Viva Air’s cessation of operations was temporary: it would be the airline’s response to a possible fraud complaint against it

In response to the complaint prepared by the Ministry of transportation before the General Prosecutor’s Office of the Nation against live air for alleged swindlethe low-cost airline would allege to Colombian authorities that the suspension of its operations, which took place on February 27, was temporal and not final.

It would be one of the most viable alternatives to deal with this legal process that the company would have, according to what he told her. Diego Marquez Arangodirector of MQA Abogados, to the newspaper The Republic. This would imply that the airline would have to remain in the market even if its integration with Avianca.

“If it is temporary, it is because the company wishes to pursue the execution of its corporate purpose. If the integration is approved, what will happen is that Avianca will want to keep Viva in the market,” the lawyer told the aforementioned outlet.

Anyway, Philippe Cuberosrepresentative of the company, said during a meeting with creditors which took place on Tuesday March 14, that the closure of operations is temporary and that, in addition, in the Disaster recovery process (PRE) entry of multiple creditors will be allowed.

It should be remembered that the liabilities of live air, certified by the tax auditor Kpmg, amount to 4.07 trillion pesos. However, according to the newspaper The Republicthe company would have included only 20 creditors in its collection process for a total of 738,200 million dollars, the 18.1% of its total debt, leaving aside 3.3 trillion pesos.

Meanwhile, the minister Guillaume Reyes pointed out to CM& that they collect all the evidence and information they have on the possible scam of the “low cost” airline, from this portfolio of the national governmentformally present the complaint to the competent authorities.

“We are checking the possibility that Viva (Air) incurred a possible criminal type of swindle almost 200 billion. We are checking the issues, and this week we will announce very tough decisions to the country on this issue,” the official said.

The lawsuit, according to Reyes, would be filed to secure the rights of workers left adrift after administrative decisions by the airline. Also, for alleged violations of the legal system.

“Here, not only is the person respected, the law and the constitution and the rules that govern air travel are respected,” Reyes told the TV news. channel one. He pointed out that among the various complaints and denunciations they have received, there is information on the Travel agencies who declared debts totaling 30 billion pesos for tickets sold by live airbut they received no reply to remedy this debt.

This week, according to the head of the transport portfolio, the decision of the Civil aeronautics Regarding the integration between Avianca there live air, which has been delayed and to which the airline attributes its debacle. Likewise, the deadline for the development of the standardization plans required by the Superintendence of Transport after taking the control measure of the company has expired, for lack of a response, agents will be appointed to lead the process.

The low-cost airline has been in an economic crisis since the pandemic, and although it has recovered in 2021, factors such as the rising dollar and the war in Ukraine, which have made fuel prices more expensive, have worsened its economic problems. Therefore, he had targeted his fusion with Avianca so as not to disappear.

However, the Civil aeronautics did not allow this measure, citing a violation of free competition, since between them would monopolize 60% of the market, and ensured that the airline could have sought other solutions, such as loans or investment research ensure the continuity of its operation.

Despite this, Avianca and Viva have indicated that the airline’s crisis low cost It was not possible to resolve it because Aeronautics did not authorize the merger.