva was integration -although there are industry players who openly state that Avianca already controlled Viva since 2022-, letting the company die will allow it to keep airport slots that it had agreed to relinquish to take control of the low-cost carrier.

Today it could keep those coveted operating slots and routes it was willing to sacrifice because there is no airline to save, in the reality of daily operations. On Monday, March 13, JetSMART CEO Estuardo Ortiz said that the South American holding company, which is part of Indigo Partners, had abandoned its intention to buy it.

See Also: Avianca or Liquidation: VIVA Deal is Almost Impossible, JetSMART CEO Says

Therefore, Viva‘s future is still uncertain: it remains to be seen how the market reacts to the approval and what are the next steps of the low-cost carrier in Colombia.

Pablo Díaz (diazpez)
Pablo Díaz (diazpez)
Director Editorial de Aviacionline. Ante todo, data-driven.


Por favor escribí tu comentario
Por favor escribí tu nombre

Latest News

China Eastern Airlines Shows Buenos Aires as First South American Destination in Expansion Plan

Last week, China Eastern Airlines unveiled its growth plan for the next ten years in Shanghai during the announcement...

Aerolíneas Argentinas restarts flights between Trelew and Ushuaia

Aerolíneas Argentinas started flights between Trelew and Ushuaia on Tuesday (3). The company will operate this route until April...

LATAM resumes flights between Santiago de Chile and Cusco

LATAM resumed flights between Santiago and Cusco on October 1st. Operations had been suspended since last February. See also: Flybondi to...

GOL began flights between Sao Paulo and Buenos Aires Ezeiza

GOL began flying between Sao Paulo and Buenos Aires Ezeiza on Tuesday, October 3rd. The Brazilian airline will operate...
- Advertisement -

Japan Airlines Unveils Luxurious Airbus A350-1000 Interiors

Japan Airlines has unveiled the seat map and details of the new cabins of its Airbus A350-1000, becoming the...

KLM Announces 157 Destinations for Winter 2023-2024

KLM has unveiled its schedule for the 2023-2024 winter season: the network will include 157 destinations, 92 in Europe...

You May Also LikeCheck It Out!
Recommended For You