Colombia: JetSMART Confirms Intent to Acquire Viva Air
The Latin American market continues to be impacted by the pandemic, and after the acquisition of Viva by Avianca was bogged down by the refusal of the Colombian Civil Aeronautics Authority, JetSMART has expressed its intention to acquire 100% of Viva Air‘s capital.
In a press release, JetSMART confirmed it has the resources, capacity, and experience to negotiate and close an acquisition in an agile manner. The airline highlighted its rapid growth in Latin America and the Caribbean with the backing of Indigo Partners, a shareholder in Frontier Airlines in the United States and Wizz Air in Europe.
According to Estuardo Ortiz, CEO of JetSMART, «We believe that a transaction between JetSMART and Viva Air will allow us to maintain the ultra-low-cost model in Colombia and offer more routes at lower prices. We have a long-term vision to expand in South America and we are in a position to continue to invest in our growth. Our alternative will benefit users, strengthen free competition in the sector, and promote tourism and connectivity in the country.»
JetSMART already has domestic operations in Chile, Argentina, and Peru, and filed an application with Colombian authorities last year to develop a subsidiary in Colombia. The application was put on hold until the scope of American Airlines’ entry into JetSMART’s capital is clarified.
With the purchase of Viva, JetSMART would secure its entry into one of the most competitive markets in the region, potentially with greater support from a government administration that did not look favorably on Avianca acquiring the troubled carrier.
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