Colombian airways Avianca, Viva enchantment in opposition to merger denial By Reuters

BOGOTA (Reuters) – Colombian airways Avianca and Viva have appealed to the aviation regulator after it denied their plan to merge, proposing steps to allay its issues, comparable to yielding some routes to rivals, the businesses stated on Wednesday.

In an April settlement to merge the airways envisaged retaining their respective manufacturers and enterprise methods because the journey sector struggled with the COVID-19 pandemic.

However the governing physique of Colombia’s civil aviation regulator objected, saying the merger posed dangers to competitors and one of the best pursuits of shoppers.

Plans to deal with these issues embrace lowering operations at El Dorado airport within the capital, Bogota, sustaining Viva’s model and low-cost mannequin, including workers and sustaining the price of flights on some routes, Avianca stated in an announcement revealed on Wednesday.

The airways additionally expressed curiosity in working with state-owned Satena to spice up hyperlinks to Colombia’s most distant areas.

Viva faces a fancy monetary scenario after the pandemic introduced a slowdown in journey, worsened this 12 months by rising gas costs and a weaker peso forex.

Avianca stated the enchantment and measures it was proposing would enhance Viva’s funds, yielding advantages for workers and suppliers. It stated it will additionally search to satisfy traveler demand if authorities made it inconceivable to spice up Viva’s monetary well being.

In Might, Brazilian airline Gol Linhas Aereas Inteligentes SA and Avianca unveiled a pact to arrange a Latin American air transport holding firm referred to as Grupo Abra, placing manufacturers below the management of a single firm.

Avianca, which wrapped up a chapter restructuring course of on the finish of final 12 months, has one of many largest operations within the area, with greater than 130 plane and 12,000 workers.

Viva, with a fleet of 23 plane, has about 1,000 direct workers.