Rivals Avianca and Latam Airlines Face Off in Colombia

South America’s second-largest airline, Avianca, emerged from its US Chapter 11 restructuring over a year ago as a fundamentally changed carrier. It would no longer be known as a full-service airline, but instead would add aspects of the budget carrier model that is rapidly expanding in the region. Out were business class seats, free food and drink, and other extra amenities. In were a la carte fare bundles ranging from the no-frills “XS” to all-inclusive “L” for economy class travelers, new seats in a more densely packed layout and more point-to-point routes that bypass its traditional hub in Bogotá. “We don’t want to lose our historical customers — we want to keep a differentiated product to address them, but on the other hand we have to acknowledge that our competitors has a much lighter product,” Avianca CEO Adrian Neuhauser, who replaced Anko Van der Werff in April 2021, said late that year. “So we try and find that balance.” The changes have made Avianca more like the growing segment of discount competitors, including JetSmart, Viva Air, and Copa Airlines-owned Wingo. But, as the legacy carrier has gone downmarket, an opening in Colombia has emerged for one of its biggest rivals: Latam Airlines Group.<br/>