Viva Air has suspended operations and blamed the Colombian transport ministry over delays to a proposed merger with Avianca which Viva said would help it stay in business.
"Viva regretfully announces the suspension of its operation, due to the delays in the timely definition of an alliance that would allow its integration with a stronger and larger airline group," the low-cost carrier said in a statement, in English, which was posted on its website.
The came after the regulator, known as Aerocivil and part of the transport ministry, said it had heard of interest from third parties, including LATAM and Jetsmart, about acquiring Viva.
The regulator had earlier blocked the deal from going ahead, citing competition grounds, and then said in early 2023 that the process could be restarted due to a paperwork error, opening the way for other carriers to express interest.
In a second statement, giving more detail in Spanish, Viva complained of "countless meetings" during an alleged seven months of delays after the proposed merger with Avianca was announced, warning that 5,000 jobs could be lost in Colombia if the deal does not proceed.
Viva said that while operations are suspended, it would "continue negotiations with creditors" and if the Avianca deal is approved, "will work to preserve its ability to restart operations at a future date". Viva has had to relinquish two leased aircraft since the Colombian government stopped the Avianca merger.
"For weeks now, [Aerocivil] has had everything necessary to issue a decision. They have had the full legal capacity and authority to issue that decision without further delay," Viva said.
The regulator in turn released a statement saying it had to follow the letter of the law, including for what it said were the thousands of passengers affected by Viva's suspension of operations.