Commercial Alliance Between Allegiant and Viva Aerobus Authorized by Mexican Regulators
The Federal Economic Competition Committee of Mexico has authorized the commercial alliance agreement between Allegiant Travel and Viva Aerobus. Regulatory approval by the U.S. Department of Transportation is still in process.
On Monday (October 17, 2022), Allegiant Travel Company announced that their commercial alliance agreement with Viva Aerobus has been unconditionally authorized by the Federal Economic Competition (COFECE), Mexico’s antitrust regulatory authority. The proposed alliance is still under review by the U.S. Department of Transportation (DOT). The commercial alliance between the two airlines was originally announced in December 2021, and includes a strategic equity investment by Allegiant in Viva Aerobus, the Mexican low-cost carrier (LCC).
In Monday’s announcment, Viva Aerobus’ CEO, Juan Carlos Zuazua, said,
“COFECE's authorization is one step forward to forging an alliance that will strengthen a competitive environment with a larger offering between Mexico and the U.S. Working as a team, we will boost air travel and tourism while reaping the economic benefits associated with the travel industry.”
Also commenting on the regulatory hurdle clearance, Allegiant’s CEO, John Redmond, added,
“This approval is a critical next step to achieving a historic and unique alliance between two low-cost carriers in the world's most dynamic airline market. Together, we will make it possible for more people to fly and enjoy the unique culture, traditions and scenic destinations both countries have to offer.”
When implemented, the commercial partnership will enable Allegiant and Viva Aerobus to offer reciprocal loyalty program benefits and codeshared flights, along with synchronized sales systems and route networks, offering the benefits and advantages of both airlines. With the new alliance, Allegiant, which does not currently serve Mexico, will be able to rapidly enter the popular market, while Viva Aerobus will be able to grow their presence in various U.S. markets.
Founded in 2006, Viva Aerobus is Mexico’s ultra-low-cost carrier (ULCC). Currently, the airline operated the youngest fleet in Latin America with 65 Airbus aircraft including 40 A320s and 22 A321s. With the vision to bring air travel in reach of all, Viva Aerobus has democratized the airline industry with the lowest fares in Mexico and the lowest cost structure in the Americas.
Founded in 1999, Las Vegas-based Allegiant is an integrated travel company with an airline at its heart, and a focus on linking passengers from small to medium cities to world-class leisure destinations with all non-stop flights and industry-low average fares. The company offers base airfares that are often half the price of a typical roundtrip ticket and currently operates an all-Airbus A320 Family fleet. Allegiant recently placed an order for up to 100 Boeing 737-7 and 737-8-200 MAX jets.
Source(s): Allegiant Travel Company/PRNewswire, Viva Aerobus