Viva Air of Colombia has voluntarily started a local debt restructuring process as it awaits the official government approval of its merger proposal with Avianca.

Viva Air issued this statement (translated from Spanish):

Viva, the low cost airline that promotes air travel in Colombia and the region, announces the start of its Process of Business Recovery (PRE) in accordance with the regulations that protect companies affected by the COVID-19 crisis, with a view to achieving their permanence in the market, pending the urgent definition by Aerocivil about its alliance with Avianca.

This determination occurs due to the crisis that it faces when adding to the effects of the COVID-19, the current macroeconomic factors that are public knowledge

Additionally, the company has not been able to access capital during the last
nine months since it has not yet been possible to implement its integration with another airline, which is still pending authorization from the National Government.

Viva takes part in this voluntary recovery process that lasts 90 days, in order to restructure their debts through a negotiation with their major creditors to continue operating under sustainable conditions that guarantee the continuity of the company.

This decision is given after six months of waiting of the definition of the alliance with Avianca, which if approved would allow us to continue in the low-cost business through our linkage to another group of airlines with weight in the region, with which we want to ensure the preservation of jobs, and reinforce our commitment to generate higher levels of connectivity in the country at low cost on the basis of obtaining the required capital injection.

After studying all the alternatives available to the current situation, we enter this voluntary mediation process while we wait for the urgent decision by the authority of our alliance with Avianca. just as we have adapted in the past, we are convinced that we will be able to overcome this situation for the good of all passengers who have benefited from the Bajo model.

During this restructuring, at Viva we will continue to ensure the continuity of
operations and the provision of our services.

Top Copyright Photo: Viva (Air Colombia) Airbus A320-251N WL HK-5361 (msn 10313) MIA (Antony J. Best). Image: 960043.

Viva (Colombia) aircraft photo gallery: