Viva Air Colombia (Medellín José Maria Córdova) has appealed to the Colombian government for a loan to stay afloat amidst the coronavirus pandemic.

In a statement released on June 4, the Grupo Viva subsidiary called on the state to help it survive “the worst crisis in the history of global aviation”.

“In this absolutely critical situation, we ask the national government for a loan of USD50 million - a reasonable amount compared to the needs of the sector at the national and international level. We are not requesting ransoms or subsidies, since we understand the realities facing the country, and the efforts that have been initiated,” it said.

In stating its case for state assistance, the LCC stated that all its aircraft are registered in Colombia, it pays taxes in the country, and 98% of its workforce is Colombian. “We generate around 3,450 direct, and indirect jobs,” the carrier pointed and, as well as thousands more by facilitating the tourism and travel industry.

“In the past two years, we have invested heavily in renewing our fleet; today we have Colombia's most modern fleet, with fifteen Airbus A320s. In the future, they will be supplemented by thirty-five A320-200neo, which are even more modern, and efficient aircraft.”

Viva Air said the COVID-19 crisis is, without a doubt, the most serious that the airline industry has faced, and the carrier is looking at ways to deal with it, and avoid laying off staff. Most of its workforce has been on unpaid leave over the last several months.

“The closure of domestic operations for more than three months, and almost six for international flights, it is unsustainable for an industry that requires high cash flows due to its high fixed costs,” Viva Air said, and called for clarity on when it could return to the skies, noting that other countries with more coronavirus cases than Colombia have not shut down air operations or are planning to resume flights - Chile, Brazil, Mexico, and Guatemala did not suspend their operations while Ecuador resumed operations on June 1, Costa Rica announced the opening of its borders on June 15, and Peru will relax restrictions in July.

Viva Air said its aircraft are fitted with HEPA air filters, making them safe to fly in, and international COVID-19 health and safety measures for the tightly regulated aviation industry have already been proved.

“Every day the situation worsens, and in that sense, we need a definitive solution. Viva Air makes an urgent call to the government to take measures in the sector,” the carrier said in its request for the loan.

The airline said it plans to resume international flights from September 1, from Bogotá and Medellín José Maria Córdova to Lima International and Miami International, after Colombian transport minister Angela Orozco approved the resumption of international flights from September, Valora Analitik reported. There is no date yet for the resumption of scheduled domestic commercial passenger flights.

Viva Air was formed by Irelandia Aviation, which has also developed Viva Air Perú (Lima International). On June 10, Viva Air Peru appealed to the Peruvian government for financial support, saying more than 600 direct jobs are at risk.

“In this absolutely critical situation, we ask the national government for a loan for a reasonable amount compared to the needs of the sector at the national and international level. We are not asking for bailouts or subsidies,” the carrier said.