Notifications stop decision on Viva-Avianca integration

Notifications stop decision on Viva-Avianca integration

Although everything was planned so that yesterday the Civil Aviation approve the integration of Avianca and Liveestablishing strong conditions and remedial measures in search of achieving a more equitable competition in access to El Dorado airport in BogotaAs Portfolio was able to learn, the decision, at the close of this edition, had not been made.

While the director of the aeronautical authority, Sergio Pariswas yesterday in riohacha, Valledupar and other cities, it had been planned that, in the afternoon, once the entity issued the respective resolution and notified the interested parties, the Transport Minister Guillermo Reyeswould be the one who would inform the country of the content of the administrative decision.

(Aerocivil would guarantee Viva-Avianca integration, with strong conditions).

However, hours passed and, according to various sources, none of the parties had been able to be notified, while other respondents pointed out that the definition of the slots (time slots for aircraft takeoff and landing) would not have concluded, which prevented reaching a final decision. The foregoing because the cornerstone of the process, since it began, has been the request that Avianca cede an important portion of said slots, especially in those with premium hours, since that is where the greatest attraction is to gain market share.

In fact, Portafolio learned that the decision would imply the adoption of strong remediation measures for the allocation of slots, process in which Avianca offered to give up 155 of these slots, in a process in which 32% would correspond to premium schedules, that is, to operations that are carried out leaving Bogotá between 5 in the morning and 7 in the morning, and in the afternoon between 5 and 7:00 pm, as well as those of arrival between 7:00 pm and 10:00 pm.

(JetSmart would start with an 8% fee if it buys Ultra Air).

In addition, market sources said that the authorization is subject not only to this but also to a process of reorganization of traffic rights and parking positions at the Medellín and Cartagena airports.

And they explain that although the issue of slots in El Dorado, Civil Aeronautics is governed by the recommendations of the IATA (recognition of historical slots), when there was a request for integration, an attempt was made to exercise an extraordinary right to reorganize these slots.

However, if the interested airlines see that they approve with very strong conditions, The possibility is open that Avianca may withdraw from the integration operation, if in its analysis the accounts show that it is better not to materialize the integration and continue as it is.

(Elimination of preferential VAT affected air traffic in January).

However, although it was known that the Civil Aeronautics, once it notified the intervening parties and interested third parties, would send a link with the resolution, at press time this step had not been taken. But in the aeronautical market they pointed out that there is a possibility that through Twitter the aeronautical entity could report at any time, once these conditions are met.

One respondent even indicated that it is possible that some interested party had not been calm with the approval with remedies and raised their hand to request adjustments, and even that the situation that Ultra Air began to face had some interference in the process.

(Avianca would not be hiring Viva employees, but Latam would).


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