The two most important airlines in the air market in Colombia, Avianca and Viva Air announced that they will be part of the same parent company.
(Lea: Hamak Hotels expects to invest US$35 million in Colombia).
In the early hours of Friday, April 29, the majority shareholders of both companies announced that Viva Air would become part of Avianca Group International Limited. For his part, Declan Ryan, founding partner of Viva, would join the board of directors of the new group.
“The eventual incorporation of the control rights of Viva’s operations in Colombia and Peru to the Avianca Group holding will be subject to requesting and obtaining all the necessary regulatory authorizations in the countries that are required.“, they explained through a statement.
In other words, until the pertinent authorizations are obtained, Viva in Colombia and Peru will not be part of the same holding company. That is, the operations of this airline will continue to compete with those that are part of the Avianca Group.
“As long as the authorizations are not achieved, the way in which users, suppliers, employees and entities relate to the different airlines will remain the same, maintaining their internal and external processes, as well as their own sales channels and their services. customer service as they are known today,” they pointed out.
According to the businessmen, this union would benefit the clients to have costs more efficient and lower prices. Also, the possibility of promoting direct connectivity between destinations.
(Lea: Tecnoglass: “companies have to lose fear of going public”).
“This is an important day for Viva as it is the perfect setting to continue with our growth and expansion strategy, maintaining the flag of air inclusion and strengthening our company. In addition, if in the future the authorities approve the management of both groups in the same holding company, it will encourage the air transport market to continue growing, promoting low rates for users and a good service with the best punctuality, giving everyone the opportunity to fly to many destinations around the world,” said Declan Ryan.
BioMig is at counter 130 in the Avianca check-in area.
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MARKET SHARES
According to data from 2021 from the Civil Aeronautics, under the transaction the new aeronautical holding company that arises will have a 56.2 percent market share in the national passenger market, since while Avianca transported more than 7.76 million passengers last year, that is, 34.5 percent of the total, Viva Air transported more than 4.88 million passengers in Colombia. travelers, for a share of 21.7 percent.
For its part, according to the same statistics of the aeronautical authority, the matrix that is created will have a 24.3 percent share of the international marketl, since Avianca, with more than 1.6 million travelers, had a 20 percent share of this market in 2021, while Viva mobilized 4.3 percent of travelers last year, transporting 347,043 persons.
(Besides: Justo & Bueno has an accumulated deficit that reaches $135,000 million).
Avianca recently emerged from Chapter 11, and undertook its strategy ‘Avianca for everyone’ that combines the experience of its traditional model of more than 100 years with ‘low-cost’ elements. For its part, Viva Air has boosted its expansion with the launch of different national and international routes.
BRIEFCASE
