Avianca’s announcement to withdraw from an integration with Viva Air seems to be the end of a story that has affected the Colombian air sector. The decision contrasts with the announcement that, a year ago, the companies made about the creation of Grupo Abra, which raised an alliance to be one of the leaders in air transport in Latin America.
(Also read: Viva Air says goodbye: “The company no longer has the capacity to operate”).
Avianca said that it was nine months since the integration application process began and detailed study of resolution 873 of 2023 of the Aerocivil. According to the airline, it was a process that had delays and that, in addition, put the low-cost flight sector at risk.
“Avianca repeatedly sought to safeguard the existence of Viva and thus protect consumers, employment and regional connectivity, unfortunately the conditions for transactions defined by Aerocivil not only would not allow Viva to be a financially and operationally viable airline,” Avianca explained. .
In the middle of the whole process, on February 27, 2023Viva Air’s crisis was more than evident, the company ceased its operations immediately, leaving its passengers on the ground, along with the planes and their workers in the middle, something that it had already announced since November 2022, when it asked that the integration process was given.
The desperate scenes of travelers at the country’s airports, in Peru and Argentina added to the anxiety of its more than 1,250 employees due to the company’s decision to fire 260 pilots and 460 flight attendants, therefore, through the Colombian Association of Civil Aviators (Acdac), they asked the Government to intervene so that they would take the necessary measures.
Viva even tried to save even Jetsmart, a new player in the Chilean low-cost sector that entered Colombia in March, also opted for Ultra, but neither of the two operations prospered.
Current situation of Viva Air passengers at the José María Córdova airport in Rionegro, during the second day of the suspension of operations.
Jaiver Nieto Álvarez/El Tiempo
Puts Avianca at risk
Adrian Neuhauser, CEO of Avianca
Therefore, Avianca has indicated that it will extend until May 31 the protection of users affected by the cessation of operations of Viva, which According to official figures, they exceed 500,000.
“Despite Avianca’s willingness to return more than 75% of the Viva slots in El Dorado -and more than 72% of the Viva slots in “premium” slots-, the authority demanded the return of a number of slots Clean such that it would not allow Viva to base a single aircraft at the country’s main airport efficiently. the only operator,” the company explained.
Adrian Neuhauser, president and CEO of Avianca, explained that “since the start of the integration request we have been respectful of the process, but it is our responsibility to protect Avianca.”
According to Neuhauser, the company made a concrete proposal to save Viva, the company has mobilized more than 160,000 people for free (compared to the less than 10,000 that all other airlines in the sector have rescued as a whole) and It has served critical destinations such as San Andrés, Medellín, Riohacha or Buenos Aires, among many others, with additional flights.
“In this, it maintains its conviction of being a key player for connectivity and avoiding a deeper crisis, and will continue to protect affected Viva and Ultra users until May 31,” it announced.
For the manager, the integration request with Viva sought to fight for its survival in the market, as well as to maintain the competitiveness that it has built during 10 years of operation, but “unfortunately the conditions of this resolution, which is already the firm decision , the rescue of Viva impossible by making it not only unfeasible as an airline, but, realizing the integration under the conditions imposed by Aerocivil, would put the stability of Avianca and the connectivity of Colombia at risk.”
Are there exits?
The airlines Ultra Air and Viva Air live in a difficult situation in Colombia.
Jaiver Nieto Alvarez/ETCE
The director of Civil Aeronautics, Sergio París Mendoza, assured that around this issue there have been too many issues and visions.
“We have reached a decision that weighs and compensates for the decisions of those who were interested in this situation. The passengers are not abandoned. Competition is allowing spaces for airlines other than the integrated entity to operate and have access to El Dorado Airport and, finally, for the integration that allows sustainability for Viva Air’s return to the market,” he said.
The other possibility is that due to the difficult economic situation they registered, the Superintendency of Transportation managed to get the Superintendency of Companies to admit the airlines Viva Air and Ultra Air in business reorganization.
As a result of this request, Viva Air delivered the information established by law and is currently under study. Meanwhile, Ultra Air has a deadline until next May 24 to submit the required documentation.
Once they are admitted, each company has 10 days to update the inventory and the designated promoter, either the legal representative or an assistant on the list, has two months to present the qualification and credit graduation projects.
Then a process of almost 25 days arises and in the case of not confirming the reorganization agreement, the reorganization process is completed and the opening of the judicial liquidation process is decreed.
More news
More red at the traffic light of the economy at the start of 2023
Avianca says no to Aerocivil: reasons why it abandoned its integration with Viva
