Avianca And Viva’s Merger Rejected – What Happens Next?

On November 8, 2022, Colombia’s Aeronautical Authority concluded that the integration between Avianca

, Viva Colombia, and Viva Peru poses risks to competition in the sector and consumer welfare. Therefore, it has rejected the airlines’ first attempt to merge. With Avianca and Viva’s Merger Rejected – What happens next?  

The rejection

Surprisingly, Colombia’s Aeronautical Authority sided with ultra-low-cost carrier Ultra Air when it announced that the integration between Avianca and Viva would be detrimental to the domestic civil aviation industry. After studying the information provided by both carriers (which submitted their partnership on August 8, asking for quick authorization, as it was the only way to secure Viva’s financial future), Aerocivil concluded that a merger would: