Integration between Avianca and Viva would create a monopoly, says CEO of Ultra Air
The CEO and founder of the low-cost airline Ultra Air, William Shaw, spoke exclusively with W Radio and spoke about the integration between Avianca and Viva, which was requested a few days ago from the Civil Aeronautics, considering that it would be “allowing the creation of a monopoly in Colombian air transport”. In addition, he warned that it would put at risk what has been achieved in the last 10 years in the low-cost market.
→ Colombia: Record passenger figures in first half of 2022.
Ultra Air assures that “with this integration Avianca and Viva would have 65% of the market” adding that “presenting the integration request during the first business day of the Government of President Gustavo Petro, under the argument of a possible bankruptcy of Viva Air in If it is not authorized, it would be part of a pressure strategy to favor the monopoly at a time when the market registers a growth of 30% compared to 2019.
“We feel that allowing a return to the times when Colombian domestic aviation was a monopoly where they abuse a dominant position would be to reverse so many years of development in the tourism sector and in infrastructure that Colombia has had,” said Shaw.
«If it is approved, it would return to a single company having a large part of the Colombian domestic market, making it easier for it to have a dominant position, which would also be a setback in the “open skies” policy with which it has been sought for years. make the commercial air market in Colombia more diverse”.
→ Air Century inaugurated its flights between Santo Domingo and Barranquilla.
In terms of rates, Ultra Air assured that the integration would also have impacts for users, recalling that in the past, when scenarios similar to a monopoly were presented, there were routes and journeys that went from costing 150 thousand pesos to about 450 thousand pesos, which Of course, if it happens again, it would not only affect the citizens’ pockets, but it would also put at risk the growth that the sector has been experiencing.
Facing the point in which it is considered that the recent declaration of both Avianca and Viva in which it was assured that if the integration request is not successfully completed, it would prevent Viva from being thrown a lifeline since it would be close to the bankruptcy, William Shaw said “from the point of view of people who are in aviation, everything depends on the infrastructure you have, the slots, the approved routes and the planes with which you operate those routes, you can have the Viva plane or you can have the Avianca plane but it is how many seats you have offered in each market and when they allow you an alliance you will be able to take the planes and divide them into the routes that you have to be able to strangle the market and raise the rates ”.
Related Topics
American Airlines Expands Winter Network with New Destinations for Snow, Sun, and Adventure Lovers
Embraer Expands U.S. Presence with New Maintenance Center in Dallas-Fort Worth
JetBlue’s Second-Largest Investor Pressures Airline: Could Sell Stake If There Are No improvements
Delta Bets Big on Seattle: New International Routes and Two VIP Lounges
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.