Viva air tips

Colombia’s civil aviation authority, Aerocivil, is taking a new look at the proposed merger of Avianca and Viva Air following what it described as a “substantial irregularity” in its initial review. That process, which concluded in November, rejected the airlines’ combination due to competition concerns.

The Avianca and Viva Air merger has hit a major roadblock with Colombian authorities objecting to the proposed combination. The move could be a blow to Avianca’s plan to create a pan-South American airline group with Brazil’s Gol.

Brazil will remain a challenging place for ultra low-cost carriers (ULCC) to successfully operate due to its legal environment, high labor and fuel costs and burdens for flight disruptions.  

Good morning from Skift. It’s Thursday, February 9. Here’s what you need to know about the business of travel today.

It may be a full on bidding war for bankrupt Colombian budget airline Viva Air. Latam Airlines has expressed interest in acquiring the carrier, joining Chile’s JetSmart, and put Avianca in defense mode over its proposed merger with Viva.

Struggling Latin American discounter Viva Air has entered the local equivalent to bankruptcy protection under Colombian law, as it works to restructure debt while awaiting a decision on its proposed merger with Avianca.

Struggling Colombian budget airline Viva Air stopped flying late Monday, less than a month after it filed for the local equivalent of bankruptcy.

The potential merger of Avianca and Viva Air took a small step forward Wednesday when the former partially accepted the conditions laid out by the Colombian government for the combination of the country’s largest and third largest airlines.

Whether Viva Air will ever fly again is increasingly an open question. Avianca, which wants to merge with the bankrupt budget carrier, said late Wednesday that the conditions laid out by Colombian civil aviation regulators for the deal “make Viva’s recovery impossible.”

Colombia’s flagship airline Avianca is backing down from a merger with Viva Air, blaming conditions set by the country’s aviation regulator, the company announced Saturday.