BOGOTA -- Colombia's No. 1 and No. 2 airlines have completed their agreement to merge operations starting May 20, controlling shareholders for the carriers announced late Thursday.

The airlines, Aerovias Nacionales de Colombia, or Avianca (E.ANC) and Aerolineas Centrales de Colombia, or Aces, have $800 million in combined revenues and will have a 67% market share.

Aces President Juan Emilio Posada will be CEO of the integrated business, though the airlines will maintain separate brand names.

"Both airlines were losing money on a stand-alone basis," said Jorge Cardenas, president of Fedecafe. The integrated business, he said, "should allow Avianca-Aces to return to positive and sustainable cash-flows."

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