The Federal Economic Competition Commission (COFECE) unconditionally authorized the Commercial Alliance Agreement between Allegiant and Viva Aerobus filed with the authorities in December 2021. This partnership also includes a strategic equity investment by Allegiant in the Mexican airline.
This agreement, the first in the airline industry between two ultra-low-cost carriers (ULLCs), also has as one of its main objectives to expand low-fare service between Mexico and the United States.
«COFECE’s authorization is a step forward in forging an alliance that will strengthen a competitive environment with greater choice between Mexico and the United States,» said Juan Carlos Zuazúa, CEO of Viva Aerobus.
«Working as a team, we will boost air travel and tourism while reaping the economic benefits associated with the travel industry,» Zuazua added.
This fully integrated agreement will allow Allegiant and Viva Aerobus to implement cross-functionality between their respective frequent flyer programs, codeshare, sales systems, and route networks to operate joint services with all the benefits and advantages of both airlines.
Through this partnership, Allegiant, which currently does not operate in Mexico, will be able to quickly enter and expand in the market, while Viva Aerobus will be able to increase its presence in multiple destinations in the United States. This will be the second cross-border alliance between a Mexican and U.S. airline.
«This approval is the next critical step in achieving a historic and unique alliance between two low-cost carriers in the world’s most dynamic airline market,» said John Redmond, chief executive officer of Allegiant.
«Together, we will make it possible for more people to fly to and enjoy the unique culture, traditions and scenic destinations that both countries have to offer,» added Redmond.
The joint application seeking antitrust approval and immunity for the alliance is still pending approval from the U.S. Department of Transportation (DoT). Both airlines recently filed amendments to their Joint Venture with DoT, in addition to requesting early approval for the first half of 2023.
See also: Allegiant and Viva Aerobus submit new Joint Venture proposal to DOT
