Discount Airlines Allegiant and Viva Aerobus Seek Profit-Sharing Alliance
- Carriers seek approval to coordinate flight schedules, fares
- Partnership hopes to begin flights in first quarter of 2023
Allegiant Airlines and Grupo Viva Aerobus SAB are seeking government approvals in the U.S. and Mexico for an alliance that would allow them to jointly plan fares, flight schedules and routes -- the first venture of its kind for deep-discount carriers. Allegiant also will invest $50 million for an undisclosed stake in its Mexican partner.
The airlines’ agreement would boost transborder competition at lower fares, they said. Allegiant, a unit of Allegiant Travel Co., would begin to offer flights to Mexico, while Viva Aerobus would expand its customer base by tapping the distribution network of its U.S. partner. Flights under the deal would start in the first quarter of 2023, pending approval by both governments for the antitrust immunity needed to coordinate pricing.