The skyrocketing dollar, high fuel prices and inflation, which has raised its general operating costs, are the main reasons why Viva, the low-cost airline that managed to move 8.1 million passengers in Colombia and its connections, is literally stranded on the ground and with thousands of users waiting in national and regional airports for someone to give them news of the tickets they have already paid for.
In general, the entire aeronautical industry feels the increase in fuel prices, which have risen at levels close to 75%. In the case of devaluation, Viva argues that 75 percent of her sales are made in pesos, but close to 70 percent of her costs are paid in dollars: “There is a very complex currency mismatch, with a very big”, said just two weeks ago, in an interview with Portafolio, Félix Antelo, former president of Viva.
And although these factors hit the entire sector equally, airlines in crisis like Viva feel the squeeze harder. For this reason, the airline was betting everything on the integration with Avianca as the last salvation table.
In its statement on Monday, minutes before closing its operations without prior notice to passengers, Viva stated that Aerocivil must manifest itself as soon as possible, he said, “the Colombian government will have privileged the interests of airlines managed from Argentina, Chile, Panama and the United States, about Viva itself”.
“As has been said on countless occasions since the beginning of this process, an immediate decision by Aerocivil that allows Viva to become part of a larger, stronger or better capitalized group of airlines is the only way I can live.” can keep flying,” he warns.
For its part, Avianca reiterated “its total willingness to seek, together with the National Government, viable and urgent alternatives that facilitate objective scenarios to be part of the solution.”
This year, Viva had had to leave several of its planes on the ground, had not paid the operating fees because their owners had already had to suspend 17 weekly flights that left Cali for Cartagena, Santa Marta and San Andrés.
A radically different picture at the end of 2021, when it transported 6.5 million passengers, made more than 40,000 flights and reported 85% occupancy on its aircraft.
“2021 has undoubtedly been a very positive year for the company. We have been pioneers in the safe reactivation, demonstrating to our passengers that it is possible to fly with all the biosafety protocols on a wide network of routes, guaranteeing the punctuality of their flights and, above all, at low prices. Our figures ratify the confidence and preference of Colombian travelers for Viva”, stated Antelo in November 2021. At that time, the company reported that it had begun to overcome the negative effects that the pandemic had on the entire airline industry and on tourism.
Last year, however, the numbers were out of line for the market and Viva desperately went looking for a partner. In November, the Civil Aeronautics notified that it had not approved the integration with Avianca, arguing the possibility of affecting competition in the Colombian air market.
Last January, a nullity was declared that was under review, according to Aerocivil. But the weeks went by and a new decision by the regulatory entity, to listen to the positions of other market operators that could be affected by the integration, was the prelude to Viva’s decision to close.
The airline had been closing operations from various points and had accepted a special insolvency process to achieve its permanence in the market. Later, the airlines JetSmart and Latam showed interest in Viva.
WRITING ELTIEMPO.COM
