Category Archives: Viva Air

Allegiant Air and Viva Aerobus announce an alliance agreement

Allegiant Chairman and CEO Maurice J. Gallagher, Jr. and Viva Aerobus Chief Executive Officer Juan Carlos Zuazua, photographed at McCarran International Airport in Las Vegas. The airlines today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. (Photo: Henri Sagalow)

Allegiant Air and Viva Aerobus today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. The alliance is not only the first such venture for Las Vegas-based Allegiant and Viva Aerobus, but is also first-of-its-kind in the airline industry between two ultra low cost carriers (ULCCs).

Allegiant and Viva Aerobus have submitted a joint application to the U.S. Department of Transportation (DOT) requesting approval of and antitrust immunity for the alliance.  Allegiant will also make an equity investment of $50 million in Viva Aerobus, and Allegiant Chairman and Chief Executive Officer Maurice J. Gallagher, Jr. is expected to join the Viva Aerobus Board of Directors. The transactions are also subject to clearance by the Mexican Federal Economic Competition Commission.

Combining the unique product offerings, networks and market experience of two of the world’s fastest-growing ULCCs, the alliance will achieve important public benefits that neither Allegiant nor Viva Aerobus could provide independently.

The only U.S.-based airline focused entirely on leisure travel, Allegiant currently offers nonstop service to more than 130 cities across the country.  It does not currently serve Mexico. Monterrey-based Viva Aerobus offers extensive intra-Mexico service, as well as nonstop flights from Mexico to key destinations in the U.S. and Latin America. The Alliance Agreement will afford Allegiant the opportunity to broaden its travel offerings to include new world-class vacation destinations such as Cancun, Los Cabos and Puerto Vallarta, Mexico. At the same time, Viva Aerobus will have access to Allegiant’s distribution network and point-of-sale process, growing its U.S. customer base.

The alliance will also enable Viva Aerobus to add routes in the United States – particularly underserved or untapped-to-Mexico markets where Allegiant has a significant presence such as Las Vegas and several cities in Florida — very popular destinations for Mexican tourists.

A fully-integrated and immunized alliance will afford Allegiant and Viva Aerobus coordination across all areas of airline operations – including code-sharing, scheduling, marketing, information systems and loyalty programs, providing seamless access and benefits for customers of both airlines.

The alliance is anticipated to add new transborder routes and nonstop competition where currently only connecting service is available. More than 250 new potential route opportunities have been identified as part of the DOT application, though specific routes targeted for service will be announced at a later date, following the application’s approval.

Allegiant and Viva Aerobus currently expect to offer flights under the alliance beginning in the first quarter of 2023, pending governmental approval of the application. Per national requirements, Allegiant and Viva Aerobus will in parallel file for alliance approval with regulatory authorities in Mexico, including with the Mexican Federal Economic Competition Commission.

Barclays, Goldman Sachs and White & Case acted as financial and legal advisors for Viva Aerobus.  WilmerHale and Garofalo Goerlich Hainbach, PC, acted as legal advisors for Allegiant.

Viva Air commits to 50 Airbus A320 Family aircraft

Named "Helena", delivered May 4, 2012

Viva Air, the Latin America low cost carrier group owned by Irelandia Aviation, signed a Memorandum of Understanding (MoU) with Airbus for 50 A320 Family aircraft, comprising 35 A320neo and 15 A320ceo. The agreement paves the way for the group’s airlines VivaColombia and Viva Air Peru to base its fleet renewal and network growth on the A320 Family.

 

Viva Air recently launched Viva Air Peru, the sister airline of VivaColombia. Medellin-based VivaColombia operates nine A320 aircraft and Lima-based Viva Air Peru currently operates two, all with a capacity of 180 seats.

Viva Air Peru Route Map:

Viva Air is a Panamanian headquartered group created by Irelandia Aviation and led by Declan Ryan. Irelandia has successfully developed six low cost carriers around the world, namely Allegiant, Ryanair, Tigerair, VivaAerobus, VivaColombia and most recently Viva Air Peru. Combined, the airlines have a fleet of more than 420 aircraft and have carried over a billion passengers.

Copyright Photo: VivaColombia (VivaColombia.com) Airbus A320-214 HK-4817 (msn 1725) MIA (Tony Storck). Image: 930978.