Avianca and Viva request their integration with the Civil Aeronautics of Colombia - News - IFSMAG.com
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Avianca and Viva request their integration with the Civil Aeronautics of Colombia



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Last April, Avianca's majority shareholders signed an agreement to become part of the same business group, unifying economic rights. In turn, they acquired 100% of the economic rights of Viva in Colombia and Peru, without this implying control or management. A month later, following Avianca's agreement with Gol, the creation of Grupo Abra was announced, which would be one of the leaders in air transportation in Latin America and would group the investments made in the economic rights of Viva and a loan convertible into a minority position in Sky Airline.

Today, and in view of the information available in the market regarding the delicate financial situation that Viva is going through, this company and Avianca requested authorization from the Colombian Civil Aeronautics Authority to integrate, in order to make the permanence of the low-cost airline viable for the benefit of passengers, connectivity in Colombia and Peru, as well as to safeguard jobs that directly and indirectly depend on Viva.

Given the relevance and urgency of this integration request for the country's competitiveness and air connectivity, Avianca has held conversations in recent days with representatives of the new government, explaining the reasons for this request, which was formalized once the new government took office.

It is important to point out that market conditions (jet fuel prices, inflation and the appreciation of the dollar) have forced this request to the Aerocivil to be accelerated and become of the utmost urgency, since in the first quarter of the year, when the operation was negotiated between Avianca and Viva shareholders, the financial situation of the low-cost company was different and Viva estimated that it had the necessary finances to compete normally.

With the integration, Viva would also become part of one of the most relevant Latin American airline groups and efficiencies and synergies would materialize that could benefit the rescue of the low-cost pioneer in Colombia. In addition, this strong new airline group will allow for a more efficient cost structure, a route network that promotes direct connectivity between destinations, a strong loyalty program, and a friendly and efficient service that meets the needs of today's traveler.

During this integration request process, Avianca's flight offerings, service, operational discipline and other processes will continue as normal. Likewise, the way in which suppliers, employees and entities relate to Avianca will remain the same, maintaining the company's own sales and communication channels, as they are known today.

The company will share the progress of this request once it receives information from the Authority.

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