This Tuesday Latam Airlines Colombiasubsidiary of Latam Airlines Group SAexpressed interest in starting negotiations to acquire Long live Air Colombia (Fast Colombia SAS).
(Context: The struggle between Avianca and JetSmart to buy the airline Viva)
In a written communication to the president of Viva Air Colombia and Castlesouth Limited, the company informed that the operation is subject to a financial analysis, which it has the capacity to carry out expeditiously, to a possible agreement between the parties and the corresponding regulatory approvals.
(Do not stop reading: Viva Air will restructure its debts to achieve its permanence in the market)
“The Colombian subsidiary of the Latam group is prepared and has the capacity to strengthen its operations in the country. Thus, an eventual acquisition of Viva Air Colombia becomes an opportunity for growth offering Colombian consumers the best value offer in the local market in terms of service, and the country new alternatives to strengthen its connectivity and the development of tourism», the airline’s statement highlighted.
In the bulletin, he also adds that the airline has been operating in the Colombian market for 11 years, and throughout its history it has been constantly concerned about investing in the Colombian market.
«For this reason cWe believe that this potential operation would be the best option to strengthen the conditions of free competitionas well as offer the necessary support that will allow responding to the financial situation of Viva Air Colombia and its creditors, which will result in the strengthening of the Colombian airline industry”, he points out.
According to data published by AerocivilAs of December 2022, Viva Air Colombia has a fleet of 19 family aircraft airbus320 and transported 8.1 million passengers to, from and within Colombia.
The first fight was between Avianca and JetSmart
JetSmart last week expressed interest in acquiring 100 percent of the airline Viva. After this announcement, Avianca He referred to the proposal, which he described as unviable and as a distraction in the integration process that is being analyzed in the local market.
(Read also: JetSmart wants to buy all the shares of Viva Air: this is the proposal)
«Avianca and its shareholders considering that JetSmart’s declaration of interest has the sole objective of using a proposal, clearly unfeasible, to create a distraction from the integration request of Viva and Avianca,» said Avianca as soon as it learned of the interest of the Chilean ultra low cost airline.
In that same statement, Avianca also noted that JetSmart’s declaration of interest It 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 required the same approvals that Avianca needs for integration with Viva.»
Meanwhile, the airline Viva, due to the crisis, began to close some operations from the city of Cali and stopped offering services to beach destinations.
In addition, Félix Antelo, president of Viva, argued 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.
It should be noted that JetSmart operates in Colombia from the airports of Bogotá, Cali and Medellínwith flights to Santiago, the Chilean capital.
ELTIEMPO.COM
