Taca and Colombia's Avianca Discussing Alliance

Avianca CEO Fabio Villegas announced they are negotiating a strategic alliance between both airlines.

Tuesday, October 6, 2009

No further detail was known about this potential alliance between Colombia's largest air company and Central America's largest air transportation group, nor if the negotiation includes acquisitions or mergers.

More on this topic

Avianca-Taca Purchases Aerogal

March 2010

The group officially announced the purchase of 100% of Ecuadorian company Aerogal.

Gabriela Sommerfield, Aerogal’s president, announced that they will continue using the Aerogal brand.

“’This is the formal announcement of what we consider a landmark agreement, one that will change the course of commercial aviation in Latin America’, stated Fabio Villegas, president of Avianca-Taca, who took part in a press conference with Gabriela Sommerfield”, reported Elfinancierocr.com.

$10 Million for 10% of TACA's Shares

October 2009

As part of the negotiation process, Avianca acquired 10% of Taca Holdings Group.

The stock purchase is due to accounting and fiscal issues, reported TACA's President Roberto Kriete and Avianca's CEO Fabio Villegas.

"The alliance will require various steps. The first one is the regulatory process, which needs to be approved in El Salvador, United States, Colombia and other countries.

Avianca + Taca = Holdco

October 2009

Five years ago Avianca was on the brink of bankruptcy. After purchasing TACA, it is one of the largest airlines of Latin America.

The merger of both companies is likely to trigger a process of airline concentration in Latin America. AeroMéxico has already announced it will seek alliances beyond commercial agreements.

Taca and Avianca to Merge Operations

October 2009

The airlines will merge their operations, becoming one of the largest in Latin America.

They announced the agreement must still be approved by Colombian and Salvadoran regulations, in order to make the union a reality.

Roberto Kriete, President of Taca, said that "airlines merging is a mainstream trend in the industry", reported Laprensagrafica.com.

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