Aeronáutica Civil rejects Avianca-Viva merger

The civil aviation authority of Colombia, Aeronáutica Civil has rejected the merger of Avianca and Viva citing seven reasons. One of the most important factors was that the merger would be a risk to the competition as it would only reinforce the market power of Avianca and Viva. These two carriers currently fly on 59 domestic routes, with over 93.7% of the domestic traffic. Aeronáutica Civil said: “The integration between Avianca, Viva Colombia, and Viva Peru poses risks to competition in the sector and consumer welfare. If the proposed integration were allowed, it would generate or reinforce market power in favour of