Allegiant and Viva Aerobus Announce New Ultra-Low-Cost Alliance

Two of the biggest American and Mexican ultra-low-cost airlines are about to join forces.

America’s Allegiant and Mexico’s Viva Aerobus have announced an industry-first, ultra-low-cost airline alliance as the demand for cross-border travel is as strong as ever.

“The U.S. – Mexico market is currently the largest international air travel market in the world; during the pandemic, it has outperformed any other market due to a strong leisure and VFR [visiting friends and relatives] recovery where both Viva Aerobus and Allegiant have excelled,” said Juan Carlos Zuazua, Chief Executive Officer at Viva Aerobus.

Let’s review what this alliance could mean for you.

An Airline Industry First: A Fully-Integrated Ultra-Low-Cost Alliance

Las Vegas-headquartered Allegiant’s current route network is solely domestic within the U.S., operating in over 130 cities and catering primarily to vacationers.

However, Viva Aerobus’ predominantly Mexico-based route map already has an international footprint, with destinations in Colombia, Cuba, and the U.S.

The new alliance will mean that cities in the U.S. where both airlines fly to will act as streamlined transfer points for passengers from one airline to the other.

These airports include Chicago (ORG), Cincinnati (CVG), Las Vegas (LAS), Los Angeles (LAX), and San Antonio (SAT).

There is also talk of the alliance enabling new nonstop routes for both airlines between Mexico and the U.S., with over 250 possible new routes already having been identified.

New destinations for Allegiant are likely to include popular Mexican vacation spots like Cancún (CUN), Los Cabos (SJD), and Puerto Vallarta (PVR).

Viva Aerobus will also benefit from new nonstop links to the U.S. and is expected to tap into Las Vegas (LAS) and cities in Florida where Allegiant already has a strong presence.

“Allegiant and Viva Aerobus operating together will be a tremendous win for consumers seeking affordable, nonstop travel between the U.S. and Mexico, and will create rippling economic benefits for hospitality sector business across both nations,” said Maurice J. Gallagher, Jr., Chairman and Chief Executive Offer at Allegiant.

As well as the route network expansions, the alliance will also mean codesharing is possible, giving passengers the opportunity to check bags to their final destination, even on Allegiant- and Viva Aerobus-operated itineraries where a nonstop option isn’t available.

Allegiant is also expected to make an equity investment of $50 million Viva Aerobus, further strengthening the relationship between the 2 airlines.

Passengers can expect to be able to benefit from the new alliance from the first quarter of 2023.

Final Thoughts

Roll on 2023. The alliance between Allegiant and Viva Aerobus is certainly something to look forward to.

It will create new routes and seamless travel possibilities between the U.S. and Mexico that will benefit both U.S.- and Mexico-bound travelers alike.