Colombian airline company Avianca and Viva have lodged a request with the Civil Aeronautics of Colombia to integrate the two companies.
In April last year, stakeholders of the two companies signed an agreement to become part of the same business group.
According to the agreement, all the economic rights of Viva in Colombia and Peru were acquired without this implying control or administration.
A month later, Avianca and Gol reached an agreement to create Grupo Abra, which according to the companies, would create one of the leaders in air transportation in Latin America.
Avianca said that its stakeholders have also identified Viva’s complex financial situation and have requested the Civil Aeronautics Authority to approve the integration with Viva under the legal figure of ‘company in crisis’.
The move was made with an intent to safeguard connectivity, protect the air transport service offer and rescue the company.
Avianca president and CEO Adrian Neuhauser said: “The integration request with Viva seeks to fight for its survival in the market, as well as to maintain the competitiveness it has built during ten years of operation.
“Even with the complex outlook that aviation is experiencing in the world due to rising fuel prices, as well as the historical inflation in the region, Avianca has a solid financial position, evident in the recent announcements, which would allow it to achieve synergies and take advantage of economies of scale with Viva, provide financial support and participate in its management.
“We trust that the Aeronautical Authority will be able to study this request quickly, given its relevance for the country.”
With this integration, Viva would be part of the Latin American airline group and could benefit from the rescue of the low-cost pioneer in Colombia.