Press Release C. 48-09
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El Salvador, November 11 , 2009.
Law Enforcement: Mergers and Acquisitions
TACA/AVIANCA Operation Does Not Require CS Authorization
The Board of Directors (BD) of the Competition Superintendence (CS) determined that
the operation between TACA and AVIANCA does not require the CS´ authorization. Due
to the fact that AVIANCA does not operate in the country, the merger request was
overruled.
The BD of the CS overruled the merger authorization request related to
“In case the merger or the merger between Taca International Airlines, S.A. (TACA) and Aerovías
acquisition submitted to del Continente Americano (AVIANCA), since the operation did not comply
control does not exceed with the necessary requirements for a previous authorization from the CS.
the thresholds The BD concluded to overrule the request since AVIANCA does not
established by the participate in the Salvadoran market; fact that was proven with a
Competition Law, or certification issued by the Civil Aviation Authority, (in Spanish, Autoridad
involves related or de Aviación Civil “AAC”). Furthermore, AVIANCA does have any assets or
dependent companies, income in the country. The aforementioned was a determining factor to
or one of them does conclude that said merger did not require to be revised by the BD of the
participate in the CS.
Salvadoran market, no
The AAC is a Public Administration institution directly in charge of
prior authorization from
regulating all aspects related to civil aviation, both technical and
the CS is required”, said economic. Granting, modifying, suspending, and cancelling operation
Jose Enrique Argumedo, permits of public air transportation companies are amongst its duties.
Chairman of the BD of
the CS. The petitioner filed together with the authorization request, a certification
issued by the AAC Executive Director certifying that AVIANCA does have
an air operator certificate (in Spanish, certificado de operador aéreo “COA”), or an operation permit to carry
out public air transportation of passengers, cargo, and mail, or exclusive cargo in El Salvador.
Background
Date Event
October 2009 TACA and AVIANCA subscribed a Contribution Contract in order to create a controlling
company, which would indirectly have control over TACA and AVIANCA.
October 23rd, 2009 TACA filed a merger authorization request with the CS, together with information
concerning the operation to be carried out, its objectives, and details of the current and
future operations.
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November 10 , 2009 The BD overruled the merger authorization request since the operation did not comply with
the necessary requirements for a previous authorization from the CS.
Edificio Madreselva, 1er Nivel, Calzada El Almendro y 1ª Ave. El Espino, Urb. Madreselva, Antiguo Cuscatlán, El Salvador.
E-mail: contacto@sc.gob.sv - www.sc.gob.sv