Under the Presidential Decree 2113 of 2022, a contract was signed between the UNGRD and the company Impoamericana Roger S.A.S., which delivered the vehicles in November of 2023. As of today, the trucks remain parked at two military bases: one in Uribia and another in Riohacha, both towns in the arid Colombian department of La Guajira. The vehicles cost more than $46.8 billion pesos, over $20 billion pesos more than the market price of the trucks.

Allegations are that the inflated contracts were issued to purchase the trucks from Impoamericana Roger so that the overpayments from the government were used to contribute to a giant slush fund used to bribe legislators and other politicians, to buy support for Petro’s legislative agenda, that has struggled to gain support from Colombia’s congress. Even worse, the looted funds were in part, earmaked to bring water to children in Colombia’s neglected La Guajira region literally dying of thirst from the severe drought earlier in the year.

This scandal exposed a whole criminal operation orchestrated by those involved to loot the entity’s resources, though bag-man Olmedo Lopez insists that President Gustavo Petro was unaware of the massive scheme involving multiple segments of his administration.

Sneyder Pinilla and Olmedo López. Key figures in this controversy. Photo: UNGRD

What has happened:

September 2023:

The company that bought the water tanks, Impoamericana S.A.S, was previously owned by Elmer Francisco Celis Domínguez.In September 2023, one month before closing the deal for the tanker trucks, Celis Ramírez was murdered in Cúcuta by hitmen who stole 13 million from him in the Parque 300 Años. The victim had appointed Roger Alexander Pastas Fuentes as manager, who is the current legal representative and ‘sole owner’ of the company that sold the tanker trucks.

It was under Celis’s leadership that Comercializadora Agrodomínguez S.A.S. changed its corporate name to Impoamericana Roger S.A.S. During this period, the company also expanded its business activities, as noted in its Unique Business Registry (Rues).

February 2024:

March 2024:

April / May 2024:

June / July 2024: 

The Cerrejón coal mine owned by Switzerland-based Glencore, is the largest economic actor in Colombia’s La Guajira department in the far Northeast of the country near the Caribbean Sea and the Venezuelan border. The open-pit Cerrejón mine has had its share of controversy, with many local people, including the indigenous Wayúu opposing the mine, while others support it and depend upon it for their livelihoods.

During the 2024 Minexpo mining industry event organized by industry trade group Asociación Colombiana de Minería, or the Colombian Mining Association, Juan Carlos García Otero took the time to speak with Finance Colombia’s Executive Editor Loren Moss for a brief but intense interview where nothing was off limits.

Garcia, who is Cerrejón’s social affairs manager, spoke about the mine’s record regarding social and environmental responsibility, touching upon coal’s role in the global energy transition.

Loren Moss: Well, I am here with Juan Carlos García Otero. Thank you for your time. Here we are at MinExpo in Medellín. Tell me about your role and about the company you represent.

Juan Carlos García: Thank you so much, Loren. My name is Juan Carlos García Otero, I am the social affairs manager at Cerrejón. My area is in charge of securing the social license for operating our mine on La Guajira, for the benefit of all the people in that department, but also of the people in this country.

Loren Moss: Well, Cerrejón is, I think, the largest operating mine in Colombia. It’s a coal mine in La Guajira. Tell me, how many employees do you have?

Juan Carlos García: Look, maybe I should clarify that our measurement is not necessarily based on the size. The biggest and most important thing we have, that we are sure of, is that when it comes to people we are the largest. Why? We have over 12,000 employees, between direct ones and contractors, who are linked to the company and make all the development of their own lives and families through the mining operation in Cerrejón. So, in that sense, we are strongly convinced of the importance and significance it has for the department that that work connection happens.

Loren Moss: Because it’s the largest powerhouse in that region of Colombia — from Valledupar to the Atlantic coast — I cannot think of a company with more local economic impact. Tell me please, in general terms, about the importance for the economy of department capital Riohacha and La Guajira.

Juan Carlos García: Cerrejón represents between 55%-60% of the department’s gross domestic product. In that sense, we are a fundamental cornerstone of the development of the region. But we also signify over 105 billion Colombian pesos in social investment that we have done throughout last year through commitments and voluntary and mandatory executions.

We have had over 60 million liters of water delivered to a region that still needs additional efforts in order to provide water for the whole population, and in which we have increased in the last year almost 50% of that volume that we delivered.

We are a fundamental part, with over 11 billion pesos delivered in taxes and royalties, which represent almost 50% of what is delivered by the entire mining industry in Colombia. And in that regard, we leverage the whole country’s development in a fundamental way.

In that sense, I think we truly are protagonists of the development of the region and of Colombia.

Loren Moss: I visited the area on a trip. I was not there for anything related to your company but I stayed at your hotel. That hotel is wonderful — with a view of the mine in the distance. Really, it’s like the best hotel in the region. We went to visit Manaure. Anyway, another thing I noticed when we visited some rural villages — some Wayúu people — is that there was not even a mobile signal or electricity. You are not the power company and you are not the phone company. But apart from the employment and everything, can you tell me about the contribution you offer to the region?

Juan Carlos García: Look, a few things to tell you: The first is that the hotel is not ours, we promoted the arrival of investment for that hotel to be built, and we have a small participation that serves a social purpose in its development. We are basically leveraging tourism, we are strengthening the development capabilities of the community from that area, so that they can get to know the region — besides the existence of Cerrejón. La Guajira is a department worth getting to know, and we are aware that we need to make contributions and to leverage others’ investments to make that happen.

