Avianca and Viva Agree to Operate Under Same Joint Holding Company, Future Merger Possible
The majority shareholders of Avianca and Viva have today announced that Viva will become part of the same holding company, Avianca Group International Limited. Viva’s founding partner Declan Ryan will join Avianca Group’s Board.
On Friday (April 29, 2022), Avianca announced that the majority of the shareholders of Avianca and Viva Air have decided to become part of the same joint holding company, Avianca Group International Limited (Avianca Group). The transaction will help strengthen the carriers, while opening up more opportunities to their combined 13,000 team members, and offering customers over 94 direct connections. As part of the transaction, Viva’s Founding Partner Declan Ryan will join Avianca Group’s Board of Directors. In compliance with the regulations of Colombia and other countries, both airlines will remain completely independent, with any future merger subject to obtaining all necessary regulatory approvals.
In today’s announcment, Avianca’s main shareholder and Chairman of the Board of Directors, Roberto Kriete, said,
“This new and robust group of airlines will benefit customers by using a more efficient cost structure to offer lower fares, a route network that delivers direct connections between destinations, a strong loyalty program, and friendly and efficient service. In addition, the combination will help ensure that customers in Colombia and Latin America have two airlines that serve the Latin American market.”
Also commenting on the joint holding company agreement, Viva’s Founding Partner, Declan Ryan, said.
“This is an important day for Viva as it is the perfect scenario to continue with our growth and expansion strategy, staying true to our goal of inclusiveness in air travel. If the authorities approve the management of both groups under the same holding company, it will encourage the growth of the air transport market, promoting low rates for users and good service with the best punctuality, allowing everyone to fly with a world of destinations. This transaction and a potential future combination will create high-skilled jobs for our employees and our suppliers. By delivering the fundamental good of bringing people together, we will positively impact the connectivity of Colombia, the region, and the economic development of the country.”
Avianca operates the largest network in Colombia, and one of the largest in Latin America with 120 routes and over 3,200 weekly flights, connecting guests to more than 65 destinations in Colombia, Latin America and Europe.
Viva Air is the leading low-cost carrier in Latin America. The carrier offers service to over 25 destinations in Latin America, including 26 domestic routes within Colombia, service to 12 national destinations and seven international routes including multiple gateways in Peru, Mexico and the US. As part of their expansion plans, Viva Air has purchased 50 new Airbus A320 aircraft, which have started arriving in 2018, including 15 A320ceos and 35 A320neos.
Source(s): Avianca, Viva Air