Due to the controversy that has been generated regarding the authorization of the merger between the airlines Avianca and Viva Air, the country found itself immersed in a critical situation of suspension of operations by the airline Viva Air, a company that offered the country a "low-cost" model, being accessible to the population.
Additionally, its suspension not only brings consequences for consumers, since, as is known to all, its non-operation generates repercussions for a large number of workers and collaborators directly and indirectly of the airline.
In this regard, and seeking to provide a generic perspective of the process, it is necessary to indicate that, at present, airlines are fragile businesses due to the high investment that must be generated, adding the various situations that concurrently arise in the market, such as force majeure and fortuitous events, which they must face.
In line with the aforementioned, one of the situations presented for the decision to unify the economic rights of the airlines was the great impact generated as a result of COVID-19, resulting in prolonged months of closure, which, to date, not only the aforementioned airlines, but also various airlines worldwide are recovering from the restrictions taken at the time.
Therefore, and due to the little regulatory flexibility issued by the Aerocivil, and the various positions of considering that the joint market participation between the airlines would establish a monopoly, a position not consistent with the case, since, although it is evident that the merger between the airlines would generate a large percentage of participation in the national market, it would not be sufficient cause to determine that it would have a dominant position in the market; on the contrary, the freedom of the air market would continue to operate in the decision-making by consumers.
Hand in hand with the above, one must take as a reference the various integrations that have been generated worldwide, granting the possibility of structuring the market, and continuing to offer air service to different areas of the country, a challenge that involves airlines assuming price elasticity as a result of demand, that is, the cost assumed by offering their services at a rationally justifiable price for the consumer.
Thus, after nine (9) months of having initiated the integration request process by the airline Avianca, whose main objective was to strengthen the administrative and financial operation of the airline Viva Air, a process that was developed in favor of proposing various alternatives by Avianca, in order to be approved and consistent with the conditions established by the Aerocivil in its Resolution 873 of 2023, the decision is made to withdraw from the process by Avianca.
Within the argumentation in the decision-making by the airline Avianca, it is worth highlighting, as has been developing, the reality in the aviation sector, being highly affected by the multiple recessions and difficulties such as high fuel prices, a situation that generates a rise in prices, making it impossible to continue operating as a "low-cost" airline.
Therefore, the strategic path that was intended to be generated on the corresponding merger between the airlines consisted of integrating into a single company (Avianca) the airline Viva Air, which would continue operating under its own brand, and offering the same routes that it had been operating so far.
In conclusion, the various limitations that were generated and the prolongation of the process that has been developing, leaves as results relevant losses in the tourism sector, on the other hand, limits the decision-making of consumers, since the supply is subject to certain airlines that currently offer their demand at high costs, and the damages caused to its workers. In this sense, we remain subject to the regulation and decision-making that is generated regarding the air service to be offered to the Colombian market.