October 4. The Colombian carrier Avianca and the Chilean low-cost operator Sky Airline could be planning to merge under one brand. The move would create the single largest low-cost airline in Latin America.
The word consolidation is often repeated among airline executives. Whenever a crisis happens, we have seen airlines merging into one another. The Latin American region is not the exception to the rule. In the past, we have witnessed LAN and TAM join and create LATAM; Avianca itself is the product of many (many) mergers, and so on.
Both airlines are poised to benefit from the possible merger. Sky Airline would get a needed investment to continue its low-cost operation in Chile and South America. Additionally, it would allow Sky to compete against LATAM and JetSMART better.
In the meantime, Avianca could have a low-cost feeder across South America. Avianca would focus its post-covid efforts on the medium and long-haul routes, and Sky Airline could provide Avianca with domestic passengers.
Source: Simple Flying