The Bogotá mayoralty has declared the tender process for the construction of the capital’s second metro line void after no bids were submitted by the deadline, Mayor Carlos Fernando Galán said on Tuesday, highlighting ongoing challenges facing Colombia’s most ambitious infrastructure project.

Galán said none of the prequalified consortia presented final offers before the cutoff time on Jan. 20, forcing the city to restart the process. He stressed, however, that the decision does not jeopardize the continuation of the project, which is expected to be re-tendered through a new international bidding process beginning in February. “We must inform the public that no proposals were received from the consortia that were prequalified to submit offers,” Galán told a press conference. “This does not mean that Metro Line 2 will not go ahead. Metro Line 2 continues.”

Bogotá’s second metro line, a 15.5-kilometre underground system designed to connect the city’s northern and western districts with the centre, is a key component of efforts to modernize public transport in a city of more than 8 million residents.

The project is expected to include 11 stations, most of them underground, and carry up to 50,000 passengers per hour in each direction.

The Mayor said the new tender would benefit from a more mature technical and financial structure, as well as continued backing from multilateral lenders and Colombia’s national government through existing co-financing agreements. Authorities aim to award the contract in the first quarter of 2027.

The failed bidding process follows a lengthy prequalification phase that began under the previous city administration led by former mayor Claudia López. Four consortia were initially prequalified in August 2023, after which the project moved into the public tender stage in September of that year.

According to Galán, two of those groups were excluded in October 2024 due to conflicts of interest raised by competing bidders. That reduced the field to two consortia, one Chinese and one Spanish.

In October 2025, the Chinese-led consortium withdrew from the process, citing concerns over Colombia’s exchange rate volatility and associated financial risks. This left the Spanish consortium as the sole remaining bidder. That group later requested an extension to the submission deadline, which city authorities declined to grant.

Galán said the Spanish consortium ultimately failed to submit a proposal after one of its key partners, infrastructure firm Acciona, withdrew from the group, rendering the bid unviable. The formal notification of withdrawal was filed on the same day the tender closed.

The City claims to have taken steps to encourage competition, including issuing addenda and extending deadlines, but were ultimately unable to secure a binding offer.

The announcement comes as construction of Bogotá’s first metro line – an elevated system being built by the Chinese consortium China Harbour Engineering Company Limited (CHEC) – has reached approximately 70% completion, according to the mayoralty. Line 1 is scheduled to begin operations in 2028 and is seen as a test case for future rail projects in the capital.

Metro Line 2 is expected to cost approximately 34.9 trillion Colombian pesos (USD$8.9 billion) and will be fully automated, according to the Bogotá Metro Company. The line will operate 25 trains, each measuring 140 metres in length, and is projected to add around 800,000 daily trips to the city’s public transport network once operational.

Leonidas Narváez, general manager of the Enpresa Metro de Bogotá (EMB) said the city would launch an expanded global outreach campaign to attract new bidders when the tender reopens. “We will carry out a broad international invitation to firms around the world so that they can once again participate,” Narváez said.

Political reactions to the failed tender were swift. Daniel Briceño, a former city councillor from the  Centro Democrático party, and Senatorial candidate, blamed the López administration for what he described as structural flaws in the project’s design. “This process was left poorly prepared and with serious errors,” Briceño said in a statement.

City councillor Juan David Quintero, meanwhile, attributed the lack of bids in part to global geopolitical tensions, pointing to the trade disputes between the United States and China as a factor influencing risk perceptions among major infrastructure firms.

Galán rejected claims that the project was at risk, saying the revised timeline preserves the city’s broader metro expansion plans. Under the new schedule, authorities expect to receive bids in September 2026, following additional technical and financial adjustments. “We have secured financing, multilateral support and a valid co-financing agreement,” he said. “The project remains on track.”

Bogotá officials said the restart of the tender process was intended to provide greater certainty to potential bidders while safeguarding public resources and long-term project viability.

