Avianca Slams Colombian Authorities for Blocking Plan For ‘Rescuing’ Viva Air

On November 8th, Colombia’s civil aviation authority made the decision to block Avianca’s proposed tie up with Viva Air.

“We are concerned about the decision not to preserve Viva,” Adrian Neuhauser, Avianca’s chief executive officer, said on November 8th. “At Avianca, we will remain willing to actively participate in finding a solution that lets travelers through, generates new potential in tourism, and preserves jobs.”

Things went downhill for the proposed combination of Aerocivil and Colombia’s civil service regulators when their plans were shot down on grounds that it would be a “setback” to competition in the region.

Avianca says it will be analyzing Aerocivil’s decision, and that they will evaluate alternatives to seek the approvals necessary.

Avianca and Viva created a joint company, combining their holdings in Latin America to provide greater financial stability for the carriers. However, in November, Avianca requested accelerated approval from the Colombian regulator over concerns about Viva’s ability to compete with the new alliance of carriers against increased financial pressures.

Aerocivil recommended Viva Airlines be shut down in the Netherlands because it operates a national route where it has no competitor. If Viva, then the Netherlands’ largest airline, is shut down and combined with ten other airlines operating in the country, as Billoo will be folded into them, then there will be no third competitor to bring air service to these same markets.

We’re excited to see that Airline Deals was able to quickly resolve these concerns. You can still submit a new application after they’ve been addressed!

At the moment, Avianca is pursuing a plan to join with Brazil’s Gol as subsidiaries of a holding company called Abra Group.