Aviation
Commercial /
Americas
Who gives more?
Latam shows interest in acquiring Viva Air Colombia
Airbus A320
Image: Viva Air
Rafael Ramos
2/17/2023
The ultra low cost airline Viva Colombia already has potential buyers. JetSmart and Avianca have already shown interest in the possible deal. On Tuesday (14th), LATAM Colombia demonstrated its interest in a written communication to the president of Viva Air and Castlesouth Limited (holder of the company's voting rights).
Viva Air Colombia ended 2022 with more than 8 million passengers transported and operates around 15% of all trips within the country with its fleet of 19 aircraft from the Airbus A320 family.
However, the Colombian airline has entered into a recovery process to renegotiate debts with its creditors within 90 days.
“Given Viva's current critical financial condition, the national government's immediate approval to integrate Viva into Avianca is in the interest of Viva and its passengers, creditors, employees and other stakeholders, including the Colombian public,” said the board of Viva. Viva Air.
Avianca and Viva Air already tried to make a merger agreement last year, but it was rejected twice by the country's civil aviation body, as the action could harm competition between Colombian airlines.
LATAM Airlines, for its part, said that any transaction must undergo a financial analysis, in addition to an agreement between the parties involved and the necessary regulatory approvals. LATAM added that the acquisition of Viva Air would be the best option for Viva to face its complicated situation.
Avianca, in turn, also comments on the situation by saying that JetSmart and Latam's proposals are malicious and not viable.
Airbus A320neo
CC BY-SA 2.0, via wikimedia commons
Hyperlinks:
...
...
...
Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
|
|