After JetSMART announced its intention to purchase 100% of Viva Air’s shares, Avianca quickly responded. The group, which has already made a multi-million-dollar investment and is waiting for approval from Colombian authorities for the integration, issued a statement harshly questioning the proposal from Indigo Partners’ subsidiary.
Avianca and its shareholders have not received offers to transfer their economic stake in Viva, the company indicated, casting doubt on the holding’s true intentions.
Avianca also stated that JetSMART’s declaration of interest is not a realistic option to solve the crisis at Viva. Both JetSMART and its second largest shareholder, American Airlines, operate in the Colombian market and therefore any transaction would require the same approvals as Avianca needs for its integration with Viva.
The company added that the process of obtaining permits, which in the case of Avianca and Viva began six months ago, could not even start until there was an agreement for JetSMART to acquire Viva. Additionally, this transaction could be subject not only to approvals in Colombia, but also in other markets where Viva participates along with JetSMART and/or American Airlines, including countries such as Peru, Argentina, Chile, and the United States.
Therefore, Avianca and its shareholders consider that JetSMART’s declaration of interest only aims to use an obviously unviable proposal to generate a distraction from the request for the integration of Viva and Avianca, the statement concluded.
The group’s statement closed by saying that Avianca and its shareholders reiterate their intention for Avianca and Viva to be part of the same business group remains intact, and they have confidence in the timely response from the authority to prioritize the salvation of Viva, the connectivity of the regions of Colombia, the provision of essential air transportation service, and the preservation of formal jobs.
