Viva Aerobus boss says politics grounding Allegiant tie-up

Mexican airline Viva Aerobus believes the U.S. government's pause on reviewing a proposed tie-up with Nevada-based Allegiant Air is political rather than technical, the Mexican carrier's CE said on Wednesday. U.S. regulators suspended the review of the joint venture last year, citing concerns over actions by the Mexican government affecting Mexico City International Airport (AICM). Mexican officials and executives have said the concerns referred to a government-mandated move of cargo flights from the capital's main airport to a newer, farther-away airport spearheaded by the president, as well as a reduction in take-off and landing slots at AICM. "I would think (it's political)," Viva CEO Juan Carlos Zuazua told reporters. "Obviously we're in the middle of election season in the United States right now, we don't know if it will be before or after, but let's hope (the tie-up is passed soon)." The U.S. Department of Transportation (DOT), which has alleged the airport changes are to the detriment of existing carriers and potential new entrants, also moved to unwind a similar joint venture between Delta Air Lines and Aeromexico this year. Mexico has seen a boom in tourism from the United States in the years after the COVID-19 pandemic, however Mexican airlines have seen their capacity hit by engine issues, plane shortages and the airport slot limitations.<br/>