A few hours before the inauguration of the new Colombian government led by Gustavo Petro, Avianca formalized the request to the Civil Aeronautics Administration to rescue Viva under the legal process of «Company in Crisis», due to the drastic deterioration of the financial situation of the low-cost operator in the last quarter.
Avianca, which in April had signed the integration with Viva and, after partnering with GOL in May, the incorporation of the three entities to the Abra group, stated that the delicate economic situation of Viva merits and imposes resorting to the rescue procedure.
«In view of the information available in the market about the delicate financial situation that Viva is going through, this company and Avianca requested before the Civil Aeronautics of Colombia authorization to integrate, with the objective of making 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», states the statement issued by Avianca.
For the operator, «it is important to note that it is market conditions (jet fuel prices, inflation and dollar appreciation) that 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 carrier was different and Viva estimated that it had the necessary finances to compete normally.»
Adrian Neuhauser, President and CEO of Avianca stated: «The integration request with Viva seeks to fight for its survival in the market, as well as to maintain the competitiveness it has built during 10 years of operation.»
«Even with the complex panorama that aviation is experiencing in the world on account of rising fuel prices, as well as historic inflation in the region, Avianca has a solid financial position, evident in the recent announcements, which would allow it to achieve synergies and take advantage of economies of scale with Viva, provide financial support and participate in its management. We are confident that the Aeronautical Authority can study this request quickly, given its relevance for the country,» he added.
For his part, the CEO of Viva Colombia, Felix Antelo said that «we are going through moments of great uncertainty in the airline industry, the most difficult in the last 20 years after Covid, and it is precisely within the framework of this challenging moment, that we presented to the Aerocivil, together with Avianca, the request for approval of integration to become part of the ABRA Business Group, which would be a support for the continuity and development of the ‘ Super Low Cost’ that has brought so many benefits to travelers in the region and in which Viva is a leader.
«The quick approval of this integration is vital to guarantee the existence and development of our company in the future and to continue offering the best connectivity to travelers, as we have already done with 31 million passengers throughout our history and want to continue doing,» he added.
Antelo further stated that «While the homologation procedures are being carried out, our operations remain unchanged, and maintain the quality, safety, punctuality and performance for which we are renowned, doing what we do best: making more passengers fly more.»
