The reconfiguration of the airline industry following the COVID-19 pandemic has had winners and losers based on both their previous condition and their ability to adapt to changes and take advantage of competitive advantages.
From that challenge, Colombia’s Viva has emerged to position itself as the second most important airline in that market, capturing 24% of passenger traffic, further reducing its unit costs and working to position Medellin as a new, continental-scale hub. All this, the ultra-low-cost airline stated «organically in the market without the extraordinary and temporary support of courts», in reference to the process undergone by two of its main competitors, Avianca and LATAM.
As Colombia is one of the markets with the best recovery rates (even though it was one of the markets that took the longest to re-authorize scheduled flights), many companies have set their eyes on it, so in order to defend its position and further boost Viva’s expansion, the group announced today the incorporation of Cartesian Capital Group as a minority shareholder, thus joining Irelandia Aviation (aka Ryanair).
Cartesian also has a stake in Flybondi, Argentina’s first ultra-low-cost carrier that began operations in 2018. Cartesian had already provided Viva with USD 50 million in financing in May 2019.
«Viva found opportunities in challenging and crisis times, adapting to new ways of managing this complex business. Today we can proudly say that, with the commitment of our employees, the evolution of our strategies, and the support of our suppliers and lessors, we have consolidated our position as the leading low-cost airline to/from and within Colombia and Peru. I would like to thank the entire management team and staff of Viva, along with our suppliers, lessors, government agencies and banks for their continued support,» said Felix Antelo, president and CEO of Grupo Viva when announcing the incorporation of Cartesian, which he considered «a timely vote of confidence in our work, business and future».
Perer Yu, an executive partner of Cartesian, said that «even in the midst of an unprecedented crisis, Viva has shown great resilience. Felix and the entire team have consistently demonstrated the agility, creativity and tenacity that make Viva a world-class airline. We look forward to the continued growth and success of the Viva Group.»
John Goode, partner from Irelandia Aviation said,» Cartesian has been a valued partner since 2019 and this is a tremendous vote of confidence in our business model and our team which has seen Viva emerge from the pandemic stronger than ever.»
Viva has already resumed 100% of its pre-pandemic operation (which also resulted in the recovery of jobs) and has expanded by adding routes to Cancun, Mexico City and the United States. Since October 2020, it has added eight A320neo, with 10 more expected by December 2022, complementing its 10 A320ceo. Its network consists of 26 domestic routes in Colombia, seven in Peru, and seven international routes to the United States, Mexico and Peru. Since its founding nine years ago, it has handled more than 28 million passengers.
