LATAM Airlines Colombia issued a statement on February 14 expressing its formal interest in starting negotiations to acquire Fast Colombia SAS, which operates under the commercial name Viva.
In a formal note sent to Viva’s president, Félix Antelo, and Castlesouth Limited, the investment holding company that owns the airline, LATAM informed that the operation «is subject to a financial analysis» (which could be done expediently), a possible agreement between the parties, and the corresponding regulatory approvals.
According to the statement, LATAM Colombia «is prepared and has the capacity to strengthen its operations in the country» and believes that it would be «the best option» to strengthen the conditions of fair competition and provide the necessary support to respond to Viva’s financial situation and its creditors.
Many candidates, one favorite
Viva’s response is still unknown, but considering the company’s reaction to JetSMART’s offer, in which it indicated that the financial analysis process would take longer than the company has, Avianca is likely to have the best chances if the Colombian aeronautical authority decides that actions to eliminate the dominant position of integrated companies satisfy an acceptable minimum.
This is a developing story.