Now, you said you got to know communities, and you say they are not related to us. But they are! And, actually, if you look at exhibits at this exposition, we can see there are communities that we have brought here. Because part of our effort is to generate capabilities and development so that those cultural, productive, and employment activities can happen in the department. And so that people can offer their products in a direct way with better commercialization. So, what we do there is strengthen those capabilities.

When it comes to development, our contributions are focused on facilitating that the different actors — governmental in this case, when we are referring to energy matters — can carry out their functions. In that regard, we have been part of the solution, contributing with our assets to problem-solving, like in the case of Uribia. At this moment, we have some preliminary agreements that allow us to facilitate the access to Cerrejón’s power line, for the improvement of the power in that municipality. And in Manaure as well.

Additionally, we have facilitated our resources to achieve the connectivity of a very important area, the harbor area and Cabo de la Vela, to the national electrical system. If that construction had not been done with Cerrejón’s assistance, those communities would probably not have achieved that — or not have been on the path to attaining such development — through the ultimate entities responsible, the state and the local operator.

So, what do we do? We incorporate ourselves into the solution. We are aware that we are not the solution. But we are more aware that we are part of the solution that can be achieved in La Guajira.

The entrance to 2024 Minexpo, the largest annual gathering for the mining industry in Colombia. (Credit: Loren Moss)

Loren Moss: Well, you are doing really necessary work. It’s needed. There are many places that depend on coal, but long-term, in many places — including the president here in Colombia — they do not see it as an ultra-long-term thing. What is your position as a producer of a product that is necessary now for the short and medium term? And when talking long-term, what is your plan as a company? What is the long-term environmental plan, so it can be successful as a business — but also make long-term contributions with everything that‘s changing in the environmental setting?

Juan Carlos García: I understand. Look, I think that you are touching on many variables that would not be responsible of me to address. Because I am not the one managing them. I am not the one managing the world’s energy matrix. I am not the one who defines how the production of energy will be managed — or how it will be managed in other places.

I cannot give you an answer in that sense. But what I can make totally clear for you is that we, today, have a commitment — and it is to make the most of the entire Cerrejón operation from the standpoint of the people. Meaning, on the basis of the people being able to understand the opportunity that a mining operation represents in an area that needs development. And we need to leverage that effort so that they, when coal stops being part of their reality definitively — a part of their environment — whenever that may happen, they have the alternatives. They will have visualized the options and have built a future leveraged on this reality today that allows us to help them the way we do.

Loren Moss: Here at the event, at MinExpo, we have members of the Wayúu community. Some are producers of dairy, artisans, and musicians. As a big sponsor at this MinExpo event, tell me about the activities you do to promote the development of not only the Wayúu people, but also for all the people who live there in the local area and La Guajira?

Juan Carlos García: Well, look, I believe you would need a show with many episodes for me to tell you everything. But I am going to tell you about only some of the things we do, and I will try to do a run through things we have here.

I want to start off with the musicians. We have an orchestra here, and we do a great amount of work so the guys stay away from vices — from drugs, from activities that are not positive — and connect with music from the point of view of their tradition and their culture. We try to make it possible for music to be a job alternative, like it is for over 50 guys who have been in the orchestra and today do that job professionally. That is part of what we believe in.

We also support sports. We have a huge commitment to strengthening football [soccer] — a sport that is valued and appreciated in La Guajira — and of a championship that we sponsor — and from which [Colombian and Liverpool FC superstar] Luis Díaz came out. You’ve probably heard of him and he has been in those championships.

We continue to believe that strengthening those spaces is useful — not only because of what it signifies, like stories as important as Luis’ — but for the amount of people that distract themselves with sports and what it represents for their lives and their health.

We support enterprises. We support companies. We have companies that develop their company objectives through the direct hiring from Cerrejón so that they are able to generate economy, employment. and sustainability — as well as gain experience in the world of business and trade. They learn hand in hand with a company like Cerrejón.

Then there the artisan crafts. A few years ago, the artisans only produced the supplies, and they would sell it to third parties that were the ones earning the profits. We have been working on strengthening the designs, strengthening entrepreneurship, strengthening the capabilities — and that allows them to make the sales themselves. We take them to every fair event that we can, and they make their own sales directly. That has led, for example, to them surpassing over 100 million pesos in sales last year at the Expoartesanías fair in Bogota.

We have also worked on the culture. We build hand in hand with the communities, including Wayúy and black people in that territory, and that is are very valuable and they teach us very important things. But we also need to highlight their language, their traditions, understand them, and co-exist with them.

That is just part of what we do. Here, at the fair, we have brought only a small sample. But, without a doubt, if we get the chance we can tell you about it in greater detail later on.

The capture in Colombia of a leader of a faction of the Venezuelan mega-gang, Tren de Aragua, has highlighted the organization’s little-known role in drug trafficking.

Photo: Colombian police arrested Carlos Antonio López Centeno, alias “El Pilo,” and 10 other Venezuelans in Riohacha. (Credit: Policia Nacional de Colombia)

Colombian police arrested Carlos Antonio López Centeno, alias “El Pilo,” along with ten other Venezuelans in the municipality of Riohacha, La Guajira department, in northern Colombia, on March 9.

