Viva Volaris
The Mexican aviation market is undergoing a structural transformation following a strategic agreement to integrate its two largest low-cost operators under a single parent company. Viva and Volaris formalized the creation of Mexican Airline Group, a new holding company that will consolidate the ownership of both carriers in a transaction designed as a merger of equals, according to our associate media outlet Aeroin.
The operation grants shareholders of both companies a 50% stake in the new entity. Viva shareholders will receive newly issued shares of the Volaris holding company, which will maintain its public listing on the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE).
Despite the financial integration, projected for definitive execution in 2026, both airlines will preserve their brands, commercial identities, operating structures, and their respective Air Operator Certificates (AOC) independently. The group’s governance will be led by Roberto Alcántara Rojas, current Chairman of the Board of Viva, while the executive leadership of each airline remains unchanged.
Synergies and regional expansion
The technical justification for the merger lies in generating economies of scale to mitigate fleet ownership costs and optimize access to capital markets. By sharing technological infrastructure and reservation systems, the companies aim to capture operational synergies.
Regarding route networks, the group plans an aggressive expansion in point-to-point connectivity, prioritizing markets in the United States, Central America, South America, and the Caribbean, in addition to consolidating its domestic presence.
“We estimate that the formation of the new airline group will allow us to drive the growth of aviation in Mexico, in line with the low-cost model that has revolutionized our industry,” explained Enrique Beltranena, President and CEO of Volaris. The executive added that improving distribution capacity will be key to competing more effectively in international markets by reducing fleet ownership costs.
For his part, Juan Carlos Zuazua, CEO of Viva, noted that the goal is to offer low fares and more point-to-point flights to more cities, benefiting both passengers and local economies. The executive emphasized that the Ultra Low-Cost Carrier (ULCC) strategy is non-negotiable to maintain passenger loyalty.
Strategic focus on AIFA
The Mexican Airline Group roadmap places a special focus on the Mexico City metropolitan area. A significant increase in operations at Felipe Ángeles International Airport (AIFA) is contemplated, along with the opening of new operating bases in strategic points across the country.
In the commercial sphere, the interoperability of the Doters and Altitude loyalty programs will be evaluated, together with the implementation of codeshare agreements to maximize load factors on international routes. The agreement also establishes a transition period where Airbus aircraft maintenance and procurement processes will be aligned, seeking to optimize the shared supply chain.
The numbers behind the low-cost giants
The combination of both companies creates a global-scale competitor with the following operational metrics as of year-end 2024:
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Fleet: Volaris operates 111 A320 family aircraft (81 A320s and 30 A321s) with 118 pending orders. Viva has 97 units (62 A320s and 35 A321s) and 13 pending deliveries.
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Financials: Volaris reported revenues of USD 3.34 billion. Viva reported USD 2.702 billion, with a higher net profit (USD 235 million compared to its partner’s USD 126 million).
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Traffic: Together they transported 56.6 million passengers in 2024, maintaining average load factors above 87%.
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Workforce: The consolidated group will employ over 12,000 direct workers.
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