Avianca would be thinking of buying Viva Air

After El Dorado Airport requested an amendment to the environmental license, which includes the phased extension of operating hours in the direction of Bogotá for the two runways. The aeronautical industry is beginning to revive, Colombian airline Avianca would be analyzing possibilities of doing business with Viva Air.

According to the newspaper La República, at the moment the approaches between airlines are in consultation with the Superintendency of Industry and Commerce (SIC), which is responsible for analyzing competition processes to establish that market limits are not exceeded, which today is 45% of Avianca, 20% of Viva Air, according to data of the Civil Aeronautics with a cut to February 2022.

Avianca Holding, which in 2020 had a total operating income of US $1,711 million and today offers 87 routes in Colombia and 128 in the world, with more than 3,800 weekly flights and more than 640,000 seats per week available to Colombian customers. It totals 198 aircraft operating globally.

For its part, Viva Air, the company that operates 46 domestic routes in Colombia and Peru, 14 international routes: United States, Mexico, Peru, Dominican Republic, Argentina and Brazil. It has been marching on the wave of the 'low cost' trend.

The Viva airline today has 22 Airbus 320 aircraft. According to the results for 2020, revenues amounted to $2,945 million, which represented a 73% drop compared to 2019, amid mobility restrictions due to covid-19.

The companies did not confirm or rule out the move. The airlines' board of directors will be responsible for analyzing the business that would be carried out in Panama and a key point will be the value that in these industries would be close to 11 times the value of EBITDA.

If Avianca buys or merges with Viva, the new company would achieve a 65% stake in the Colombian market, taking into account the participation data of Aeronáutica Civil as of February 2022.

The president of Sky Airlines, Holger Paulmann, said he did not rule out the possibility of a merger with Avianca. In a dialogue with the newspaper El Mercurio, the director referred to the issue and explained that, “there could be shared benefits and it makes sense to unite partners who have the same or similar business model.” Sky Airlines invested more than US$500 million to renew its fleet.”

With the reactivation of air tourism, low-cost airlines have gained prominence. Currently, companies such as Volaris, Wingo, Viva and Avianca itself, have launched rates that, depending on the date and time, can range from $30,000 to $50,000 (for domestic destinations) and from $800,000 for international destinations.

From his social networks, beyond publishing about his musical releases and concerts, Jhonny Rivera often shares anecdotes about his professional and private life, stories behind his songs, stories related to his followers and so much more. Now, however, she used her Instagram account to account for the anger she felt at something she considered an injustice against an Avianca employee.

So, this Wednesday, April 20, the singer of popular music published a video in which he narrates the situation.

“I am here in the VIP room of Avianca and I just had a rage, imagine that I was standing in line there (show the place) in that part where they give lunch and a man without standing in line left the other side and the girl said to him: -Sir, you have to wait in line- ha... he treated her as he wanted, she said rude, why she shouted it, that he was going to complain, he went and complained to Avianca over there and the Avianca people came, they even took a picture of the girl.”

In view of the panorama, Rivera wanted to intervene. “I left and said to them: “I witnessed that, I don't want them to affect the poor girl because that is really unfair what the lord is doing.”

However, the complaint had escalated to “Avianca's senior management”, so that the employee could be at risk of being left without work. This was precisely the reason why the interpreter of 'I miss you' wanted to share this experience on his Instagram feed: “I want this video to suddenly be useful for something”.

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