For much of the past decade, Colombia built a reputation as one of travel’s great value destinations: culturally rich, visually stunning, and refreshingly affordable. A strong U.S. dollar, competitive hotel rates, and inexpensive food and transport helped turn cities like Medellín and Cartagena into global favorites, while smaller destinations thrived on a steady flow of backpackers and eco-tourists.

This equation is now changing. And faster than the industry expected.

The Colombian peso has strengthened sharply, trading this week near 3,630 to the U.S. dollar, its highest level since mid-2021. For foreign visitors, the effect is immediate and tangible: fewer pesos per dollar at the ATM, and higher costs across nearly every aspect of a trip – from meals and hotel stays to transportation and tours.

The shift is perhaps most visible at the table. Consider a classic Caribbean staple: deep-fried mojarra, served whole with coconut rice and patacones. At La Estrella, a popular local eatery in Cartagena, the dish costs about COP$40,000 per person. Order the same fish at a beachside stall and the price climbs to COP$60,000. In a high-end Old City restaurant, plated with foraged greens and linen service, it can reach COP$120,000 per person.

At today’s exchange rate, that translates to roughly $11, $16, and $33 — still accessible by international standards, but a noticeable jump from the Colombia many travelers remember.

Currency is only part of the story

While peso strength explains much of the increase, Colombia’s tourism sector is also grappling with sharply higher operating costs following a 23% increase in the national minimum wage, enacted by presidential decree under President Gustavo Petro.

From the government’s perspective, the measure was framed as a necessary response to inflation and cost-of-living pressures. For hotels, tour operators, and travel agencies, however, the speed and scale of the increase have posed significant challenges.

The Colombian Hotel and Tourism Association (Cotelco) has warned that the decision places particular strain on an industry where labor accounts for a large share of costs. According to Cotelco, roughly 70% of hotel workers are part of operational teams — including housekeeping, front desk staff, maintenance, kitchens, and security — leaving businesses highly exposed to wage adjustments.

Cotelco has also pointed to recent changes in labor rules, such as higher pay for Sunday and holiday shifts and the earlier start of night-shift premiums, which further increase payroll expenses. Looking ahead, the sector faces additional pressure in July 2026, when Colombia’s legally mandated reduction of the workweek to 42 hours takes effect, a complex adjustment for hotels that operate around the clock.

Rising costs beyond wages

Labor is not the only expense rising. Hotels and tourism businesses are also absorbing higher energy and gas tariffs, including a 20% energy surcharge introduced in 2025, which disproportionately affects establishments that operate continuously and rely heavily on air conditioning, refrigeration, and water systems.

Transportation costs are climbing as well. Higher toll fees and fuel prices have pushed up the cost of airport transfers, private drivers, and overland travel between destinations, quietly adding to tourists’ final bills. These increases are particularly noticeable for travelers moving between regions — for example, from Cartagena to Santa Marta, or through the Coffee Axis by road.

Price increases are not felt evenly across the country.

In large cities such as Bogotá and Medellín, intense competition has helped cushion the blow. These markets offer a wide range of accommodation, from budget hostels and short-term rentals to international five-star hotels, giving travelers flexibility and keeping price growth relatively contained.

In contrast, smaller resort and nature destinations face sharper pressure. In places like Palomino, wedged between the Caribbean Sea and the Sierra Nevada de Santa Marta, or Salento in the Coffee Axis, accommodation options are limited. Boutique eco-lodges and family-run hotels dominate, and supply cannot easily expand.

In these destinations, rising labor and operating costs are passed on more quickly to guests, making price hikes more visible — and sometimes harder to justify.

According to Anato, Colombia’s association of travel agencies, the wage increase has also disrupted long-term planning. Many tourism businesses had projected annual cost increases of 8% to 12%, not nearly double that figure.

For inbound tourism, which operates on long booking cycles, the timing is especially problematic. Rates, packages, and contracts with international wholesalers for 2026 were often negotiated under different macroeconomic assumptions, limiting companies’ ability to adjust prices after the fact.

Anato has also warned of a double squeeze: rising costs at home combined with a stronger peso, which reduces the real value of revenues earned in foreign currency.

