Thousands stranded as Colombia’s Viva Air grounds flights
Struggling low-cost airline Viva Air has suspended its operations in Colombia and Peru, leaving thousands of passengers stranded Tuesday in airports with little support. The airline, owned by the same group that owns Ryanair, said in a statement late Monday that it grounded its flights after the latest delay by Colombian authorities in approving the airline’s requested merger with Avianca, Colombia’s main carrier. Earlier this month Viva had grounded five of its planes and suspended dozens of flights. Viva said it has given the Colombian government plenty of evidence of its dire financial situation and that it can continue only if it merges with the larger airline. “But the Colombian government’s decision jeopardizes the future of low-cost airlines in Colombia and threatens the jobs of 5,000 people,” the statement said. Viva and Avianca last year requested a permit from Colombia’s aviation authority to merge their companies, but deal has faced obstacles from government regulators who fear it could restrict competition in the airline market. Last month, Viva had a 20% share of Colombia’s air passenger market, while Avianca controlled about 40%. Viva was founded in 2009, and ran flights to Colombia’s largest cities, as well flights to Peru, Mexico, Argentina and Florida. In Peru, Viva’s subsidiary, Viva Air Peru, also ran domestic flights to cities like Cuzco.<br/>
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Thousands stranded as Colombia’s Viva Air grounds flights
Struggling low-cost airline Viva Air has suspended its operations in Colombia and Peru, leaving thousands of passengers stranded Tuesday in airports with little support. The airline, owned by the same group that owns Ryanair, said in a statement late Monday that it grounded its flights after the latest delay by Colombian authorities in approving the airline’s requested merger with Avianca, Colombia’s main carrier. Earlier this month Viva had grounded five of its planes and suspended dozens of flights. Viva said it has given the Colombian government plenty of evidence of its dire financial situation and that it can continue only if it merges with the larger airline. “But the Colombian government’s decision jeopardizes the future of low-cost airlines in Colombia and threatens the jobs of 5,000 people,” the statement said. Viva and Avianca last year requested a permit from Colombia’s aviation authority to merge their companies, but deal has faced obstacles from government regulators who fear it could restrict competition in the airline market. Last month, Viva had a 20% share of Colombia’s air passenger market, while Avianca controlled about 40%. Viva was founded in 2009, and ran flights to Colombia’s largest cities, as well flights to Peru, Mexico, Argentina and Florida. In Peru, Viva’s subsidiary, Viva Air Peru, also ran domestic flights to cities like Cuzco.<br/>