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Volaris and Viva Aerobus Agree to Merge, Keeping Separate Brands

The tie-up faces regulatory review in Mexico with closing targeted for 2026.

Planes of the Mexican low-cost airline Volaris are seen on the tarmac at the General Abelardo L. Rodriguez International Airport, in Tijuana, Mexico December 9, 2024. REUTERS/Jorge Duenes
Volaris Airlines said its merger with rival Viva would would expand access to low-cost air travel in Mexico

Overview

  • The carriers issued a joint statement confirming an agreement to combine while continuing to fly under their existing brands and maintain their operations.
  • The transaction is subject to approval by Mexican authorities and could face opposition from competitor Aeromexico, AFP reported.
  • Reuters previously reported the structure as a merger of equals with a 50–50 holding company, a detail not specified in the announcement.
  • Recent U.S. decisions blocking more than a dozen MexicoU.S. routes after disputes over Mexico City slot handling and cargo moves form a key backdrop to the deal.
  • U.S. airlines carried over half of Mexico’s international passengers through October while Mexican carriers were just under 30%, highlighting the competitive imbalance.