In recent airline news, Avianca hopes to merge with low-cost airline Viva, one of Colombia‘s most important commercial airlines. While the two airlines will keep separate branding and strategies, the two airlines will be consolidated under the same holding company.

Once approved, the merge is sure to promote financial stability for both of the popular airline companies.

“Majority shareholders from both airlines together announce that Viva will form part of Avianca Group International Limited (Avianca Group), while Viva founding member Declan Ryan will join the board of the new group, bringing all his expertise in aviation,” the companies said in a joint statement.

As part of the agreement, Viva founding partner Declan Ryan will get a seat on Avianca’s board of directors.

“If the authorities approve the management of both groups under the same holding company, it will encourage the growth of the air transport market, promoting low rates for users and good service with the best punctuality, allowing everyone to fly with a world of destinations,” said Ryan.

“This transaction and a potential future combination will create high-skilled jobs for our employees and our suppliers.” he added.

Avianca recently completed a restructuring at the end of 2021. This restructure allowed it to emerge from Chapter 11 bankruptcy. Avianca, the Colombian budget airline, currently has more than 110 aircraft, with some 12,000 employees.

Viva is a smaller but equally as noteworthy airline. In fact, the airline has worked to build a reputation as one of the main low-cost carriers in Latin America. It has gained the strongest reputation for flights across Peru and Colombia. The airline has 22 planes and around 1,200 employees.

The merger currently awaits regulatory clearance.

Related: Frontier And Spirit Airlines Merger Will Create The Ultimate Low-Fare Airline