Mexico’s Volaris and Viva Merge, Form New Airline Group

Mexican ultra-low-cost carriers Volaris and Viva Aerobus have announced an agreement to form a new airline group by combining their holding companies in a merger of equals. The goal is to accelerate growth in affordable air travel while expanding connectivity within Mexico and to international markets.

Operational benefits for the airlines

According to the joint statement, in recent years, supply chain disruptions and quality issues affecting aircraft manufacturers and engine suppliers have disproportionately impacted ultra-low-cost and smaller airlines. These challenges have driven up operating expenses, delayed aircraft deliveries, and increased maintenance costs.

As part of a larger airline group, Volaris and Viva expect to benefit from economies of scale in areas such as fleet planning, aircraft procurement, and financing. The companies say this structure will support sustainable growth, improve fleet optimization, and lower aircraft ownership costs over time.

What the deal means for passengers

Volaris and Viva will continue operating under their existing air operator certificates and titles of concession. This means passengers will see no changes to routes, schedules, or brand identities.

At the same time, the airlines plan to expand distribution reach and explore collaboration in areas such as customer benefits. This includes potential cooperation around their frequent flier programs, Doters and Altitude, which are among the largest loyalty programs in Mexico’s low-cost segment.

Transaction details

Under the agreement, Viva shareholders will receive newly issued shares in the Volaris Holding Company, while existing Volaris shareholders will retain their shares. Each shareholder group will own 50 percent of the combined airline group on a fully diluted basis.

Both airlines will continue to operate independently with their current leadership teams in place.

The transaction has been unanimously approved by the boards of both companies and remains subject to regulatory review, customary closing conditions, and shareholder approval. The companies expect the deal to close in 2026.

Recently, Volaris partnered with Sabre to distribute its flight content through SabreMosaic Travel Marketplace, marking the first time Volaris has joined a GDS.

Photo by Alex Azabache on Unsplash