Mexican airlines Volaris and Viva have entered into an agreement to create a new airline group under a holding company structure, with the objective of expanding low-cost travel and connectivity within Mexico and abroad.
In a move described as a ‘merger of equals’, the two carriers will retain their current operations under their independent operating certificates and brands.
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With enhanced economies of scale through this new airline group, Volaris and Viva say that they will benefit from lowered fleet ownership costs, improved access to capital, and a strengthened financial position. This will enable both carriers to expand their offering of low-cost, high-value service that makes air travel more accessible to a broader set of customers, with the goal of improving market reach and encouraging demand.
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“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry over the last two decades,” said Enrique Beltranena, Volaris’ President and CEO.
“The economies of scale and expanded distribution capacity will allow us to compete even more effectively in domestic and international markets by lowering fleet ownership costs. This way, we will be able to offer ultra-low-cost fares to even more passengers as we pursue sustainable growth, benefit from a more efficient fleet, and lower costs.”
Juan Carlos Zuazua, CEO of Viva added that both companies remained committed to the low-cost model. “Our passengers choose Viva and Volaris for their point-to-point networks, seamless customer service, and low fares, so maintaining our ultra-low-cost strategy is essential not only for sustaining growth, but also for deepening passenger loyalty”.
“Together, we look forward to continuing to deliver more flights at low cost for our passengers,” Zuazua concluded.