The large traditional airlines have been forced to accelerate their entry into the low cost model (low cost) due to the economic crisis. Avianca is next on the list of major airlines called for this evolution. It is seen that one way that companies have to accelerate their entry into low cost is organically, creating new divisions.
Avianca is looking to buy, integrate or merge with Chile’s Sky, or Colombia’s Viva Air, in their transition to cheap flights. Efforts that passengers have already witnessed in changing the furniture of chairs. If Avianca buys or merges with Viva, the new company would reach a combined share of 65% in the Colombian market, taking into account the participation data of the Civil Aeronautics as of February 2022.
LR learned that they are in consultation with the Superintendence of Industry and Commerce on approaches between the airlines, which would give way to one of the businesses of the year and a powerful player in the cheap market.
The pandemic has reassessed the VIP experience model that the company had been betting on, which has just emerged from Chapter 11 of the United States Bankruptcy Code, a process in which it restructured its debt.
William Shaw, founder of Viva Air and Ultra Air, referred to the possible business.
“As a pioneer in having brought the low-cost model to Colombia, I feel very honored of a possible acquisition by Avianca of Viva, be it to fly at low cost,” he said.