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Allegiant, Viva Aerobus Announce First-Of-Its-Kind Commercial Alliance Agreement
Fully-Integrated Alliance Between ULCCs Expected To Bring More Nonstop Flights, Lower Fares for Leisure Travel Between the U.S. and Mexico LAS VEGAS, Dec. 1,
About this update from Allegiant Travel Company
[{"type":"text","content":"Fully-Integrated Alliance Between ULCCs Expected To Bring More Nonstop Flights, Lower Fares for Leisure Travel Between the U.S. and Mexico\n\n\nLAS VEGAS, Dec. 1, 2021 /PRNewswire/ -- Allegiant (NASDAQ: ALGT) and Viva Aerobus today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. The alliance is not only the first such venture for Las Vegas-based Allegiant and Viva Aerobus, but is also first-of-its-kind in the airline industry between two ultra low cost carriers (ULCCs). \n\n \n \n \n \n \n \n\n \nAllegiant and Viva Aerobus have submitted a joint application to the U.S. Department of Transportation (DOT) requesting approval of and antitrust immunity for the alliance. Allegiant will also make an equity investment of $50 million in Viva Aerobus, and Allegiant Chairman and Chief Executive Officer Maurice J. Gallagher, Jr. is expected to join the Viva Aerobus Board of Directors. The transactions are also subject to clearance by the Mexican Federal Economic Competition Commission. \nCombining the unique product offerings, networks and market experience of two of the world's fastest-growing ULCCs, the alliance will achieve important public benefits that neither Allegiant nor Viva Aerobus could provide independently.\n\"Allegiant and Viva Aerobus operating together will be a tremendous win for consumers seeking affordable, nonstop travel between the U.S. and Mexico, and will create rippling economic benefits for hospitality sector business across both nations,\" said Allegiant's Gallagher. \"This groundbreaking alliance should reduce fares, stimulate traffic, and ultimately link many new transborder cities with nonstop service. In short, it will bring meaningful ULCC competition to the U.S.-Mexico market for the first time in history.\" \n\"The U.S. – Mexico market is currently the largest international air travel market in the world; during the pandemic it has outperformed any other market due to a strong leisure and VFR (Visiting Friends & Relatives) recovery where both Viva Aerobus and Allegiant have excelled,\" said Juan Carlos Zuazua, chief executive officer, Viva Aerobus. \"This unique ULCC alliance will c...