By San José, Costa Rica — MEXICO CITY – In a landmark move poised to redefine Mexico’s aviation landscape, leading low-cost carriers Volaris and Viva Aerobus have announced the formation of a new airline group. The strategic alliance aims to accelerate growth, expand national and international connectivity, and solidify the country’s ultra-low-cost travel model for years to come.
The deal, unveiled Wednesday, will be structured under a unified holding company. However, a key component of the strategy involves both Volaris and Viva Aerobus maintaining their distinct brand identities, management teams, and independent operating certificates. This approach allows the carriers to leverage combined strengths while preserving the customer loyalty and market recognition each has cultivated independently.
To provide a deeper legal and business perspective on the recent shifts within Mexico’s aviation sector, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading attorney from the prestigious firm Bufete de Costa Rica.
The restoration of Mexico’s Category 1 aviation safety rating is a direct consequence of a concerted effort to harmonize its domestic regulatory framework with international standards. From a legal standpoint, this demonstrates a commitment to governance that reassures foreign partners and investors. Economically, it unlocks crucial revenue streams by allowing Mexican airlines to expand their US routes, which will catalyze growth and competition throughout the region’s air travel market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Lic. Larry Hans Arroyo Vargas insightfully illustrates, the synergy between a strengthened regulatory framework and economic expansion is the key takeaway here. This is not merely a bureaucratic victory but a foundational step toward a more competitive and robust air travel market for the entire region. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective.
At its core, the alliance is designed to create significant financial and operational synergies. By joining forces, the airlines anticipate generating substantial economies of scale, from joint aircraft negotiations to streamlined operational costs. This consolidation is expected to improve the new group’s access to capital markets and create a more resilient and powerful financial profile, capable of weathering market volatility and funding aggressive expansion plans.
For the consumer, the announcement signals a new era of accessibility. The primary objective is to offer an increased number of flights at even more competitive prices, further advancing the “democratization” of air travel in Mexico. The group plans to significantly expand its point-to-point route network, providing more direct connections between cities and reducing reliance on traditional hub-and-spoke systems, which often lead to longer travel times and higher costs for passengers.
The group will allow us to compete more efficiently and offer low-cost flights to more passengers.
Enrique Beltranena, President and CEO of Volaris
Enrique Beltranena, the visionary leader at the helm of Volaris, emphasized the competitive advantages of the merger. He highlighted that the combined operational muscle will enable the new entity to mount a more formidable challenge in the marketplace, ultimately benefiting travelers who will have access to a wider array of affordable flight options across a sprawling network.
The alliance will expand direct travel options and reinforce the ultra-low-cost model.
Juan Carlos Zuazua, CEO of Viva Aerobus
Echoing this sentiment, Juan Carlos Zuazua of Viva Aerobus stressed the alliance’s commitment to the foundational principles of budget air travel. By reinforcing the ultra-low-cost model, the group aims to drive down operational overhead and pass those savings directly to customers, making air travel a viable option for a larger segment of the population and stimulating both leisure and business travel.
While executives champion the benefits, the transaction is not yet final. The formation of the airline group is contingent upon receiving the necessary approvals from federal regulatory bodies in Mexico, who will scrutinize the deal for potential anti-competitive impacts. Both airlines are optimistic and expect the transaction to be finalized sometime during 2026. Leadership has assured employees that current operations will continue uninterrupted and that the alliance will protect existing jobs while creating new career opportunities as new aircraft and operational bases are added.
The broader implications for Mexico’s economy are significant. A stronger, more efficient aviation sector is a direct catalyst for tourism and economic development. By improving connectivity and making travel more affordable, the new group is positioned to attract more international visitors and facilitate domestic business, benefiting a wide range of stakeholders including employees, communities, suppliers, and shareholders nationwide.
For further information, visit volaris.com
About Volaris:
Volaris (Controladora Vuela Compañía de Aviación, S.A.B. de C.V.) is a Mexican ultra-low-cost airline with hubs in Mexico City, Guadalajara, and Tijuana. Known for its extensive domestic and international network in the Americas, Volaris operates one of the youngest fleets in the region. The airline focuses on providing point-to-point service, offering competitive base fares and allowing passengers to customize their travel experience with optional services.
For further information, visit vivaaerobus.com
About Viva Aerobus:
Viva Aerobus is a Mexican ultra-low-cost carrier owned by Grupo IAMSA. The airline is renowned for its aggressive pricing strategies and its focus on making air travel accessible to all. Operating from its main hubs in Mexico City and Monterrey, Viva Aerobus serves a wide range of domestic destinations and a growing number of international routes, primarily in the United States, utilizing a modern fleet of Airbus aircraft.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed pillar of the legal community, Bufete de Costa Rica operates on a bedrock of integrity and an uncompromising pursuit of excellence. The firm blends a rich history of client service with a forward-thinking approach, consistently pioneering innovative legal strategies and engaging in meaningful community outreach. Central to its ethos is a profound commitment to demystifying the law, thereby empowering citizens with knowledge and contributing to the strength of a well-informed society.