Investigations by Colombian police and prosecutors showed that the group planned to pick up 3 tons of marijuana that they intended to traffic across the border to Venezuela. Police also seized multiple weapons, grenades, an armored vehicle, and 10 kilograms of marijuana during the arrest.

“This criminal group is directly associated with the Tren de Aragua, a criminal outsourcing that is trying to enter the country to traffic drugs from the north of the country … to Venezuela,” said Nicolás Alejandro Zapata Restrepo, deputy director general of the Colombian National Police, at a press conference.

El Pilo was a well-known member of the gang. He had been held in Tocorón, the infamous prison in Venezuela’s Aragua state that served as Tren de Aragua’s center of operations until it was taken over by Venezuelan security forces in September 2023. From the prison, he oversaw the coordination of the organization’s clandestine operations in Güiria, a coastal town in Venezuela’s northeastern state of Sucre.

InSight Crime Analysis

The exposure of Tren de Aragua’s business on Colombian soil indicates that the gang’s criminal portfolio in the region is expanding, especially its involvement in large-scale drug trafficking.

Although authorities and intelligence reports accessed by InSight Crime confirmed the gang’s involvement in drug trafficking, there have been no previous prosecutions, nor suggestions, that it is involved in the trafficking of such large quantities of drugs.

In Sucre, Tren de Aragua’s operations have consisted of monitoring vessels smuggling people and drugs, extorting money from local merchants and producers, and finding human trafficking victims.

A local lawyer who asked not to be identified for fear of reprisals explained to InSight Crime that the group also provides security services to drug boats.

However, the discovery of the plan to traffic 3 tons of marijuana is a game-changer in the gang’s criminal development, providing evidence of its steps into the regional drug trade.

According to the 2023 anti-drug report by Venezuela’s National Anti-Drugs Superintendence (Superintendencia Nacional Antidrogas – SUNAD), the Paria Peninsula in Sucre is under the domain of the Tren de Aragua and has become a key maritime corridor for the transnational transfer of drugs coming from Colombia, specifically from La Guajira.

The trafficking of marijuana from Venezuelan shores has been increasing in recent years. In 2022, a 1.5-ton shipment of marijuana that had come from Venezuela was seized in Martinique.

This article, produced by the Venezuelan Investigation Unit, was originally published by InSight Crime, a Medellín-based foundation dedicated to the investigation and analysis of crime and security in Colombia and Latin America.

Photo: One of the seemingly never-ending sand dunes extending from the Caribbean Sea in La Guajira, Colombia. (Photo credit: Luis Pérez)

Of course, natural wonder is just one unique aspect of a place that continues to retain the cultural traditions of the Wayuu people and other indigenous communities that have lived on these lands for millennia. Known by all for their colorful handmade “mochila” bags that now adorn shoulders of Colombians throughout the world, the Wayuu heritage — and their ongoing struggle for land rights, equality, and cultural preservation — is embedded into daily life across the area.

While many Colombians — let alone foreign tourists — have yet to experience this unique and fascinating department, Zharick Alvear of local travel agency Solera Travels explains that visiting La Guajira is actually quite easy. And the payoff is more than worth the trip. “Everyone who comes to La Guajira falls in love with its culture and landscapes,” she said.

To share even more, the area expert sat down with Loren Moss, executive editor of Finance Colombia, to talk more about the area and make the case for why everyone should put La Guajira near the top of their Colombian bucket list.

Zharick Alvear of Solera Travels, a travel agency in La Guajira. (Photo credit: Loren Moss)

Loren Moss: Colombia has been growing in tourism for years and there are now many people who visit Cartagena and Medellín every year. But what about La Guajira? Why should someone visiting Colombia know about and visit La Guajira?

Zharick Alvear: Visiting La Guajira is a fascinating experience. It’s different. It is a department that has all of the temperate levels.

La Guajira is divided into three zones — low (Baja), middle (Media), and high (Alta) — and each one has completely different characteristics. In La Guajira, you will find culture, nature, and also many activities, such as nautical sports and bird watching.

It truly is a little-known department that is worth knowing — and worth promoting! Because everyone who comes to La Guajira falls in love with its culture and landscapes.

That’s the invite to visit it.

Loren Moss: If someone goes to visit La Guajira, what are the recommendations when it comes to experiences, activities, and even lodging? I think some people worry because its small in terms of population and lesser-known — and maybe they just don’t want to get lost. What are you recommendations to have the best time?

Zharick Alvear: Well, the main thing is to travel with a travel agency because we really are the ones that know our region. We have the knowledge to tell people, “Look, don’t go to this area at this time of night.” We are the ones that can give those kinds of recommendations here in the territory.

Alta Guajira is Wayuu territory, which is made of “trochas” of roads, where there’s no pavement yet, so the ones that truly know the territory are the drivers, many of them from the Wayuu [indigenous community]. So you will go with someone that knows the roads, knows the area, and most of all can speak the dialect — the wayuunaiki tongue — with the people that you will come across in Alta Guajira.

But, in general, the capital Riohacha and La Guajira are very well connected. You can get there by air, with Avianca, and now we have connections with Bogotá, Medellín, and Cali. As far as land routes, Santa Marta is only two-and-a-half to three hours away. Barranquilla is four hours, and Valledupar is three hours away. So we are very well connected to visit through all these ways.

