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The merger of Avianca and Grupo TACA will create a new airline powerhouse in Latin America
Avianca's crusade to create a leading Latin American airline group took one gigantic step forward in October after it agreed to establish a new parent company with Grupo TACA which will include more than 13 airlines from 10 countries.
Combined Avianca and TACA will serve 79 Latin American destinations, more than any other carrier in the region. With, over $3 billion in annual revenue, Avianca-TACA will be the fourth largest airline group in Latin America behind LAN, TAM and Gol.
But TACA chief executive Roberto Kriete stresses the merger is about creating new revenue opportuni ti es and reducing costs rather than stealing market share from other Latin American carriers. "Our idea is not to pick a fight with Copa, LAN or anyone," says Kriete. who will be chairman of the new holding company.
German Efromovich. whose first airline venture dates back to 2002 with Brazil's OceanAir and who acquired much larger Avianca at the end of 2004. has always talked about creating a powerful pan-Latin America airline group. He says the idea to merge with Grupo TACA was discussed seriously for the first time during a chat with Kriete at a Wings Club dinner in New York last year. "I saw Roberto and we started talking....