Colombia’s Avianca Group plans to merge with the local low-cost carrier Viva in a bid to strengthen the country’s airline sector, financial stability, and offer a greater route network in Latin America.
Both airlines will keep separate brandings and business strategies, according to their statement. The new merger will come into effect after both carriers get the approval from necessary regulators.
“If the authorities approve the management of both groups under the same holding company, it will encourage the growth of the air transport market, promoting low rates for users and good service with the best punctuality, allowing everyone to fly with a world of destinations,” said Declan Ryan, founding partner of Viva.
The decision to merge both airlines was made after the COVID-19 pandemic forced carriers around the world to adapt to new ways of flying and to strengthen their operations.
“The pandemic has awakened countries worldwide to see the need to create solid and sustainable airline groups to guarantee and enhance domestic and international air connectivity and, at the same time, generate value for the consumer,” Avianca Group said.