Avianca announced that it has finalized the alliance with the low cost airline Viva Air, as LR had anticipated, as part of a project to strengthen itself as a Business Group and take advantage of economic efficiencies. The business, which includes Viva in Colombia and Peru, was announced by majority shareholders of both airlines and the idea is that Viva and Avianca become part of the new holding company Avianca Group International Limited (Avianca Group).
The decision to unify the economic rights of both groups is to generate greater national and international air connectivity and promote a more stable financial profile. Among the agreement is also that Declan Ryan, founding partner of Viva, joins the board of directors of the new group, contributing his experience in the world of aviation.
The airlines will maintain their operations with separate brands, but under the same company, and so far the business is subject, as LR had explained, “to requesting and obtaining all the necessary regulatory authorizations in the countries that are required,” they explained in a statement. Viva operates 46 domestic routes in Colombia and Peru and 14 international routes to the United States, Mexico, Peru, the Dominican Republic, Argentina and Brazil.
The companies clarified that “as long as the authorizations are not achieved, the way in which users, suppliers, employees and entities relate to the different airlines will remain the same, maintaining their internal and external processes, as well as their own sales channels. and its customer service as it is known today.
This new and strong group of airlines would benefit customers by having a more efficient cost structure that would allow offering even lower prices, as well as a route network that would promote direct connectivity between destinations, a strong loyalty program and friendly service. and efficient according to the needs of today’s traveler. In addition, it would give Colombia and Latin America a new and strengthened competitor that is sustainable over time, encouraging both players to remain relevant in the Latin American market”, commented Roberto Kriete, main shareholder and Chairman of the Board of Directors of Avianca.
“This is an important day for Viva as it is the perfect setting to continue our growth and expansion strategy, upholding the flag of air inclusion and strengthening our company,” added Declan Ryan, founding partner of Viva.