Pay more – Higher expectations

Most travelers are not inherently opposed to paying more for Colombia. What they increasingly expect, however, is visible improvement in exchange.

Higher prices bring sharper scrutiny of cleanliness, waste management, and environmental standards, particularly in coastal areas where beach pollution and informal tourism practices remain persistent concerns. As Colombia positions itself as a higher-value destination, arbitrary pricing, lack of regulation could erode sustainable tourism.

Internal security is another critical factor. As costs rise, long-standing security concerns, especially in rural areas and off-the-beaten path travel corridors, weigh heavily in  destination choice. Travelers paying mid-range or premium prices expect predictability and safety to match the cost.

Looking ahead, a further strengthening of the peso toward 3,500 per dollar would intensify pressure on Colombia’s tourism sector as competition and air connectivity across the region grows fiercer.

Colombia now finds itself competing directly with the all-inclusive efficiency of Mexico’s Riviera Maya and the Dominican Republic, the well-established eco-tourism model of Costa Rica, and the increasingly curated cultural and nature offerings of Guatemala. These destinations have spent years refining price with product, investing in infrastructure, security, and environmental enforcement.

Colombia’s transition from affordable standout to mid-range contender is still underway. Currency strength and wage growth can signal economic maturity, but without tangible improvements in security, the country risks losing travelers to emerging destinations across the Middle East and South East Asia. The message is clear: Colombia remains compelling – but no longer discounted. Whether higher prices translate into a better consumer experience will determine how well the country holds its place in an increasingly crowded travel market.

Colombia’s Transport Minister María Fernanda Rojas said on Monday that Avianca is close to completing mandatory software updates on its Airbus A320 fleet, with only 19 aircraft still pending intervention after a week of global disruptions triggered by what aviation experts describe as the largest recall in Airbus’s 55-year history.

The grounding forced airlines across several continents to halt operations, rebook thousands of passengers, and reconfigure flight schedules during one of the busiest travel periods of the year.

According to Aerocivil, Colombia’s Civil Aviation Authority, 102 of Avianca’s 124 grounded A320 aircraft are now back in service following an accelerated technical effort led in coordination with Airbus technicians. The remaining aircraft are expected to be updated within three days at Avianca’s main maintenance base at Rionegro, Antioquia. Authorities fast-tracked the import of 10 additional software units from France after Colombian regulators, the Ministry of Transport, and the tax agency DIAN jointly cleared an emergency customs process over the weekend.

Latam Airlines and JetSMART, the two other carriers in Colombia operating affected A320s  have already completed updates on their six combined jets. The minister said the rapid turnaround reflects “an unprecedented level of coordination” between airlines, regulators and Airbus engineers, who were deployed across several countries to help implement the corrective measures.

Globally, airlines said operations were returning to normal on Monday, after the grounding struck at a sensitive time for the global aviation industry. The Airbus A320, which only weeks ago overtook the Boeing 737 as history’s most-delivered jetliner, also faces long-term maintenance bottlenecks that have left hundreds of aircraft parked and waiting for parts under the pressure of post-pandemic demand.

The crisis also hit Airbus at a moment when the European manufacturer was stepping up efforts to meet its year-end delivery targets. Signals of lower-than-expected deliveries for November have already rattled investors, and the grounding added further uncertainty to an already tight production schedule. Shares of major Airbus customers — including Lufthansa and easyJet — fell on Monday amid concerns that delivery timelines could slip further. According to Reuters several deliveries have already been impacted, though the extent and duration remain unclear; one industry insider estimated around 50 aircraft could face delays.

Adding to Airbus’s challenges, the company on Monday confirmed a separate quality issue involving metal fuselage panels on a “limited number” of A320 aircraft. While the defect does not pose an immediate safety risk, Airbus said it is taking a “conservative approach” by inspecting all aircraft that could potentially be affected. The announcement sent Airbus shares tumbling as much as 6% during early trading, heightening market anxiety already fueled by the software crisis and flight disruptions.

