LatinNews Daily - 15 May 2023

In brief: Colombia’s Viva Air collapses after Avianca pulls out of merger

* Colombian airline Avianca has announced its withdrawal from a planned merger with Viva Air, less than two months after its approval, resulting in the collapse of Viva – one of Colombia’s most used airlines. In a statement, Avianca CEO Adrian Neuhauser said that, despite efforts to curtail the impact of Viva Air’s financial crisis, the integration plan was not conducive to Viva’s full recovery and could have jeopardised the stability of Avianca. The airline also stated that the conditions of the merger, as set out by Colombia’s aviation authority, Aeronáutica Civil, could not facilitate the reactivation of Viva, highlighting an absence of regulatory flexibility and the imposition of commitments on Avianca which did not align with the reality of Viva’s position. Shortly after Avianca’s announcement, Viva tweeted that “without the possibility of financial support, the company no longer has the capacity to continue operating”

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