The list of interested parties for the Colombian low-cost airline Viva Air is growing. The interest of JetSmart and Aviance has now been added to that of the Chilean Latam. why do you want to buy it
The queue of contenders to take over Viva Air is being extended, a Colombian low-cost airline in crisis, which reported losses of USD 36 million in the first half of 2022. after a few red number exercises. Latam Airlines just joined the offering between Aviance and JetSmart, the largest airline group in Latin America.
Now Viva Air has a Colombian candidate company to stay and two Chilean companies. That was last week, compulsi, which Latam just entered, was joined by low-cost JetSmart.
"Latam Airlines has expressed interest in starting negotiations on the takeover of Viva Air Colombia", it is stated in the official statement from to make company of Chilean origin, whose share package includes Qatar Airways and the millionaire Chilean Cueto family.
The group announced its interest in staying with the airline, through its subsidiary in Colombia. “We believe that this potential operation was the best option for strengthening the conditions of free competition", he asserted.
"Regardless of our interest in Viva, the integration process of Viva and Aviance continues. Therefore, it is essential for Latam to perform an accelerated analysis of Viva's financial situation. That way, we could move quickly to provide the support your creditors need at this time.", says the text published by the company.
We could move quickly to provide the support your creditors need now
The Colombian subsidiary of the LATAM group assured that it is ready and has the capacity to strengthen its operations in the country. In this sense, the eventual acquisition of Viva becomes an opportunity for the growth of Colombian consumers, the strengthening of their connection and the development of tourism.
This is according to sources close to Viva, founded in Medellín in 2009 the spirit of bankruptcy is latent. Because, today all attention is focused on the speed of Colombian control bodies give it to one of the offers and thus avoid the collapse.
With this aspiration, Latam tries to give a signal that trying to get over the blow caused by the pandemic. In July, received a US$500 million loan for debt restructuring and exit from Chapter 11, of the US Bankruptcy Code. Five months later, towards the end of 2022, he announced it managed to avoid bankruptcy after two and a half years.
INTEREST IN THE LOW COST SEGMENT OF FLIGHTS
Staying in Viva means the possibility of expanding the company's business in low-cost businessa segment that is growing in a global inflationary context, in which travelers want to save on travel.
Buoyed by the boom in low-cost flights, Viva Air managed to grow despite its complex financial situation and the impact of the coronavirus, exacerbated by the rise in fuel prices. Its fleet has 23 aircraft and employs 1,000 direct workers.
It has 44 domestic lines. He is 14 years old at the international level, while he was three before the pandemic. Regional connectivity includes countries such as Brazil, Mexico, Peru and the Dominican Republic.
The growth of low-cost flights was added Colombia - the home country of Viva Air and also Aviance - has been one of the countries to recover the fastest from the Covid-19 restrictions and has already surpassed pre-pandemic numbers.
Between January and November 2022. 43.5 million passengers were mobilized by air in that country, which is a 'record' number that exceeded 2019 by 16.2%, when 41.3 million users moved. Compared to the same period in 2021. the increase was 64.3%.
Source: Cronista
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
