The majority shareholders of Avianca and Viva Air, two of the airlines with the largest market shares in the country and also in Latin America, have the airline industry “diagnosing” what would be the impact on the industry of an imminent operational union between both airlines , after the first acquires the second. Declan Ryan, founding partner of Viva, sold 100% of the shares to Roberto Kriete, Avianca shareholder and Chairman of its Board of Directors.
What has happened so far is that there has been a share transaction between the two directors of the companies, but not an operational merger. What the experts on the subject say is that the immediate effect of this decision will be the operational merger of both airlines. Therefore, the impact of this on the market will be a reconfiguration of the airline industry, not only nationally, but also regionally, given that both operate in other countries.
“In the international market, Viva Air is not a big player like Avianca is. The great earthquake would occur in the domestic market, in which a single group would have the majority of participation”, explained Juan Felipe Reyes, aeronautical analyst and lawyer.
Avianca and Viva Air together would have 65% of the market share in Colombia. The competent authorities, such as the Superintendency of Industry and Commerce or Aerocivil, will have to check that the new group does not exceed the participation limit quota.