The initial software alert was triggered after Airbus analyzed data from a recent in-flight incident and concluded that intense solar radiation under certain conditions could corrupt data linked to the aircraft’s flight-control computers. The disruptions rippled across major hubs in Latin America and the United States, coinciding with the U.S. Thanksgiving travel weekend, one of the busiest periods of the year.

Delta and American Airlines were forced to delay or cancel flights as dozens of A320 jets were pulled from service for urgent inspections. “Airbus apologises for any challenges and delays caused to passengers and airlines by this event,” the manufacturer said in a statement.

For Colombia’s flagship carrier and one of the world’s largest A320 operators, the near-completion of the updates marks a significant recovery after days of cancellations, rebookings and schedule reshuffling. The airline will reopen ticket sales on December 5 as its domestic and international network returns to full capacity and the remaining 19 jets are certified to fly.

Colombia’s flagship carrier, Avianca, announced Friday it has grounded more than 70% of its Airbus A320 fleet after the European manufacturer issued an urgent global bulletin ordering operators to carry out immediate software updates to prevent potential flight-control failures.

The disruption, one of the most severe to hit the airline in years, comes as Airbus launched one of the largest fleet-wide recalls in its history, affecting some 6,000 A320 commercial aircraft worldwide — more than half of the global fleet. The A320 is the world’s most widely used single-aisle airliner and the backbone of Avianca’s operations across Latin America and to U.S and Canadian hubs.

There are around 11,300 A320 jets in operation in total.

In a statement, Avianca said Airbus notified operators on November 28 that a significant portion of A320 require a mandatory software modification. The update, which Airbus described as reverting to an earlier software version, must be applied before affected aircraft can resume flights, except for ferry operations to maintenance bases.

“As soon as the aircraft reach their maintenance bases, they must remain on the ground until the updates are completed,” Avianca said. “This order affects more than 70% of Avianca’s fleet.”

The airline warned that the grounding will trigger significant operational disruptions over the next 10 days as engineers work to install the update across its aircraft. To limit further complications and manage passenger flow, Avianca has temporarily closed ticket sales for travel dates through December 8 — an extraordinary measure taken to “reorganize its capacity and re-accommodate passengers on available flights.”

Customers with upcoming reservations will receive direct notifications from the airline detailing their travel options.

The update requirement has already led to cascading delays and cancellations across several regions. Reuters reported that, at the time Airbus issued its notice to more than 350 operators, roughly 3,000 A320 aircraft were airborne. Airlines in the United States, Europe, South America, India and New Zealand said the repairs could trigger operational disruption during one of the busiest travel weeks of the year.

American Airlines, the world’s largest operator of the A320 family, said about 340 of its 480 aircraft require the fix. The carrier expects the majority of updates to be completed by Saturday, estimating about two hours of work per jet. Delta Airlines said updates to a small portion of its Airbus A320 planes will likely be completed by Saturday morning, a spokesperson said.

Avianca, however, expects the impact to last longer given the scale of its grounded fleet in Latin America and the limited availability of maintenance slots at Bogotá’s El Dorado International Airport.

The airline said its priority is passenger and crew safety and that it is working “as quickly as possible” to complete the mandatory modifications and restore normal operations.

To mitigate the fallout, Avianca is offering several options to affected passengers:

• Rebooking on the nearest available Avianca flight or on partner airlines with which it has commercial agreements.

• Flexible changes, allowing travelers to reschedule without penalty fees or fare differences, subject to availability, for up to 180 days after the original travel date.

• Refunds for unused flight segments through the airline’s website, call center, sales offices or travel agencies.

Avianca urged customers not to go to the airport unless their flight has been confirmed and to closely monitor email notifications associated with their reservation, as well as updates on its official channels.

Despite the scale of the disruption, the airline said the swift grounding demonstrates its commitment to safety while complying with Airbus’ unprecedented directive.

“The priority of Avianca is to ensure the safety of our passengers and crew,” the company said, adding that it aims to complete the required modifications as soon as possible to “minimize service disruptions.”