The Air Market is Distributed in Colombia

The agreement between Avianca and Viva Air would lead to the holding company obtaining more than 50% participation.

The announcement, at the end of last week, about an agreement between Avianca and Viva Air in order for both to integrate the same business caused a shock in the national aeronautical industry.

(Unión Avianca and Viva, blow to the board of the low cost?).

And it was not for less, if the alliance was authorized, the holding company would cover more than half of the air market cake in the country with 52.5%, according to the most recent report on the participation of the airlines that operate in Colombia, in what run from 2022.

This year, Avianca reaches a 36.3% share, while Viva Air has 16.2%, that is, between the two they would control 52.5% of the local market.

For its part, Latam Airlines has a 20% stake, Wingo (which belongs to Latam) 4.5%, Easyfly 4%, Satena 2.2% and the remaining 16.7% is shared by other airlines. little.

VARIATIONS

These figures are the most recent and show an increase of Avianca compared to last year, whose participation at the end of 2021 was 32.3%, while Viva Air closed with 17.1%, Latam Airlines 20.2%. , Wingo 4.7%, Easyfly 4.7%, Satena 2.9% and other airlines 18.1%.

(How will Viva Air and Avianca work after being in the same holding company).

With this bet, Avianca seeks to reach its pre-pandemic participation, which was 46.7% in 2019, while that year Viva Air’s was 10%.

The business is subject to authorizations from the authorities and although both airlines would be part of the same holding company (Avianca’s), each would operate under its own brands and strategies.

“This new and strong group of airlines would benefit customers by having a more efficient cost structure that would allow them to offer even lower prices, as well as a route network that would promote direct connectivity between destinations, a strong loyalty program and a service friendly and efficient according to the needs of the traveler”, said Roberto Kriete, main shareholder and president of the Board of Directors of Avianca, after announcing the business.

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The Air Market is Distributed in Colombia - /10

Summary

The agreement between Avianca and Viva Air would lead to the holding company obtaining more than 50% participation.

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