The agreement between Avianca and Viva revolutionizes the aviation market in the Americas
This transaction will strengthen a sector that has gone through the most complex crisis in its history and will give better opportunities to the more than 13,000 employees who are part of both airlines
The majority shareholders of both airlines jointly announce that Viva would become part of the same holding company as Avianca Group International Limited (Avianca Group), and that Declan Ryan, founding partner of Viva, would join the board of directors of the new group, contributing all its expertise in the world of aviation.
The eventual incorporation of the control rights of Viva's operations in Colombia and Peru to the Avianca Group holding will be subject to requesting and obtaining all the necessary regulatory authorizations in the countries that are required.
This means that, until the companies request and obtain said authorizations, the control -and the administration- of Viva in Colombia and Peru will not be part of the same holding company, and to that extent Viva's operations will continue to compete with the airlines. that are part of the Avianca Group in all the countries where both groups have a presence. Likewise, while the authorizations are not achieved, the way in which users, suppliers, employees and entities relate to the different airlines will remain the same, maintaining their internal and external processes, as well as their own sales channels and services. customer service as they are known today.
In the future, subject to the necessary procedures being completed and the competent authorities authorizing it, the shareholders consider that both groups of airlines could be part of the same holding company, maintaining their respective brands and strategies. “This new and strong group of airlines would benefit customers by having a more efficient cost structure that would allow them to offer even lower prices, as well as a route network that would promote direct connectivity between destinations, a strong loyalty program and a service friendly and efficient according to the needs of today's traveler. In addition, it would give Colombia and Latin America a new and stronger competitor that is sustainable over time, encouraging both players to remain relevant in the Latin American market”, commented Roberto Kriete,
The decision to unify the economic rights of both groups in the same holding company is made after the greatest crisis in the history of the airline industry -generated by Covid-19- which forced airlines to adapt to new ways of flying and to strengthen its operations to meet future challenges. Under this scenario, countries around the world have seen the need to create solid and sustainable airline companies that guarantee and strengthen national and international air connectivity and, at the same time, generate value for the consumer.
“This is an important day for Viva as it is the perfect setting to continue with our growth and expansion strategy, maintaining the flag of air inclusion and strengthening our company. In addition, if in the future the authorities approve the management of both groups in the same holding company, it will encourage the air transport market to continue growing, promoting low rates for users and a good service with the best punctuality, giving everyone the opportunity to fly to many destinations around the world. Likewise, it will be a source of qualified employment generation, giving more and better job opportunities to current and future collaborators, as well as continuing to positively impact the connectivity of Colombia, the region and the economic development of the country,” added Declan Ryan, founding partner. of alive.