Loren Moss: Yeah, I think my first time, many years ago, I went in a small bus from Santa Marta. We went to see nature with some Wayuu friends who were very well-known, so we didn’t have any problems because there was a connection with the community. It was a really nice time. You’re from the region yourself, too, right?

Zharick Alvear: Yes, I’m from La Guajira. I’m Riohachera. My name, Zharick, is Arab from the Maicao mosque, because even in Media Guajira we have a lot of Arabian influence and culture. So my name comes from the mosque, and it’s a pretty interesting cultural mix because even my parents aren’t from La Guajira as such. They come from Cesar and Bolivar.

Loren Moss Moss: How can people get in touch with you or your agency if they want to come and see the beauty and culture of La Guajira for themselves?

Zharick Alvear: My agency is Solera Travels, and the website is SoleraTravels.com. You can find us on our Instagram @soleratravels and the same at Facebook.com/soleratravels. Or you can even reach out at the contact number +57 (316) 525-1301.

This interview has been edited for length and clarity.

The additional flights and service will lead to an increase of 1,200 jobs as well as 600 more “indirect jobs,” according to Avianca. Some of the hiring will include former employees of Viva Air, which went out of business after a merger with Avianca fell apart earlier this year, according to Reuters.

The new planes, which belong to the Airbus A320 line (reportedly including 14 Airbus A320 NEO and two Airbus A320CEO models) that already makes up the vast majority of Avianca’s fleet, are planned to help expand service to 20 locations in Colombia and 10 international destinations.

Specifically, the Bogotá-based carrier stated it plans to make the following schedule changes throughout the higher-traffic end-of-year calendar:

• San Andrés: The island tourist getaway will now receive 53 flights per week (from Bogotá, Medellín, and Cali), an increase from the current 30
• Villavicencio: The capital of Meta where connectivity has suffered greatly since a earthquake disrupted a key roadway in August, will now have two daily flights from Bogotá instead of just one flight
• Riohacha: The capital of La Guajira will now have 28 weekly flights from Bogotá, up from the current 20
• Leticia: The capital of Amazonas will now have 18 weekly flights, up from the current 10 operations
• Pasto: The capital of Nariño will now have 42 weekly flights, up from the current 25
• Ipiales: The Nariño city near the border of Ecuador will now have on daily flight, up from the current schedule of four flights per week

Medellín, Cali, Cartagena, Barranquilla, Pereira, Santa Marta, Cúcuta, Bucaramanga, Montería, Valledupar, Armenia, Barrancabermeja, and Ibagué will also “benefit from more flights and more seats” in 2023 following the new investment.

In terms of international destinations, Avianca has identified the following locations as places that will see an increase or addition of service: Boston, Curacao, Fort Lauderdale, Guatemala City, Guayaquil, Orlando, Panama City, Punta Cana, San Salvador and San Juan.

The major move from Avianca comes on the heels of two significant low-cost carriers — Viva Air and Ultra Air — exiting the market in Colombia, leaving a gap in offerings over the past year.

“Now, we double our commitment and add more people to our operation, more capacity with more planes, more seats, and more connectivity to help Colombia recover and strengthen,” said Adrian Neuhauser, CEO of Avianca, in the investment announcement.

Photo: An Avianca Airbus A320. (Credit: Avianca)

Both airlines state that a concentration of prime slots (landing and takeoff rights, and access to boarding gates) at Bogotá’s overcrowded El Dorado International Airport would be bad for passengers, bad for competitive pricing, and bad for competition in the Colombian aviation market. Presumably it would be bad for competing airlines as well, as Avianca or its holding company would directly control slots during prime hours.

Not only does this mean that business travelers to Bogotá from around Colombia, who when possible fly in and out within 24 hours, would limit their choices to Avianca-controlled slots, but competing airlines would find it difficult to schedule connections through Bogotá: for example, a passenger flying from Cali to Riohacha, while connecting through Bogotá would not be able to enjoy reasonable connection times on airlines other than Avianca, or possibly an Avianca-controlled Viva.

Jetsmart today issued a statement regarding the matter stating (translated by Finance Colombia):

As an interested third party and after a detailed analysis of the consequences that the integration of Avianca and Viva Air may have on the market and users, Jetsmart filed an appeal with the Colombian Civil Aeronautics Authority (Aerocivil).

Without prejudice to sharing the position taken by Aerocivil, while the entity ordered conditions to the transaction, Jetsmart presented the appeal in question, on the understanding that these conditions do not fully mitigate the damages that the integration of Avianca and Viva Air may cause for the market and especially for new entrants.

In line with the above, Jetsmart:

1. 1. 1. 1. Insists on the need for Aerocivil to regulate the reallocation of slots (take-off and landing rights) in order to guarantee the competitiveness of the sector, since allocating slots is equivalent to allocating market shares, especially at El Dorado Airport in Bogotá.
         2. It is important that access to slots to take place on a timeline and form that allows new operators to access the bands of greatest demand, thereby strengthening competition and supply to users.
         3. It emphasizes the need for Viva Air to return all the slots assigned to it prior to its cessation of operations.

Latam issued a statement stating (translated by Finance Colombia):

Based on the decision of the Civil Aeronautics of Colombia to approve the integration of Avianca and Viva Air with conditions, Latam Airlines Colombia carried out a rigorous analysis of the decision to understand its scope and effects in the Colombian market.

