Mexico’s two largest low-cost airlines, Volaris and Viva, have decided to set aside competition for the time being and merge under a common holding structure. The parties announced that they will establish a new aviation group, while both airlines will retain their operational independence and continue flying under their own brands.
The companies aim for this structure to reduce fleet ownership costs, improve access to financing, and strengthen overall financial resilience. It is noted that global supply chain disruptions, delays at aircraft and engine manufacturers, and rising costs have put particular pressure on ultra-low-cost carriers, making economies of scale increasingly important.
Volaris and Viva emphasized that there will be no changes to their business models. Their focus on point-to-point routes, low fares, and demand-stimulating operations will continue. According to the companies, each new aircraft added to the fleet creates employment for approximately 60 people, while the expanded route network will benefit not only passengers but also regional economies.
The agreement is subject to approval by regulatory authorities, with the process expected to be completed in 2026. If implemented, Mexico will gain a new, stronger competitor in the ultra-low-cost segment across both domestic and international markets in Latin America.
