End of the Novela: Avianca Cancels Viva Integration
In a statement released on the morning of Saturday, May 13, Avianca affirmed that the anticipated Viva integration will not proceed.
As we hinted in previous articles, market conditions had taken a dramatic turn, with Avianca visibly losing interest in the proposed merger.
«Despite Avianca’s repeated attempts to preserve Viva and protect consumers, employment, and regional connectivity, the transaction conditions set by Aerocivil would not only render Viva financially and operationally unviable, but could also risk Avianca’s stability and the sector’s,» the company stated in the release.
«Upon scrutinizing Aerocivil’s Resolution 873 of 2023, and confirming that Aerocivil’s conditions make Viva’s recovery impossible and could even affect Avianca’s stability, the Company was unfortunately compelled to abandon the integration process.»
Avianca’s released document emphasizes that the conditions imposed by the aviation authority do not consider Viva’s reality. The airport slot allocation scheme in Bogota, albeit adjusted by Aerocivil, entails a flight volume that, according to the company, renders the operation unfeasible.
Furthermore, Avianca addressed the competitors’ role in the market. After being included as third parties in the integration process, they raised objections that added administrative steps and hence, time – a resource Viva couldn’t afford.
«Despite this regrettable outcome – where other airlines in the market played a detrimental role, strengthening their competitive position by delaying the authorities’ decisions – Avianca intends to remain an ally of the Colombians.»
This is a developing story.
Corresponsal de Prensa de Colombia, Centroamérica y el Caribe. Escribo sobre aviones y música, creo contenido digital en redes y capturo cuanto avión se me cruce en el cielo o en la tierra.
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