Saturday, June 10, 2023

Avianca ends integration with Viva

Through a statement released on the morning of Saturday 13 May, Avianca confirmed that it would not be pursuing the integration of Viva.

As we anticipated in previous articles, market conditions had changed drastically and Avianca had shown clear signs of losing interest in the merger.

Aerocivil makes minor changes to the conditions and Avianca’s desire to revive Viva is becoming less and less

“Despite the fact that Avianca has repeatedly sought to protect Viva’s existence and thereby protect consumers, employment and regional connectivity, unfortunately the terms of the transaction as defined by Aerocivil will not only give Viva financial and operational to become a financially viable airline, otherwise they could put the stability of Avianca and the sector at risk,” the company said in the statement.

“After studying Aerocivil’s 2023 Proposal 873 in detail and verifying that Aerocivil’s position makes Viva’s recovery impossible and may also affect the stability of Avianca, the company is unfortunately forced to withdraw from the integration.” I was forced to,” he said.

The document released by Avianca highlights that the conditions imposed by the aeronautical authority did not consider Viva’s reality as the plan for the transfer of airport slots in Bogotá, although it was accommodated by Aerocivil, meant There are many flights, which, according to the company, make the operation unfeasible.

Avianca also moves on to the role of competitors in the market, raising objections after being included as third parties involved in the integration process which adds administrative steps, and therefore, time that Viva did not have.

“Despite this unfortunate result – in which other airlines in the market played a detrimental role, delaying the decisions of the Authority to improve its competitive position in the market – Avianca intends to remain an ally of the Colombian people”.

World Nation News Desk
World Nation News Desk
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