© Reuters. FILE PHOTO: An Avianca Airways airplane prepares to take off on the San Oscar Arnulfo Romero Worldwide Airport in San Luis Talpa, El Salvador, February 8, 2022. REUTERS/Jose Cabezas/File Picture
BOGOTA (Reuters) – Colombian airways Avianca and Viva have appealed to the aviation regulator after it denied their plan to merge, proposing steps to allay its considerations, reminiscent of yielding some routes to opponents, the businesses mentioned on Wednesday.
In an April settlement to merge the airways envisaged retaining their respective manufacturers and enterprise methods because the journey sector struggled with the COVID-19 pandemic.
However the governing physique of Colombia’s civil aviation regulator objected, saying the merger posed dangers to competitors and the perfect pursuits of customers.
Plans to handle these considerations embody lowering operations at El Dorado airport within the capital, Bogota, sustaining Viva’s model and low-cost mannequin, including workers and sustaining the price of flights on some routes, Avianca mentioned in a press release revealed on Wednesday.
The airways additionally expressed curiosity in working with state-owned Satena to spice up hyperlinks to Colombia’s most distant areas.
Viva faces a posh monetary state of affairs after the pandemic introduced a slowdown in journey, worsened this 12 months by rising gasoline costs and a weaker peso foreign money.
Avianca mentioned the enchantment and measures it was proposing would enhance Viva’s funds, yielding advantages for workers and suppliers. It mentioned it could additionally search to satisfy traveler demand if authorities made it unattainable to spice up Viva’s monetary well being.
In Could, Brazilian airline Gol Linhas Aereas Inteligentes SA and Avianca unveiled a pact to arrange a Latin American air transport holding firm known as Grupo Abra, placing manufacturers below the management of a single firm.
Avianca, which wrapped up a chapter restructuring course of on the finish of final 12 months, has one of many largest operations within the area, with greater than 130 plane and 12,000 workers.
Viva, with a fleet of 23 plane, has about 1,000 direct workers.