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Avianca filed an appeal to the Aerocivil where he proposes a new plan to save Viva and thus avoid its potential closure.
Given the refusal of Aerocivil to the integration proposal of two of the most important Colombian airlines due to the fear of market control on certain routes that would reach the 100% market control and potential rate increase, Avianca has prepared a new plan for this union to be approved.
Avianca's new plan for Viva
In line with the intention and will of Avianca and its shareholders to actively participate in the rescue of Viva, The two airlines filed an appeal before the Civil Aeronautics and explained to this entity and the National Government their willingness to propose solutions that resolve the concerns of the authority in its objection to the request for both companies to be part of the same group business.
In order to maintain connectivity Colombia, your regions and your travelers are the priority, the airline proposed the following five points:
- Decrease in participation in El Dorado de Bogotá: Return a relevant percentage of slots – landing and takeoff permits– a la Aerocivil y ceder slots con activos –asociados- to competitors, with the aim that other airlines can, if they wish, grow its operations in El Dorado.
- Viva Survival: Keep the brand and its model low-cost; preserve as many jobs as possible, retain a number of its aircraft and the operation of the routes on which Viva flies exclusively.
- Rate Protection: On the three routes where both airlines now have the 100% of operation as a result of the transaction.
- Promotion of regional connectivity: Offer codeshare or interline agreements with Satena on routes where it is the only operator, strengthening the social role of this company to give more competitiveness to the isolated territories of the country.
- Maintenance of Viva interline agreements: To ensure the connectivity that this company provides to passengers and other airlines.
About Adrian Neuhauser, President and CEO of Avianca, commented:
“We are open and willing to continue building the history of Colombia and to contribute to the strengthening of the air market so that the country is increasingly and better connected.. Therefore, We put different alternatives on the table so that the authority can study them in light of protecting the largest number of formal jobs; maintain the regional connectivity offered by Viva; as well as your brand and what makes it special. All this, aimed at ensuring the general welfare of air transport users, especially those who have flown for the first time thanks to Viva”.
as it is public, Viva going through a complex financial situation, product of the impact of two years of pandemic and exacerbated by the marked rise in the price of fuel evidenced during this year, as well as the devaluation of the Colombian peso.
Avianca Trust the country's institutions so that these alternatives are taken into account in order to protect passengers, jobs, and promote connectivity to give Colombians more access to air transport.
In the event that the final decision of the authorities makes it impossible to rescue Viva and its consequent effects, Avianca, within the legal and operational capacity that it currently has, will do everything possible to meet the demand and needs of the country in the face of the possible disappearance of a competitor.
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