MEXICAN ANTITRUST COMMISSION AUTHORIZES COMMERCIAL ALLIANCE AGREEMENT BETWEEN ALLEGIANT AND VIVA AEROBUS
Allegiant (NASDAQ: ALGT) and Viva Aerobus have announced that Mexico's Federal Economic Competition Commission (COFECE) has authorized their Commercial Alliance Agreement. This landmark agreement between two ultra-low-cost carriers aims to enhance low-fare travel between Mexico and the U.S., benefiting travelers with expanded flight options. The alliance includes an equity investment by Allegiant, allowing it to enter the Mexican market as Viva Aerobus strengthens its presence in the U.S. The U.S. Department of Transportation's approval is still pending.
- COFECE approval marks a significant milestone for the Commercial Alliance Agreement.
- The strategic equity investment by Allegiant facilitates market entry into Mexico.
- The alliance is designed to enhance low-fare options and expand route networks.
- Approval from the U.S. Department of Transportation is still pending, potentially delaying the alliance's benefits.
Cross-country alliance reaches major milestone in gaining Mexico's regulatory approval; U.S. Department of Transportation (DOT) approval still in process
LAS VEGAS and MEXICO CITY, Oct. 17, 2022 /PRNewswire/ -- Allegiant (NASDAQ: ALGT) and Viva Aerobus today announced that the Federal Economic Competition Commission (COFECE) unconditionally authorized the Commercial Alliance Agreement between both airlines announced in December 2021. This alliance also includes a strategic equity investment by Allegiant in the Mexican airline.
This agreement, a first-of-its-kind in the airline industry between two ultra low cost carriers (ULCCs), will seek to expand low-fare service between Mexico and the United States. Ultimately, this alliance will give the public access to safe and reliable air transport between both countries with a focus on serving destinations that do not currently offer nonstop service
"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.," said Juan Carlos Zuazua, 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."
This fully-integrated agreement will enable Allegiant and Viva Aerobus to have cross-functionality between their respective loyalty programs, codesharing, sales systems and route networks to operate flights together with all the benefits and advantages of both airlines. Through this alliance, Allegiant, which currently does not serve Mexico, will be able to rapidly enter and expand in the market, while Viva will be able to grow its presence in multiple U.S. markets.
"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," said John Redmond, CEO of Allegiant. "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."
The joint application requesting approval and antitrust immunity for the alliance is still pending approval by the U.S. Department of Transportation (DOT).
Viva Aerobus is Mexico's ultra-low-cost airline. It started operations in 2006 and today it operates the youngest Latin American fleet with 65 Airbus: 40 Airbus A320 and 25 Airbus A321. With a clear vision to give all people the opportunity to fly, Viva Aerobus has democratized the airline industry with the lowest fares in Mexico and the lowest cost structure in America, making their flights the best value offer. For more information please visit: www.vivaaerobus.com/en
Media contact: Walfred Castro, Corporate Communication Director, Viva Aerobus : walfred.castro@vivaaerobus.com / Tarssis Dessavre, Account executive for Viva Aerobus of PRoa Structura - tdo@proa.structura.com.mx – Mobile. +52 1 55 2751 1709
Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's all-Airbus fleet serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF
Media contact: Phone: 702-800-2020 / Email: mediarelations@allegiantair.com
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
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SOURCE Allegiant Travel Company
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