Summary
- Allegiant Air and Viva Aerobus are searching for to create a business partnership to expand their brands and offer recent nonstop service from small to mid-sized US cities to Mexican leisure destinations, creating pricing pressure.
- The US Department of Transportation has suspended the review of their proposed three way partnership as a result of Mexico’s lack of full implementation of the US-Mexico air transportation agreement, citing recent actions by the Mexican government which have impacted US carriers.
- Allegiant Air argues that the main target ought to be on creating meaningful competition within the transborder market quite than legislating access to Mexico City, as their alliance with Viva Air will primarily deal with beach and leisure destinations in Mexico, with only a small percentage of routes touching Mexico City.
Earlier this month, Allegiant Air and the US Department of State met to debate the proposed three way partnership with Mexico’s Viva Aerobus. While the contents of the meeting are usually not known, Allegiant Air attached a presentation during which it requests the Department of Transportation (DOT) to deal with creating Earlier this month, the DOT suspended the review of the proposed three way partnership between Viva Aerobus and Allegiant Air, citing Mexico’s lack of full implementation of the US-Mexico air transportation agreement.
A view at their partnership
Viva Aerobus and Allegiant Air, two North American ultra-low-cost carriers, want to launch a business partnership. Their goal is to expand their brands across the border, offering recent nonstop service from small to mid-sized US cities to Mexican leisure destinations, creating downward pricing pressure.
Photo: Vincenzo Pace | Easy Flying.
While the DOT didn’t specify which actions were taken, the Mexican government has recently forced the relocation of all cargo flights from Mexico City International Airport (MEX) to Felipe Ángeles International Airport. Moreover, the federal government reduced the variety of hourly slots at MEX from 61 to 52 late last 12 months, with more cuts (from 52 to 43) happening this coming winter season to deal with the saturation levels on the hub.
The main focus ought to be on increasing the competition
Following those developments, Allegiant Air met with the US Department of State. The corporate argued that while transparency is a priority (with regards to access at Mexico City), the newest actions taken by the Mexican government
Allegiant said that Mexico City is very constrained,