As a result of this analysis, we see that the authority made progress in establishing some measures, aimed at protecting the passengers affected after the suspension of Viva Air operations on February 27.

Despite the above, Latam Airlines Colombia considers that still in the conditioning of slots (takeoff and landing slots) at El Dorado Airport it is necessary to define some criteria and elements in such a way that inefficiencies are not generated in their use, which could reduce the effectiveness of this measure as a remedy for the anti-competitive effects of integration. To this extent, the company, as an interested third party, has decided to file an appeal with the objective that the aeronautical authority can take these considerations into account in a second instance of the process in such a way that the capacity of the existing infrastructure can be optimized, generating growth opportunities for other operators for the benefit of the passenger.

It is worth noting that, despite Viva Air’s suspension of operations for more than a month, this airline has not yet formally returned the slots at El Dorado Airport to the aeronautical authority. In this sense, to date there has been no reassignment of structural slots to other air operators.

At the same time, Latam Airlines Colombia will continue its work to offer connectivity alternatives for the country as it has been done up to now. In this sense, as a result of the situation in the aviation sector, five Airbus 320 aircraft were incorporated, representing an additional 210,000 seats per month and a 20% increase in the supply in the Colombian market. Likewise, it has hired 220 Viva Air workers, including pilots, cabin crew and maintenance technicians, who today are already attending to the additional capacity that Latam Airlines Colombia incorporated into the country.

This new offer has been oriented to attend to the cities with the greatest impact and that have special relevance for the tourist activity of the country, such as San Andrés, Santa Marta, Cartagena and Pereira. Along the same lines, on March 28, [Latam’s] Bogotá-Riohacha route began operations with seven flights a week. In addition, a new offer has been generated for the business tourism segment, key to the country’s economic activity, in cities such as Medellín, Barranquilla, Cali and Bucaramanga.

Specifically in San Andrés, in addition to the Latam Airlines Colombia operation of nine daily passenger flights to the Island, Latam Cargo Colombia made eight flights during the month of March with a Boeing 767 cargo plane, which transported more of 97 tons of supplies, with a view to meeting the island’s supply needs at this juncture.

Regarding the situation of the sector, Santiago Álvarez, executive director of Latam Airlines Colombia, maintains that “these have been turbulent times for the Colombian airline industry. However, the ability and decision of operators such as Latam Airlines Colombia to protect the connectivity of Colombia and maintain alternatives to the consumer was demonstrated.”

For context, almost exactly a year ago, the shareholders of Avianca joined with the shareholders of Brazilian airline Aerolinheas Gol to create a holding group called Abra, and also purchased Viva from Irelandia Aviation and minority shareholders. Colombian regulators didn’t take kindly to the deal being done before seeking prior approval from aviation and competition regulators, and several months later, denied the merger.  Meanwhile, like an airline stuck in a holding pattern running low on fuel, Viva no longer had access to additional capital, leading to its insolvency and cessation of operations in February of this year.

Last month, after Viva began losing planes to lessors and key employees to competitors, Aerocivil reversed its decision and approved the merger under strict terms to protect competitivity in the Colombian domestic aviation market. Meanwhile, it also approved the market entry of Chilean aviator Jetsmart for domestic routes in Colombia, and saw the collapse of Colombia’s other low cost airline, Ultra Air; also founded by aviation entrepreneur William Shaw, the founder of Viva.

Avianca issued a statement this morning saying that in order to preserve the jobs and aircraft left with Viva, it asks to retain a certain amount of the competitive slots from Bogotá’s crowded El Dorado Airport, and to focus Viva’s El Dorado destinations on the Colombian destinations of San Andrés, Leticia, Santa Marta and Riohacha.

San Andrés is a Colombian Caribbean archipelago and popular vacation destination that has been devastated by the collapse of low cost carriers Viva and Ultra. Tourism is down over 70% due to the loss of connectivity, causing a local economic crisis.

Santa Marta is a small city on Colombia’s Caribbean coast that serves as a popular alternative to Cartagena, with more ecotourism and ethnotourism alternatives. Riohacha is a small city in Colombia’s extreme northeast, near the Venezuelan border, and Leticia is a small, remote city in the southeast on the banks of the Amazon River adjacent to Colombia’s borders with Brazil & Perú.

Avianca said in a statement today (translated by Finance Colombia):

Within the framework of the integration request between Avianca and Viva that began more than eight months ago, after reviewing in detail the conditions set forth by the Aerocivil, Avianca filed appeals in which it requests clarifications and specific modifications that allow the conditions to be viable and applicable in light of the current reality of the country’s air market and that really make the operation of the low-cost airline viable.

In the current context of the Colombian air market, it is essential to activate quick solutions that give stability to the system and avoid further damage due to the loss of planes, routes or jobs that still depend on the Viva airline. For this reason, the resource seeks, among other things, that Viva can sustainably operate a minimum number of planes from El Dorado airport, while opening up ample space for airlines that want to fly to and from Bogotá. Additionally, it is offered that Viva’s operation during peak hours is focused on regions that require broad connectivity such as San Andrés, Leticia, Santa Marta and Riohacha.

Regarding the protection of passengers, Avianca accepts, in general terms, the conditions aimed at protecting passengers affected by the temporary cessation of Viva operations, including those who had purchased ‘Cuponera Viva’ [prepaid  flight coupon books] with the low-cost [carrier].

