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April 22, 2023
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SIC conditions Avianca and Viva Air to close investigation

SIC conditions Avianca and Viva Air to close investigation

The Superintendence of Industry and Commerce established a guarantee scheme that seeks to benefit consumers, at the same time that it intends to protect competition as a condition to complete the investigation that is being carried out against Avianca and Long live Air.

This is possible thanks to the Resolution 20743 of 2023in which the entity can proceed to complete this process that both airlines face.

(Avianca would plan an opi: this is what is known about it).

The Superindustry clarifies that the investigation that has been carried out can be completed early if “those investigated offer sufficient guarantees to suspend and/or modify the anti-competitive conduct investigated”.

This means that the culmination will be effective in the event that the commitments assumed by the investigated parties generate benefits for competition and for consumersthis in comparison with what would be achieved through a sanction.

(In the midst of the airline crisis, how much would travel insurance help?).

In this case, the scheme established by the SIC contemplates a series of structural measures that, according to the entity, seeks to “protect competitive dynamics
in the air transport market and to benefit consumers, mainly those who may have been affected by the suspension of operations of Viva Colombia and Viva Peru
”.

1. Adopt measures to ensure that they act independently in the market, as long as Avianca and Viva do not obtain authorization from the Civil Aeronautics.

2. Remove from their positions, immediately and definitively, all the people who can create links between the investigated parties.

3. Compensate the passengers who were affected by the suspension of Viva Air operations as a condition to complete the investigation. Similarly, Viva and Avianca will have to establish special and differentiated service channels to attend to all requests from affected customers.

4. In the event that there is a liquidation or dissolution of either of the two airlines, this guarantee scheme will remain in force and will be enforceable with respect to the other investigated parties that continue to develop their business name.

5. Implement compliance programs focused on preventing both Avianca and Viva from engaging in anti-competitive conduct.

6. Prepare weekly reports by an external auditor to verify compliance with the guarantees.

(Increase in prices of tickets and tourist packages have not yet reached the ceiling).

Finally, the SIC also warned that “Failure to comply with any of the obligations contained in the guarantee scheme represents a violation of the Competition Protection Regime that, consequently, could be sanctioned with the imposition of fines of up to 100,000 legal monthly minimum wages in force in accordance with article 25. of Law 1340 of 2009”.

(Will traveling be a luxury? Expert explains what is coming for the sector).

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