Avianca, Grupo TACA to merge under holding company

Colombia's Avianca and El Salvador-based Grupo TACA announced yesterday that they have reached agreement to merge under a single holding company, creating an airline group that will serve more than 100 destinations with a fleet of 129 aircraft.

Avianca parent Synergy Group will control two-thirds of the unnamed holding company while TACA will control the remaining third, with TACA Chairman and CEO Roberto Kriete serving as chairman and Avianca CEO Fabio Villegas as CEO.
The two privately held carriers combined generate about $3 billion in annual revenue and employ 12,000. The combined network will serve 75 Latin American destinations with hubs in Bogota, Lima, San Salvador and San Jose, Costa Rica. The transaction is subject to approval from relevant regulatory authorities.
In a statement, the carriers said, "Avianca and TACA will preserve their respective brands and continue to operate separately under a common strategic vision."
Kriete, whose family long has controlled TACA, said the merger will give the airlines "breadth and scale to better compete with any player in our markets while ensuring our long-term success." Villegas called the announcement "a great day in the history of aviation. We are bringing together two of the world's oldest airlines. . .to create an industry leader."
TACA COO Estuardo Ortiz will become COO of the new entity while Avianca CFO Gerardo Grajales will serve as its CFO. No timeline was given for closing the transaction.


source: ATW daily news