In this regard, Adrian Neuhauser (above photo), President and CEO of Avianca said: “The purpose of the resource is to guarantee the minimum conditions to be able to operate what remains of Viva and thus preserve connectivity in the country and the offer to passengers. Since day one we have proposed solutions and protected hundreds of thousands of affected users. We emphatically reject the insistence of some competitors to hinder the process with the sole purpose of making what remains of Viva disappear. 

Taking into account the urgency of the affected users to solve their situation, as well as the need for stability in the Colombian aeronautical sector, we trust that Aerocivil will analyze the clarifications in light of the current reality of the low-cost.”

Finally, Avianca highlights that, seeking to preserve the stability of the sector, it has led the protection by relocating more than 100,000 Viva and Ultra users free of charge, -86% of the total passengers of both airlines-, being the only company that has sustained the relocation of affected users at no cost.

]]> https://www.financecolombia.com/colombian-minister-of-transportation-speaks-out-on-viva-situation-government-actions/ Thu, 02 Mar 2023 18:12:21 +0000 https://www.financecolombia.com/?p=26106 After Colombian low cost carrier Viva ceased operations leaving thousands unemployed and tens of thousands of travelers stranded, Colombian government officials had an urgent meeting on Thursday to ascertain the situation and determine appropriate steps on the part of the government. Afterwards, they held a press conference to summarize discussions for the public. Finance Colombia presents the transcripts below.

 Guillermo Reyes: Good afternoon everyone, in the meeting held with the Mr. President of the Republic, the Director of Civil Aviation, the superintendents of Industry and Commerce of Transportation, the vice-minister of Infrastructure, the presidential adviser, and the delegated superintendent for the consumer protection, we can say that we arrived to the following conclusions that we share with all of the Colombian people.

In the first place, we made a revision aimed, as arranged by the Mr. President of the Republic, at how the state, the national government, must guarantee as its priority the protection of the over 460.000 passengers in tickets and reservations that have been acquired in this year 2023. For the month of March alone we have over 230.000 tickets already acquired by passengers, and it’s one of the main focus points considered in this meeting.

In the second place, the “World Power Government of Life,” the Government of Change, President Gustavo Petro restates that his priority is the protection of the rights of users and workers of aerial transportation, in this case, the Viva airline.

In the third place, in this sense, the Civil Aviation, the Superintendence of Industry and Commerce, and the superintendence of Transportation, will continue to evaluate the measures that each, on the exercise of their respective powers, must take to protect the aforementioned rights.

In fourth place, the Superintendence of Industry and Commerce is at this moment in 19 airports of the national territory, where there have been difficulties with passengers that have not been able to fly because of Viva’s decision, offering an orientation to all affected passengers. And through the exercise of its jurisdictional functions, in the following hours will begin to proclaim the first verdicts about the requests of these affected passengers, as well as the precautionary measures that may consist of the rearrangement of passengers in other airlines, refund of the money spent in tickets, and the guarantee of providing food and lodging to these passengers while they are moved to a flight offered by other airlines in response of Viva’s suspension of flights.

In fifth place, today the superintendence of Transportation has initiated and communicated to the public opinion an administrative investigation against Viva, dictating an administrative order to go through with the obligations generated by the contract of transportation, as part of the protection of users’ rights, for which they have been given three days to fulfill. In the same vein, this superintendence will push forward for the rest of the proceedings to take place.

Sixth, Civil Aviation will continue its process of revision of integration as solicited by airlines Avianca and Viva within the due administrative process, and with a clear proposition for the protection of users of aerial transport, and the over 1700 workers of Viva airline. The line of our President, of our Government of Change, is the protection of users and the protection of workers.

Seventh, we will continue the task of accommodating, as was arranged yesterday when the director of Civil Aviation put together and integrated the position of unified command, comprised of the management of said entity, and the representatives of the different airlines, in all available offers, so all available seats in those airlines may be taken by passengers of Viva. Today we will concentrate on the critical focus points, where Civil Aviation is already taking immediate measures, in particular the air terminals of Santa Marta, Ríohacha, and San Andrés. The position of unified command will be giving in the following hours the available measures and flights. Yesterday, out of more than 17.000 passengers, over 10.000 were moved to different flights and managed to get to their destinations.

Finally, this Minister, in virtue of the faculties of intervention as mentioned in article 32 of the law 1340 of 2009 with competition rules, warns that we are considering the option of taking measures, as many as necessary, so aviation market players are committed to continuing to operate in conditions that benefit the users of aerial transport. They are the necessary actions that may, if needed, reach intervention in the market, to protect the users and guarantee the conditions of balance and efficiency of the market of aerial transportation. Mister Director.

Roberto Bossa: Thank you very much, everyone. Once again I apologize to the passengers for a situation that was induced and surprising for Civil Aviation. As well said by the Mr. Minister, this is an act of government authority among all the authorities here present. The authority of competence and consumer protection, the superintendence of Transportation and Civil Aviation, within their jurisdictions.

In this vein, Civil Aviation has arranged a Permanent Emergency Committee, or PMU, where requests are being met and all events to move passengers are being coordinated, for all those affected in this situation we are facing today. Like yesterday, we count on the collaboration and compromise of both the airports and aerial transports to achieve this goal, as we managed to evacuate the affected parties to Argentina, Peru, and we are doing the same with a series of national airports. The size of the fleets offered may change in some instances, to ensure greater seat availability for operators in some destinations, to be able to transport the people waiting to get to their destinations at this moment.

