Competition authorities initiated an investigation against AVIANCA, VIVA AIR, and VIVA PERU for allegedly having participated in an M&A operation without prior authorization from Colombia’s aeronautical authority, thus failing to comply with the legal duty to report a merger.
According to authorities, the acquisition of the economic rights of VIVA AIR and VIVA PERU by INVESTMENT VEHICLE 1 LIMITED, controlling company of AVIANCA, is sufficient to constitute a merger, or at least, the initiation of a merger between the airlines.
If a violation to free competition is proven, the Authority may impose sanctions exceeding USD 21 million, in accordance with the law, and may even order the reversal of said merger operation.
