Avianca Embraces Budget Airline Model in Deal for Viva Air
April 29th, 2022 at 10:14 AM EDT
Colombia-based Avianca embraced a low-cost model as part of its U.S. Chapter 11 bankruptcy reorganization, and now has plans to acquire budget competitor Viva Air.
Financial terms of the deal that was announced on April 29 were not released, but Viva Air, which has operations in Colombia and Peru, would become part of the newly reconstituted Avianca Group.
The two airlines will continue to operate separately under their own brands, at least for the time being. Combining fully would require regulatory approvals in both Colombia and Peru. In addition, Viva founding partner and Executive Chairman Declan Ryan would join the Avianca