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VivaColombia prepares for 2Q2012 launch as Irelandia ponders pan-Latin American LCC network

Analysis

Low-cost carrier start-up VivaColombia has adjusted its business plan ahead of its planned May-2012 launch and will focus primarily on stimulating demand on thin domestic routes. VivaColombia has selected Medellin as its base and is in the process of leasing an initial fleet of five A320s, having decided against pursuing fleet synergies with Mexican sister carrier and B737 operator VivaAerobus.

The Colombian carrier, which was provisionally known as La Nueva Aerolinea (LNA) until early this year when investment from VivaAerobus owners Irelandia and IAMSA was secured, had an initial business plan that envisioned sticking to trunk routes from a Bogota base. LNA was initially established over two years ago by four Colombian entrepreneurs, led by former Avianca CEO Juan Emilio Posada. It was initially awarded traffic rights last year for six domestic trunk routes. The cross-ownership in Mexican and Colombian carriers could be the early stages of a Viva-branded pan-Latin American LCC.

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