Likewise, it is an action of authority from the government, the complete authority, as said by the Minister, from its capacity to intervene in the market, and the Constitution that protects markets and allows these state actions, and the Civil Aviation, in this case, attending each airport; with special gratitude to the SIC that has placed permanent consulting in airports so each passenger present can be advised in their respective demands, and this way offer a rapid verdict. So they can solve, individually if they wish, each of the situations and will be moved shortly.

The superintendence of transportation has helped and has been with us in airports, and has been with us in the requirements and the measures it has been exercising, both with Viva and the entire sector, so it can move forward in the solution of this crisis. Likewise, the Ombudsman Office, Home Office with its management, and everything related to the efforts of the local mayors and governors to serve the affected community. This is an immense mobilization in solidarity with the passengers, elucidating they are not alone, and that in each airport, all these authorities in cooperation are protecting their rights, finding solutions, or offering relief in whatever they may need to deal with the situation that the country and the aerial transport is facing today.

Viva CEO Félix Antelo.

Of the 14 domestic routes that started operations, five are completely new destinations for Viva: Valledupar, Neiva, Pasto, Villavicencio, and Armenia. Also, Viva will be flying from its Medellín hub to Pereira, Armenia, Villavicencio, Valledupar, Riohacha and Pasto. From its Cali air base, it will fly directly to Monteria for the first time. As for Cartagena, new routes connect the coastal city with Villavicencio, Cúcuta, Armenia, Pasto, and Neiva. Viva also now connects Bucaramanga with Santa Marta, and finally San Andrés directly with Pereira and Armenia.

“The start of our ‘Vuelta a Colombia’ with the 14 domestic routes, evidences our constant growth and the desire to bring air inclusion to every corner of the country. This is just a sample of what our domestic and international expansion plan will be. We foresee the opening of 30 more international routes in the next years. This start of operations is possible thanks to the work as a team that we carry out with authorities, local tourist entities and key players, who facilitated the growth of our route network and, with this, they allowed that through Viva the travelers could go through all of Colombia. We are proud to continue opening opportunities and destinations for flying more,” said Félix Antelo, president & CEO of Grupo Viva.

Cali, Colombia — Cancún, México

On March 22, Viva started flying to Cancún, México from Cali, Colombia, adding to its connectivity from Medellín and Bogotá to the popular Méxican beach destination. The new Cali route will have three weekly flights from Cali starting at $159, and as low as $109 each way, originating from Mexico. Viva expects 50,000 passengers on this route its first year, and the “Viva Effect” should lower competitors’ prices as much as 30%, says the airline.

“The official start of this international route shows that our commitment to Cali is overwhelming. We know that this destination has had an excellent reception by Colombian and Mexican travelers, and that it will favor the tourism, business and economic development of both countries. Today we connect these two cities that in turn will provide the possibility for travelers to visit many more destinations in our network of connections in Colombia, Central America and South America,” said Antelo.

Cali – Cancun

• Three flights per week: Tuesday, Thursday and Sunday.
• Start of operation: 22 March 2022.
• Expected passengers per year: 50,000
• Final price each way from Cali: $159 USD
• Final price each way from Cancun: $109 USD
• Viva Effect: reduction of market rates by 30%

Armenia — Medellín, Cartagena, San Andrés

Starting the week of March 25, Viva began flights connecting the city of Armenia, Quindió in the heart of Colombia’s coffee country, to the major cities of Cartagena and Medellín, along with direct flights to the idyllic Colombian Caribbean archipelago of San Andrés. These new routes fit with Viva’s avowed strategy to be ‘The King of the Beaches.’ Viva expects the two new routes to Cartagena and San Andrés will take 100,000 travelers to these maritime destinations in its first year of operations, while the Medellín – Armenia route is expected to transport more than 66,000 passengers in its first year of operations. The Armenia-Medellín connection is designed to mesh well with the flight schedules to Lima, Cancun, Mexico City and Punta Cana, in order to facilitate connections to these destinations for travelers from the “Eje Cafetero” (Coffee Country).

“At Viva we consider that the Eje Cafetero is a fundamental territory for the growth and tourism development of the country. We want to reach the region to continue betting on air inclusion, and we believe that our Super Low-Cost model represents an excellent option for everyone when traveling inside and outside the country,” said Antelo.

Cartagena – Armenia

• Weekly frequency: Monday, Friday and Saturday.
• Start of operation: 25 March 2022

Armenia- Medellin

• Weekly frequency: Monday, Wednesday, Thursday, Friday
• Start of operation: March 28, 2022

San Andrés – Armenia

• Weekly frequency: Wednesday and Saturday.
• Start of operation: 30 March 2022.

Pastó — Medellín & Cartagena

Last week, Viva also started flying jet service between the southwest Colombian city of Pastó, Nariño with Medellín and Cartagena, three times a week, and rates as low as $134,000 Colombian Pesos each way; about $36 USD.

Viva says it expects these Pastó connections to carry 100,000 passengers in its first year, connecting for the first time the southwestern city with Caribbean beaches. Viva says it is also reaching out to local tour operators and travel groups to develop long term relationships in order to develop Nariño’s tourism industry.

