JetSmart expressed interest in acquiring 100 percent of the airline Viva. After this announcement, Avianca referred to the proposal, which it described as unfeasible and as a distraction in the integration process that is being analyzed in the local market.
(In context: JetSmart wants to buy all the shares of Viva Air: this is the proposal)
Its sole objective is to use a proposal, clearly unfeasible, to generate a distraction
“Avianca and its shareholders consider that JetSmart’s declaration of interest has the sole purpose of using a proposal, clearly unfeasible, to generate a distraction to the request for the integration of Viva and Avianca,” Avianca said.
According to the company, “neither Avianca nor its shareholders have received offers to transfer their economic participation in Viva.”
In the community, he also warned that JetSmart’s declaration of interest is not a real option to solve the Viva crisis since “both JetSmart and its second largest shareholder – American Airlines – operate in the Colombian market and therefore any transaction would require the same approvals that Avianca needs for the integration with Viva”.
(You may be interested in: Viva air’s letters in the face of uncertainty due to eventual integration with Avianca)
Avianca added that the permitting process, which in the case of Avianca and Viva began six months ago, could not even start until after there is an agreement for JetSmart to acquire Viva.
According to Avianca, this transaction could be subject, not only to approvals in Colombia, but also in the other markets in which Viva participates together with JetSmart and/or American Airlines, including countries such as Peru, Argentina, Chile and the United States.
We believe that a transaction between JetSmart and Viva Air will allow the ultra-low-cost model to be maintained in Colombia
Avianca reiterated its intention to integrate with Viva so that they are part of the same business group. However, the Civil Aeronautics, in January, confirmed the invalidity of the process, but it will continue under study, which is being carried out with a special procedure.
The Viva airline, due to the crisis, began to close some operations from the city of Cali and stopped offering services to beach destinations.
(We recommend: Viva closes routes due to the airline’s economic crisis)
In addition, Félix Antelo, president of Viva, told the newspaper Portafolio that the rise in the dollar, fuel prices and high inflation have hit the company’s finances and the entire aviation sector in Colombia and the world hard. .
On the other hand, JetSmart is a Chilean company that is part of the airline portfolio of Indigo Partners, an investment fund that controls five other airlines and is recognized for its leadership in this segment of the global airline industry.
(Also: They confirm the nullity of the integration process between Avianca and Viva: what’s next?)
“We believe that a transaction between JetSmart and Viva Air will allow the ultra-low-cost model to be maintained in Colombia and that will allow us to continue offering more routes at lower prices,” said Estuardo Ortíz, CEO of JetSmart, about the proposal to buy Viva.
JetSmart operates in Colombia from the airports of Bogotá, Cali and Medellín, with flights to Santiago, the Chilean capital.
TIME
With Portfolio Information