Five questions to Felix Antelo, CEO of Viva Air

1. Noticias Airbus has been following VivaAir's recent announcement of a $50 million investment from Cartesian Capital Group to support the airline group's future growth and internationalization. What do you think this capital infusion will bring the LCC market and its passengers in South America?

At Viva Air we keep delivering good news, this time with the announcement of a $50 million capital injection from Cartesian Capital Group. The investment will support the expansion and internationalization of the airline for the following years. This fact confirms the remarkable moment we are going through, and the huge growth opportunities we have in the region, that will end up benefiting our passengers.

The resources will contribute in 360 degrees and will be fundamental for the improvements in the operation and the expansion of routes, therefore we are currently analyzing options for reaching a third country in South or Central America. Additionally, the capital infusion will bring the LCC market and its passengers in Latin America a more dynamic market, a solid performance, better service and an incredible potential of new opportunities, which will allow us to maintain low prices and help passengers accomplish their dreams to travel.

Our travelers have now the option to visit 25 destinations, one in United States, 12 in Peru and 12 in Colombia, (including the new ones in Juliaca, Peru and Barranquilla, Colombia). And the number of destinations will keep growing over the coming years.

2. Two years ago at the Paris Air Show, Viva Air announced its commitment to purchase 50 A320 aircraft. Now that you have received 10 A320 aircraft, how are they operating for Viva Air?

Exactly, we have already received 10 out of the 50 new A320 aircraft we purchased, and we will end 2019 with a total of 15 new aircraft. The total new fleet will be complete by 2023. It is important to mention that the first 15 of the aircraft are CEO model (current engine option) and the rest are NEO (new engine option) which means more efficiency in operations, allowing us to consume less fuel and contributing to cover greater distances, taking care of the environment.

The 10 new aircraft have meant for us important savings regarding maintenance and operational costs including oil, filters, lights, spare parts, and so on. We have witnessed from October 2018 until today a significant saving of 60% in expenses. It also represents that these new aircraft generate fewer maintenance reports, 65% less to be precise, comparing it to the 'classic' model, meaning also less technical staff hours required for aircraft maintenance.

We are obtaining significant savings in fuel consumption, being our highest item in expenses. We are saving approximately 10% (on the latest A320ceo as compared to the previous generation of A320ceo) and we will see how this percentage increases and is reflected in savings for our company as we make longer flights and cover longer distances. The new aircraft have increased considerably our punctuality, mainly because they are latest generation and do not suffer failures frequently so they can fly much longer. Additionally, the turnaround or transit time at the airport has also been impacted very positively. Our aircraft have much more interior space thanks to the modern configuration of seats giving a wider space in the aisle which allows faster boarding and unloading.

3. Viva Air recently selected Airbus' Flight Hour Services (FHS) and expanded its relationship with Navblue to now also include flight operation solutions. How are these Services supporting VivaAir's growing fleet? What is the value proposition of these Services for an LCC?

FHS is supporting a lot Viva Air's growth, giving immediate solutions when a failure in an aircraft rotable unit comes up. This issue triggers a complete solution from Airbus to replace the damage unit, in order to keep our fleet flying as much as possible.

The LCC model is benefitting from this solution, because it lets us have a full understanding of our maintenance costs, eliminating any variable expenses, giving us anticipated knowledge that we can work with, in order to set our fares. At the end, this practical solution allows us to give our passenger fair rates, without unexpected changes.

4. It has been interesting to see VivaAir launch an innovation lab for the aviation and travel sector? Can you tell us what you hope to accomplish long term and also share what you have already learned since launching? Why this is important to Latin America's aviation ecosystem?

Viva Air Labs is designed to attract entrepreneurs, innovators and academic institutions to work on projects around different areas of innovation such as personalization of the clients' travel experience according to their preferences, data analysis, new payment methods through different platforms such as WhatsApp, Apple Pay, Google Pay and generate innovative content according to our customers interests.

Air Labs exists to identify needs in the market and for our customers, and to solve real airline problems on time. We want to improve and develop the infrastructure for Tourism and Travel industries. And in the long term, we hope to engage with innovators, entrepreneurs and connect with Universities to allow us to have access to the right talent and skills for our needs.

We have learned that innovation is about discipline, creativity and taking actions. When it comes to innovation at Viva Air, it is extremely important to involve all areas and levels at the company, different perspective and opinions, to have a wider point of view. Innovation in the airline industry is about flying at 30,000 feet, but with an eye on the ground.

This new Innovation Lab is important for the ecosystem because we need to be prepared for the market dynamics. Passengers numbers are set to double by 2030 and travel will be a major economic driver for Latin America. It is important that we are engaging the region to solve Latin American problems and not just adapting technology from North America and the EU. As a Latin American ecosystem, we need to believe we are unique and find our own ecosystem identity. This industry needs to create more connections, be open mind, and walk the path other industries have walked.

5. Anything you'd like to tell our Noticias Airbus readers?

Viva Air Group is investing in technology to consolidate our low cost business model. Technology will be our best ally in achieving our goals and improve customer experience and service, operational efficiencies and therefore enjoy better rates for our passengers.

A new website oriented to "mobile first", the use of tablets for on-board services, the 'paperless strategy' for eliminating paper in the pilots cabin and crew, and the use of the latest Raido technology software to generate greater efficiencies and safety of the Airline, are some of the technological bets of Viva Air.

Also, we want to highlight another digital solution we are working on: Skywise Predictive Maintenance. We will optimize our maintenance engineering and flight operations decision-making and reduce operational interruptions and costs. This digital transformation investment improves fleet operational reliability through predictive and preventative maintenance, optimize each aircraft's performance through flight operations data analytics and reducing data collection leadtime.