Viva Air also requested a US$50 million loan from the Colombian government.

Felix Antelo, president and CEO of Viva Air Group, in April 2020 revealed that the airline was in negotiations with the Colombian government to be granted a bridge loan of nearly 50 million dollars, with a term that can be between five and six years and a grace period of between two and three years, due to the liquidity problem presented by the company due to the impossibility of flying.

The airline at the time argued that due to the situation of Covid-19, the conversations with the Government sought to guarantee the sustainability of the company, but also of the different actors in the air industry. Therefore, in view of the announcement of a possible credit of US$370 million for Avianca, the question that has been asked by economic sectors is: Will Viva Air be lent as well?

“In our particular case and on this it is very important to emphasize, unlike what may be happening with other airlines in Colombia and the world, we are not asking or requiring subsidies or financial bailouts; what we are seeking is a bridge loan with a reasonable term, which may be between five and six years, thus, we will guarantee the sustainability of the business, the activation of operations once the emergency ends, as well as the air inclusion in Colombia,” Antelo clarified on that occasion.

From the moment the crisis in Colombia began to worsen due to the pandemic, which caused the closure of the skies throughout the national territory, the airlines, as part of one of the most affected sectors, began conversations with the National Government, which expressed its openness and willingness to analyze, design mechanisms and solutions to inject liquidity, as announced for Avianca.

In April, Viva Air made a call to “understand this debate not as a possible lifeline for a single airline, but as support for an industry where different competitors have arrived, allowing all Colombians to find in air transport an affordable possibility to mobilize and connect with destinations.

The airline’s request has made news again after the National Government announced that the Emergency Mitigation Fund Administration Committee (FOME) authorized the nation’s participation in the restructuring of Avianca, which has also generated criticism from various political and economic sectors.

By Katherine Leal – RCN Radio

Photo: Primx28 / Wikimedia