Colombia Blocks Avianca and Viva Air Merger

The Avianca and Viva Air merger has hit a major roadblock with Colombian authorities objecting to the proposed combination. The move could be a blow to Avianca's plan to create a pan-South American airline group with Brazil's Gol.

Colombia's Civil Aeronautics Authority, or Aerocivil, said Tuesday that the merger of the country's first and third largest airlines could reduce competition and hurt consumers. It could also increase the barriers faced by compet