Avianca Holdings, Colombia's largest airline, has announced that it will not be continuing its integration plan with low-cost carrier Viva Air. The decision comes in light of concerns over regulations from the country's civil aviation authority that could potentially affect Avianca's stability.
According to Avianca, the regulations required the airline to take on commitments, air routes, and prices that did not correspond with Viva's real capacities after the latter suspended its operations for two months. In a statement released on Saturday, Avianca CEO Adrian Neuhauser expressed disappointment over the situation, stating that "this long process puts Viva, the airline that brought the low-cost model to the country, at imminent risk of disappearing."
In March, the civil aviation authority announced that it had approved the integration between the two airlines, with certain conditions such as maintaining Viva's low-cost plan. However, it appears that the practical implications of these conditions were not feasible for Avianca.
The cancellation of the integration plan is a blow to Viva Air, which has been instrumental in bringing the low-cost airline model to Colombia. The airline has yet to release a statement on the matter.