It looks like Avianca and Copa are gathering their troops for a fierce battle against Chile’s LAN. As now they are just exploring code share agreements, but knowing how dominant Avianca’s position in the market is one can foresee further mergers and acquisitions. Initially LAN intended to launch operations using Aeroasis as a cover up, in turn adding one more player in the small local market but swiftly decided Aires was a best bet and acquired it, reducing the number to only 3 important airlines. Now LAN has not only Aires but also all Aeroasis’ approved routes, this makes the Chileans a bigger treat than they were just a few months ago and their two immediate competitors are more than just worried.
So how far will Avianca and Copa go to stop LAN from getting a bigger piece of the cake? I remember some years ago Avianca merged with ACES only to consolidate Avianca’s position, at the end ACES disappeared along with their staff except for one person, ACES CEO’s. The sneaky bastard sold every single one of Aces employees for a chair in the new merged airline, Summa, remember? Can Villegas and Junguito be planning SUMMA part 2?
ALTA 2010: Avianca and Copa Colombia explore cooperation