Citing a procedural misstep, Colombia's aviation authority has annulled the 2022 merger application submitted by Avianca and Viva, and the process is to restart without a new application being filed.
The regulator said on January 19 there had been a "substantial irregularity in the processing of the administrative action" related to the application.
The stillborn merger attempt had earlier been dismissed by the Colombian regulator on the grounds it would undermine competition in the industry. The applicants appealed in late 2022, saying they would rejig their proposal to allow competitors access some routes and get first option on some preferred landing and take-off times.
The South American airlines sought to merge in the wake of the devastation wrought on airlines by the coronavirus pandemic and related travel curbs. Avianca, by far the bigger of the would-be partners, had come through a restructure, including a Chapter 11 bankruptcy process in the US, shortly before the merger bid was announced. Viva said at the time that its viability depended on the deal going ahead.