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COSTA RICA |
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TACA And
Avianca Will Form The Leading Airline
Network
The merger of Grupo TACA ”TACA”,
Central America’s leading carrier, and
Aerovías Del Continente Americano SA, ”Avianca”,
Colombia’s leading airline, will capitalize
on two of the best known airline brands in
Latin America, two world-class product
offerings, strong hubs and complementary
networks, as well as to uniquely
entrepreneurial and service-oriented
cultures with highly motivated employees.
By leveraging the new group’s four hubs-in
Bogota, Lima, San Salvador and San José,
Costa Rica - Avianca and TACA will be able
to offer customers better service to more
destinations than any other carrier in the
region.
Employees will also benefit from the new
group’s greater geographical diversification
and stronger combined platform for future
growth and career development in the face of
a still challenging economic environment,
volatile fuel prices and intense
competition.
The merger, which is subject to regulatory
and other antitrust approvals, instantly
makes TACA Avianca one of the region's
largest arilines after Brazil's TAM and GOL,
with 129 planes and flights with more than
100 destinations.
But beyond its sheer size, the partnership
is bound to alter the regional business map.
Hours after the merger announcement on
Wednesday, Grupo AeroMexico, the holding
company of AeroMexico and AeroMexico
Connect, also said it would review
partnerships with local and global players
to help it face the global economic crisis.
Forming alliances may be crucial for the
survival of some regional carriers such as
the ones in Latin America at a time when the
worldwide recession punished the airline
sector, with companies and families sharply
cutting back on air travel.
According to the International Air Transport
Association, or IATA, airlines lost us$11
billion this year, forcing them to cut
costs, look for new sources of income - such
as charging for luggage - and form
partnerships to broaden coverage.
Under TACA and Avianca the merger
plan, the two privately held companies
initially will remain separate entities,
with Avianca's owner Synergy taking a
two-third stake in the new parent company.
TACA's shareholders will hold the remaining
third and generate annual sales of us$3
billion.
Roberto Kriete, TACA chairman and CEO, who
will serve as chairman of the new company,
noted, "Grupo TACA has long been a leading
force for consolidation and rationalization
in the Latin American airline industry.
Avianca CEO Fabio Villegas, who will be CEO
once the merger is concluded, added, "This
is a great day in the history of aviation.
We are bringing together two of the world's
oldest airlines, two institutions with a
unique focus on servicing their customers
and on the well-being of all their
stakeholders, to create an industry leader.
I look forward to working with all of our
employees as we execute on a vision to build
not only the biggest, but the best, airline
in the region."
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