The Context

  • Prior to our investment, Colombia was poised for growth
    • 3rd largest aviation market in Latin America
    • Growing middle class
    • Stable, balanced economy; growing well
    • Emerging from challenging period
  • Colombia’s challenging topography and infrastructure favors aviation (limited road infrastructure susceptible to damage from natural environment)
  • No established LCC in the domestic market
  • Irelandia desire to emulate Mexico success and extend development in Latin America
  • Experienced local entrepreneurial team (Grupo Fast) and strong local financial company (Grupo Bolivar) were perfect partner fits to join Irelandia and IAMSA. Agreement 2011

What was achieved

  • VivaColombia launched in May, 2012
  • 5 aircraft by end 2012
  • Following Irelandia ultra LCC model
  • Many parallels with VivaAerobus in Mexico:
    • Aiming for lowest seat cost airline in Colombia; and competitive with bus
    • Stimulating travel via totally new routes and low fares, expanding market
    • Established ‘home’ base in Medellin rather than higher profile Bogota
  • Consumers excited by lower fares; driving growth of entire market

Irelandia Position

  • Declan Ryan is Chairman
  • Irelandia team represented at Board and Committee level; senior team brought to Board meetings
  • Support of management between Board meetings on range of critical items
  • Very active input to pre-launch and launch phase
  • Investment in 2012; early stage