The CEO of Colombian ULCC Viva has resigned as the airline continues to push the country’s government to approve its acquisition by Avianca.
Felix Antelo was named Viva’s CEO in 2018 after serving in the same position at LATAM Airlines Peru. He informed Viva’s Board of Directors of his resignation on Feb. 22, citing recent health concerns, Viva said in a statement. The airline has named its COO Francisco Lalinde as interim CEO.
The airline has also said that four of its aircraft have been gradually grounded. Viva’s major shareholder Castlesouth recently announced the airline could lose aircraft unless Colombian regulators approve the Avianca transaction. Prior to the grounding, Viva operated a mix of 21 Airbus A320ceos and A320neos.
Avianca announced its plans to acquire Viva in April 2022, but the approval process by Colombia’s aviation regulator Aerocivil has had twists and turns. The country’s government rejected the acquisition in November 2022, and Avianca and Viva then offered concessions in order to gain approval. In January, the government said it was re-examining the agreement after determining a substantial irregularity occurred in its initial review.
Viva’s financial position has been weakening since Avianca announced the acquisition, and in August 2022 the airlines asked Aerocivil for expedited antitrust approval, citing Viva’s delicate financial state.
Viva recently entered into a voluntary 90-day restructuring, explaining it aimed to re-work its debts through negotiations with major creditors.
Other airlines have recently expressed an interest in acquiring Viva. South American ULCC group JetSMART and LATAM Airlines Colombia have both said they would like to purchase Viva, but no formal offers have been made.
Viva and Castlesouth, which holds voting rights in the airline, continue to urge Aerocivil to “quickly approve the pending transaction and allow Viva to become part of a larger and stronger airline group.”
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