The destiny of Colombian ULCC Viva lies with unpredictable government regulators

The fate of the Colombian ultra-low cost carrier Viva has taken many twists and turns during the past year, and the only constant is that its future remains clouded in uncertainty.

Colombia's largest airline, Avianca, announced its plans to acquire Viva nearly a year ago, and now the government has backtracked on its initial decision to reject the agreement.

As Colombian authorities conduct a second review of the Avianca-Viva tie-up, both the South American ULCC group JetSMART and LATAM Airlines Colombia have expressed an interest in acquiring Viva.

As the approval process has dragged on, Viva has been navigating its own precarious financial state, and is now undertaking a voluntary 90-day reorganisation.