Is the Agreement Between Avianca and Viva a Monopoly?
Litigation attorney Danilo Romero was interviewed by El Espectador about the combination of Colombia airlines Avianca and Viva Air. The recently announced agreement for Viva Air to become part of the same holding company as Avianca has caused speculation about whether the combined operation will create a monopoly. Mr. Romero, who focuses on antitrust litigation, highlighted that Colombia's Civil Aeronautics agency will consider the total market participation and affected routes when it reviews the agreement for regulatory approval. He also described some of the conditions the agency could place on the structure of the new group.
"Clearly here there continue to be competitors and because of that it is not definitively a monopoly," he said. "[Some examples of constraints have to do with] giving up some routes, issues of where the workshops and maintenance are to guarantee that there is a fully competitive market."