Another Budget Airline Is Coming to Latin America
Scott Dylan June 08, 2019
Viva Air has plans to launch a third airline in a new country. The Latin American group of carriers has yet to reveal exactly where in Latin America the newest base will be launched, but they have made it clear that they’ll be cashing in on the big surge in budget travel that’s happening right now.
Going Public
It has been announced that the group is planning an initial public offering (IPO) at some point in the next two years. Viva Air hasn’t made it clear whether its shares will be sold in New York or in a Latin American market (Colombia has been suggested), but we do know that, wherever Viva Air goes public, at least $100 million of Viva Air’s equity will be put up for the future IPO. Expectations among leaders at Viva Air are that the value of the group could be placed at more than $500 million.
On Trend
Viva Air is considered by many to be the Ryanair of the Latin American world. You can let your past experiences with that carrier determine whether or not that’s a good thing. What isn’t up for debate is that Latin America’s middle class is falling in love with budget travel and budget airlines are definitely welcomed in the region.
Where’s the proof? Viva has only been operating for seven years. However, it is already in third place when it comes to the biggest carriers in Colombia. Viva Air jumped to second place almost instantly after beginning operations in Peru in 2017.
Predictions
Do we have any hints regarding where Viva Air will launch its third base? The word is that the group is currently considering starting something new in Ecuador. However, it is also possible that the group is planning to launch a base “somewhere” in Central America.
We do know that news of plans for a new base comes just as Viva Air is set to receive new jets. We don’t yet know where the jets will be delivered. However, there’s a good chance that Colombia and Peru could each get up to 20 new planes. It is very likely that the remainder of the order will be reserved for the new base. The Peruvian arm of the carrier began service with just three jets two years ago. However, it is anticipated that Viva will fly up to 100 planes in total within just a few years.
Viva Air isn’t the only carrier that is seeing opportunities to expand in Latin America. Chile’s two low-cost carriers have also announced expansions recently. Both Sky Airline and JetSmart are making the move into neighboring countries.
[Featured Image: Wikimedia/Primx28]
Well I think Colombian air travel will become much more competitive. A new CEO at AV from United will undoubtedly shake things up. Viva is OK if price is your only criterion but it's cramped and especially on longer routes, pretty hard going. I've been seeing excellent intra-Colombian fares on Priceline of late. Their Business fares are cheaper than Avianca's Economy ones!
I am also trying them. On a SMR BOG rtn 120000 pesos. 70% cheaper then L.A. and AV.
I am going to make my first flight on Viva this week. My family will travel from Medellin to Cartagena on Viva. I'm a OneWorld Emerald, but with the price difference between Viva and LATAM, even with paying extra for checked luggage and reserved seats, it's worth taking a chance on the low-cost carrier for a one-hour flight.