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VivaColombia adjusts strategy to focus on Bogota, domestic trunk routes and international services

Analysis

Colombia's only low-cost carrier VivaColombia is planning to accelerate expansion in 2014 with the launch of international services and several domestic trunk routes. The carrier, which did not add a single aircraft to its fleet 2013, is keen to grow its domestic market share to at least 20% from about 9% currently. But the biggest opportunities could be in Colombia's international market, which remains un-penetrated by LCCs with the exception of services to the US.

VivaColombia is poised to become the first Latin American LCC to serve Panama and Peru. Services to Mexico are also likely as VivaColombia looks to start pursuing synergies with Mexican sister carrier VivaAerobus.

VivaColombia and VivaAerobus are both partially owned by aviation investment firm Irelandia, which aims to establish other Viva affiliates in Latin America. Irelandia sees huge opportunities in the region's LCC sector, which is now limited almost entirely to domestic operations within just three countries - Brazil, Mexico and Colombia.

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