Viva Air grounded five aircraft due to financial problems
Colombian low-cost airline Viva Air grounded five of its planes Tuesday, citing financial problems, as it awaits a decision from the country’s civil aviation authority on a possible merger with Avianca.
“Viva reduces its operation while awaiting an urgent decision regarding the integration process with Avianca,” the company said in a statement.
“It is key to clarify that the changes in passenger itineraries are being controlled by the company with rearrangement of travelers on other available flights, trying to reduce the impact they will have on their plans,” the airline added.
→ Avianca reiterates and details five proposals to support the rescue of Viva Air
As a result, Viva is now operating with a fleet of 16 aircraft.
The airline recently initiated a local restructuring process to renegotiate debts with its creditors. Viva claims that its financial situation has been aggravated by the increase in fuel prices last year and the devaluation of the Colombian peso.
Avianca reached an agreement last April with Viva Air to merge. However, in November, Colombia’s civil aviation authority opposed the deal, claiming that it posed a risk to competition.
The airlines filed an appeal and, in January, the aviation authority annulled the merger process alleging procedural irregularities and restarted it.
Although both companies are still awaiting a response to their integration process from the Civil Aeronautics Authority, this month JetSmart and Latam Airlines announced their intention to purchase 100% of Viva.
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