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The majority shareholders of both airlines jointly announce that Viva would become part of the same holding company Avianca Group International Limited (Avianca Group), and that Declan Ryan, founding partner of viva, would join the board of directors of the new group, contributing all its expertise in the world of aviation.
The possible incorporation of the control rights of the operations of Viva on Colombia and Peru to the Avianca Group holding will be subject to requesting and obtaining all the necessary regulatory authorizations in the countries that are required.
Avianca and Viva part of the same group
This means that, until the companies request and obtain such authorizations, control - and administration- of Viva in Colombia and Peru will not be part of the same holding, and to that extent, Viva's operations will continue to compete with the airlines that are part of the Avianca Group in all the countries where both groups have a presence.. in addition, as long as the authorizations are not obtained, the way users, providers, employees and entities relate to the different airlines will remain the same, maintaining your internal and external processes, as well as its own sales channels and customer service as they are known today.
In the future, Subject to the completion of the necessary procedures and the authorization by the competent authorities., the shareholders consider that both groups of airlines could be part of the same holding company, maintaining their respective brands and strategies.
“This new and strong group of airlines would benefit customers by having a more efficient cost structure that would allow us to offer even lower prices., in addition to a network of routes that would promote direct connectivity between destinations, a strong loyalty program and friendly, efficient service tailored to the needs of today's traveler. What's more, would give Colombia and Latin America a new and strengthened competitor that is sustainable over time, promoting that both players continue to be relevant in the Latin American market”, commented Roberto Kriete, main shareholder and chairman of the Board of Directors of Avianca.
The decision to unify the economic rights of both groups in the same holding company is made after the greatest crisis in the history of the airline industry -generated by Covid-19- that forced airlines to adapt to new ways of flying and to strengthen their operations to face future challenges. under that stage, Countries around the world have seen the need to create solid and sustainable airline companies that allow guaranteeing and strengthening national and international air connectivity and, at the same time, create value for the consumer.
“This is an important day for Viva as it is the perfect setting to continue with our growth and expansion strategy., maintaining the flag of air inclusion and strengthening our company. What's more, if in the future the authorities approve the management of both groups in the same holding company, will drive the air transport market to continue growing, promoting low rates for users and a good service with the best punctuality, giving everyone the opportunity to fly to many destinations around the world. Likewise, It will be a source of generation of qualified employment, giving more and better job opportunities to current and future employees, as well as continue to positively impact the connectivity of Colombia, the region and the economic development of the country” added Declan Ryan, founding partner of viva.
Adding to the above, if all relevant authorizations are obtained, both Avianca and Viva would have a more stable financial profile that would allow investment to be accelerated, innovation and growth.
