Discount airlines Allegiant and Viva Aerobus seek alliance

Budget airlines Allegiant and Viva Aerobus said Wednesday they will seek antitrust immunity from the US and Mexican governments to work together on setting prices, schedules and routes on flights across the border. Las Vegas-based Allegiant said it will invest $50m in the Mexican carrier as part of the deal, which it said was the first of its kind involving two ultra-low-cost airlines. The airlines said they expect to begin flights under the alliance in the first quarter of 2023, pending approvals from the US DoT and Mexico’s Federal Economic Competition Commission. Maurice Gallagher, chairman and CEO of Allegiant Travel Co., is expected to join the board of Viva Aerobus, which is based in Monterrey, Mexico. Gallagher said the deal should lead to lower fares for cross-border travel. Allegiant aims to add new destinations in Mexico including Cancun, Los Cabos and Puerto Vallarta. Viva Aerobus flies to some U.S. destinations but admits it has failed to catch on with American travelers, who don’t know the brand. CEO Juan Carlos Zuazua said the U.S.-Mexico market has become the world’s largest international market and has outperformed others during the coronavirus pandemic.<br/>