Bogota, April 26, 2023

In relation to resolution 00815 of 2023 of the Civil Aeronautics regarding the integration process between Avianca and Viva, Avianca informs:

Since August of last year and to date, Avianca has consistently reiterated its conviction that the best solution for consumers, for Viva's employees and for Colombia's air connectivity is to allow the integration of Viva with Avianca, establishing conditions that strike an appropriate balance between ensuring Viva's long-term viability and safeguarding competition in the air market.

No other market player has proposed another viable solution that would allow Viva to continue operating, maintaining its low-cost model and providing access to air transportation services to millions of Colombians.

Today it has been more than two months since Viva ceased operations, two months in which Viva has lost aircraft, lost employees, and lost capacity. During this period, market capacity was further decreased by the cessation of operations of another player -Ultra- highlighting the depth of the sector's crisis. In the meantime, Avianca has not been able to move forward with the requested integration, since:

• Resolution 00518 from 2023 by the Civil Aeronautics, dated March 21, 2023, authorized the integration but with several conditions that, depending on the case, (i) make Viva’s operation unviable in the medium term, sentencing it to operational and financial failure (e.g. lack of slots), (ii) are impossible to comply with, given the current reality of that company, which has already lost more than half of its aircraft (e.g. the requirement to maintain capacity on exclusive routes despite the lack of aircraft and slots), or (iii) grant unjustified benefits to third parties (e.g. requiring Avianca to pay for Satena's IOSA certification). In all these cases, the conditions proposed by Aerocivil make Viva's recovery impossible.
• In addition, Resolution 00518 did not become final and is subject to reinstatement and appeal not only by Avianca and Viva, but also by "intervening third parties" such as Jetsmart, Wingo and LATAM, whose participation, which only seeks to delay the process, is in direct opposition to that established by the Office of the Attorney General of the Nation, which has demanded that they be excluded from the process in compliance with Law 1340 of 2009.
• Yesterday's new Resolution 00815, in which the reinstatement is ruled, basically reiterates the conditions of Resolution 00518, so that, in essence, it does not allow a realistic transaction for the integration and rescue of Viva.
• The new Resolution 00815 has not yet become final, being subject to appeal not only by Avianca and Viva (a condition in which Avianca expects the considerations it requested to the initial conditions to be taken into account, for the reasons described above), but also by "intervening third parties" such as Jetsmart, Wingo, and LATAM, persistently in direct opposition to what was established by the Office of the Attorney General and Law 1340 of 2009.

The process, which has been under study for almost nine months, must now add this phase of appeals, making the rescue of the airline Viva gradually less viable. Every day that passes in the process is one day less for Viva, for its workers and for the entire value chain associated with its existence. There is an increasing risk that lessors will withdraw the airline's few remaining aircraft, making its operation unviable. In addition, May 9 is approaching, the date on which Viva will lose the protection of the business recovery process it is undergoing at the Chamber of Commerce of Eastern Antioquia, making its rescue impossible.

Throughout this time, Avianca has maintained its commitment to rescuing Viva - to the extent that it is viable - and to ensuring the stability of the airline industry and has demonstrated this by relocating more than 140,000 users affected by the crisis at both Viva and Ultra, the vast majority of these at no cost.

Today, undoubtedly, the speed of the authorities' actions and the reconsideration of the unfeasible conditions imposed so far is essential to find a solution that will safeguard the existence of what remains of the low-cost pioneer in Colombia.