Confirmed: Viva to become part of Avianca’s holding
As reported by Aviación al Día this Thursday, the majority shareholders of both airlines jointly announced early Friday morning 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, bringing all his expertise in the world of aviation.
→ Viva requests authorization to operate 10 new international and 17 domestic routes.
The eventual incorporation of the control rights of Viva’s operations in Colombia and Peru into the Avianca Group’s holding company will be subject to requesting and obtaining all necessary regulatory authorizations in the required countries.
This means that, until the companies apply for and obtain such authorizations, the control – and management – 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 countries where both groups have a presence. Likewise, until the authorizations are obtained, 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 customer services as they are known today.
In the future, subject to the necessary formalities being completed and authorized by the competent authorities, the shareholders believe that both airline groups could become part of the same holding company, maintaining their respective brands and strategies.
→ Avianca starts three international routes from Cartagena.
“This new and solid airline group would benefit customers by having a more efficient cost structure that would allow us to offer even lower prices, in addition to a route network that would promote direct connectivity between destinations, a strong loyalty program and a friendly and efficient service in line with the needs of today’s traveler. In addition, it would give Colombia and Latin America a new and strengthened competitor that is sustainable over time, making both players continue to be relevant in the Latin American market,” commented Roberto Kriete, Avianca’s main shareholder and Chairman of the Board of Directors.
The decision to unify the economic rights of both groups in a single holding company comes after the biggest crisis in the history of the airline industry -generated by Covid-19- which forced airlines to adapt to new ways of flying and strengthen their operations to face future challenges. Under this scenario, countries around the world have seen the need to create solid and sustainable airline companies that allow guaranteeing and strengthening national and international air connectivity and, at the same time, generating value for the consumer.
“This is an important day for Viva as it is the perfect scenario to continue with our growth and expansion strategy, keeping the flag of air inclusion and strengthening our company. Furthermore, if in the future the authorities approve the management of both groups in the same holding company, it will encourage the air transportation market to continue growing, promoting low fares for users and a good service with the best punctuality, giving everyone the opportunity to fly to many destinations around the world. It will also be a source of qualified employment generation, providing more and better job opportunities for current and future employees, as well as continue to positively impact the connectivity of Colombia, the region and the economic development of the country,” added Declan Ryan, founding partner of Viva.
In addition, if all the pertinent authorizations are obtained, both Avianca and Viva would have a more stable financial profile that would allow them to accelerate investment, innovation and growth.
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