A week after Mexican ultra-low-cost carrier Viva Aerobus and Allegiant Air applied to the US Department of Transportation (DOT) for a transborder commercial alliance, the US discount carrier’s chief executive Maurice Gallagher says Mexico is a “green field” that holds many possibilities for the airline. Speaking publicly about the joint venture for the first time since its announcement on 1 December, Gallagher says Allegiant and Viva are “cut from the same cloth”, and have similar ambitions for their own – and now each other’s - budget-conscious customers. “If you want to go to Mexico now you are connecting through a hub,” Gallagher says during a keynote address at the Future Travel Experience Global conference in Las Vegas on 8 December. But within the framework of the future alliance with Viva, Allegiant has a list of “40-some cities” from which it can now consider introducing what he calls ”a leisure nonstop product”. “We have 1,000 more routes on top of our current 600 that are out there for us to harvest in the next couple of years,” he adds. In Las Vegas-based Allegiant, Viva would get a partner that can help it reach a wider client base north of the border. “Trying to penetrate the traditional US customer has been difficult for them,” Gallagher adds. “They just don’t have the resources.”<br/>
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Transat AT, owner of Canadian leisure carrier Air Transat, says increased load factors helped reduce losses in the company’s fiscal fourth quarter, and that demand is set to rise as passenger confidence improves. The Montreal-based company says on 9 December that its loss for the fourth quarter, which ended on 31 October, fell by half, to C$121m (US$95m) from C$238m during the same period one year ago. For fiscal year 2021, the company lost C$390m, compared to C$497m in its FY2020. The company reported Q4 revenue of C$63m, more than double the C$28m it earned in Q4 2020. Transat has reduced monthly cash burn to C$15m. “Since we resumed operations on July 30, business has been growing steadily,” says CE Annick Guerard. “We met and exceeded our targets for resumption of operations in the last quarter, and reduced our use of cash. The winter season that is now beginning will see the continuation of our return to more-significant volumes. While we remain cautious given the evolving variants, we remain optimistic that we’re on track to returning to normal.” The company says it is continuing its fleet transformation and pursuing an alliance strategy after regulators in Europe nixed a potential merger with Canada’s heavyweight Air Canada in April. Last month, Air Transat said it would launch a code-share agreement with Calgary-based competitor WestJet for transatlantic travel. Pending regulatory approval, Air Transat flights to some cities in Europe will carry WestJet’s code, and some WestJet flights in North America will carry Transat’s, from early 2022. <br/>
Canada Jetlines, which has promised to launch a low-cost airline for years, is now setting its sights on beginning flights by Q2 2022. The Vancouver-based company, which has gone through numerous top management changes since coming onto the scene in 2015, says on 9 December that it has acquired its first aircraft, a used Airbus A320. That aircraft is scheduled to go into the paint shop on 18 December. Its interior will be refurbished in January before the jet arrives in Canada in February, executives say. The pandemic has created “a rare opportunity” to start a new airline, says chief executive Eddy Doyle. While fixed costs have remained stable, aircraft are much cheaper than they were two years ago. “So many airplanes are available in the market so that it provides great opportunities,” he says. Chairman of the board Ryan Goepel adds, “The only real differentiation you can get is what you acquire your aircraft at. We are getting the rates 50% of what they were pre-Covid. That builds a sustainable advantage.” Jetlines says it hopes to get two more A320s by July 2022, three more by June 2023 and five more by June 2024. In mid-2025 the airline aims to have a fleet of 15 aircraft. They will all be configured in a single class, with 180 seats. <br/>