Colombian airline Viva Air announces its new CEO amid financial difficulties

The airline low cost colombian Viva Air on Thursday appointed Francisco Lalinde as president and interim CEO to replace Félix Antelo who resigned citing health problems, the company reported.

The replacement in the executive presidency occurs in the midst of the financial difficulties that the company is facing and that forced it this week to ground five Airbus A320 planes, while it awaits a decision on its eventual alliance with Avianca.

“In my new role, I will continue to do what Felix has done on our behalf for the past five years: keep communication open with our team and make sure we give it our all for Viva,” Lalinde, who has more than 30 years of experience in the airline industry and had been serving as vice president of operations, said in a statement.

The airline also recently started a Business Recovery Process to renegotiate debts with its creditors and achieve its permanence in the market.

Colombia’s flagship airline, Avianca, signed an agreement with Viva in April 2022 for a business integration process aimed at rescuing the second company, but Civil Aeronautics objected in November.

After an appeal by Avianca and Viva, the aviation governing body annulled the integration process in January due to irregularities in the procedure and reopened it.

Although the two companies are still awaiting a response to their integration process from Civil Aeronautics, this month the ultra-low-cost airline JetSMART announced its intention to buy 100% of Viva, a bid to which added LATAM Airlines.

Viva, which emerged as a low-cost airline with operations in Colombia and Peru, was left with a fleet of 16 planes.

The airline is going through a complex financial situation due to the impact of the COVID-19 pandemic, aggravated by the rise in the price of fuel during 2022 and the devaluation of the Colombian peso.

Source: Reuters