Viva Air: What happened to the airline that suspended flights?

Viva Air has suspended its operations since yesterday evening, February 27, without prior notice to passengers.

now hundreds passengers They got stuck, but what happened to the Colombian airline operating in Peru?

The company issued a statement suspending its flights due to “lack of a timely determination of Aerocivil”.

As is known, Viva Air He sought to join Avianca, which is currently Colombia’s largest airline with 32% of the market, while Viva Air owns 15% of the market.

The government did not authorize the merger and admitted this Monday that a group of five airlines among which Aerolíneas Argentinas, Latam and Chile’s JetSmart intervene to protect “free economic competition”.

“After more than seven months of delay by the organization, Viva has provided the Colombian government with numerous pieces of evidence to demonstrate that it is in a critical financial situation, ensuring that the only way it can continue to fly is through a Civil Aeronautics permit. is part of a stronger and well-capitalized group of airlines,” read a statement posted on Twitter last night.

Viva Air recalled that the application was submitted in August 2022, but was initially rejected in November. Subsequently, in January 2023, Civil Aeronautics canceled the entire process because proper procedures were not followed in evaluating the deal.

“Over a seven-month period, the government received more than five financial updates to show that Live are competent to consider your request as a “company in crisis exclusion”, which has realized the urgent urgency of determination,” they added in a statement.

It is worth noting that earlier this month the airline filed for insolvency under Colombian law.

Despite the suspension of its activities, company assured that he will continue negotiations with his creditors and will work to maintain the possibility of resuming his activities in the future.

Bloomberg indicates that Latam Airlines and JetSmart have expressed their intention to acquire Viva Air. However, the proposals were rejected by Avianca.

What is the relationship between Viva Air and Avianca?

In April 2022, Viva Air was sold to Grupo Caoba, an investor AviancaVolaris and Sky Airlines.

On that day, Avianca and Viva Air signed an agreement to become part of the same business group called Grupo Abra and asked Colombian Civil Aviation to integrate their operations, without yet getting a green light from the regulator.

Similarly, Irelandia Aviation, Viva’s former owners and new controllers have estimated the cost airline into a trust currently managed by the British company CastleSouth.

Following the suspension of operations, CastleSouth also released a statement saying that if the airline “does not act and Viva disappears from the market, the Colombian government will favor the interests of airlines operated from Argentina, Chile, Panama and the United States.” higher than that of the Living itself.

For its part, the Colombian Civil Aviation Authority indicated that on November 4, 2022, the Air Transport Authority objected to the operation, “determining that it tends to unduly restrict competition.”