 Cartagena – Pasto

• Weekly frequency: Tuesday, Friday, and Saturday.
• Expected passengers per year: 50,000
• Fare from: COP 143.429

Medellin – Pasto

• Weekly frequency: Tuesday, Thursday, and Saturday.
• Expected passengers per year: 50,000
• Fare from: COP 134.170

Neiva—Cartagena

From March 23, Viva also began flying from the Benito Salas Airport in Neiva, connecting the capital of Huila to Cartagena, and enabling onward connections to destinations such as México City. With Viva now the only airline offering nonstop connections between the two cities for fares starting at $136,000 each way, the initial schedule flies Monday, Wednesday and Saturday weekly. Viva expects 50,000 passengers on this route during its first year of operations.

More details about the Neiva – Cartagena route:

• Weekly frequency: Monday, Wednesday and Saturday.
• Operations began: 23 March 2022.
• Fare from COP 136.000

Cali—Cúcuta

Starting March 22, Viva began flying between Cali, Colombia, and the city of Cúcita, on the border with Venezuela, with an expectation of the new route carrying 55,000 passengers its first year.

“The launch of this new Cali-Cúcuta route and the beginning of our ‘Vuelta a Colombia’ with the 14 domestic routes, evidences our constant growth and the desire to bring air inclusion to every corner of the country,” said Antelo.

More details about the Cali – Cúcuta route:

• Weekly frequency: Wednesday, Friday and Sunday.
• Start of sales: 28 March 2022.
• Fare from COP 89,000 each way

Major personnel announcements

Viva also announced that in March, former director of strategy Pablo Madriñan has been promoted to the new Vice President and Chief Commercial Officer of the Viva Group due to his outstanding performance in his previous role. In his new role, Madriñan is in charge of network planning, revenue, ancillary services, sales, marketing, projects and alliances.

Madriñan has more than a decade of experience in the airline industry, including important positions in Latam Airlines and Tap Air Portugal, leading high-level teams in the areas of Planning and Network Strategy, as well as Revenue Management and Pricing. He holds a BS in industrial engineer from the Universidad de Los Andes and an MBA from the IE Business School.

Viva has also announced the return of Francisco Lalinde as Vice President of Operations and Chief Operations Officer and the arrival of Paola Giraldo as the new Vice President of People (Chief People Officer), who joined the company in November. Giraldo has more than 15 years of experience in Human Resources Management and administrative processes. The company wishes success to Juan Diego Zapata, former Director of Sales and Distribution in his new challenges.

Recent Viva domestic route announcements:

San Andrés – Armenia

• Weekly frequency: Wednesday and Saturday.
• Start of operation: 30 March 2022.

Bucaramanga – Santa Marta

• Weekly frequency: Tuesday, Thursday, Saturday
• Start of operation: 29 March 2022

Cali – Montería

• Weekly frequency: Tuesday, Thursday and Saturday.
• Start of operation:29 March 2022.

Cartagena – Cúcuta

• Weekly frequency: Monday, Thursday and Friday.
• Start of operation:28 March 2022.

Cartagena – Armenia

• Weekly frequency: Monday, Friday and Saturday.
• Start of operation:25 March 2022.

Cartagena – Pastó

• Weekly frequency: Tuesday, Friday and Saturday.
• Start of operation:29 March 2022.

Cartagena – Villavicencio

• Weekly frequency: Tuesday, Friday and Saturday
• Start of operation:27 March 2022

Cartagena – Neiva

• Weekly frequency: Monday, Wednesday and Saturday
• Start of operation:23 March 2022.

Medellín – Pasto

• Weekly frequency: Tuesday, Thursday and Saturday
• Start of operation:29 March 2022

Medellín – Valledupar

• Weekly frequency: Wednesday and Friday
• Start of operation:30 March 2022

Medellín – Villavicencio

• Weekly frequency: Monday, Friday and Sunday
• Start of operation:27 March 2022

Medellín – Pereira

• Weekly frequency: Monday, Tuesday, Thursday, Friday, and Sunday
• Start of operation:18 March 2022

Medellín – Riohacha

• Weekly frequency: Wednesday and Saturday
• Start of operation: 19 March 2022

Armenia- Medellín

• Weekly frequency: Monday, Wednesday, Thursday, Friday
• Start of operation: March 28, 2022

New international routes:

Medellín- Punta Cana

• Weekly frequency: Monday, Wednesday, Friday, and Sunday
• Start of operation: 18 March 2022

Cali-Cancún:

• Weekly frequency: Tuesday, Thursday and Sunday
• Start of operation: 22 March 2022

Photo © Loren Moss

Avianca also announced that the Cali – Orlando route will cease to be seasonal & will be part of its permanent offer.

The airline also announced that it is restarting a route between Bogotá and London, beginning March 28, and from Cartagena to Miami, beginning March 27^.

“In 2021, we set out to inaugurate 50 new routes in the next 3 years and we are getting closer to achieving it. We continue to provide more and better point-to-point and non-stop connectivity opportunities to our customers so that they can travel to their preferred destinations in America and Europe, at more competitive rates and with a tailored product that allows them to personalize their trip. This is how we combine the best of our 100 years with the practicality of the modern low-cost world,” said Ana María Copete, Director of Colombia Sales for Avianca.  

_{*Operations subject to government approvals}