Cross-country alliance reaches major
milestone in gaining Mexico's
regulatory approval; U.S. Department of Transportation (DOT)
approval still in process
LAS
VEGAS and MEXICO
CITY, Oct. 17, 2022 /PRNewswire/ -- Allegiant
(NASDAQ: ALGT) and Viva Aerobus today announced that the Federal
Economic Competition Commission (COFECE) unconditionally authorized
the Commercial Alliance Agreement between both airlines announced
in December 2021. This alliance also
includes a strategic equity investment by Allegiant in the Mexican
airline.
This agreement, a first-of-its-kind in the airline industry
between two ultra low cost carriers (ULCCs), will seek to expand
low-fare service between Mexico
and the United States. Ultimately,
this alliance will give the public access to safe and reliable air
transport between both countries with a focus on serving
destinations that do not currently offer nonstop service
"COFECE's authorization is one step forward to forging an
alliance that will strengthen a competitive environment with a
larger offering between Mexico and
the U.S.," said Juan Carlos Zuazua,
CEO of Viva Aerobus. "Working as a team, we will boost air travel
and tourism while reaping the economic benefits associated with the
travel industry."
This fully-integrated agreement will enable Allegiant and Viva
Aerobus to have cross-functionality between their respective
loyalty programs, codesharing, sales systems and route networks to
operate flights together with all the benefits and advantages of
both airlines. Through this alliance, Allegiant, which currently
does not serve Mexico, will be
able to rapidly enter and expand in the market, while Viva will be
able to grow its presence in multiple U.S. markets.
"This approval is a critical next step to achieving a historic
and unique alliance between two low-cost carriers in the world's
most dynamic airline market," said John Redmond, CEO of
Allegiant. "Together, we will make it possible for more people to
fly and enjoy the unique culture, traditions and scenic
destinations both countries have to offer."
The joint application requesting approval and antitrust immunity
for the alliance is still pending approval by the U.S. Department
of Transportation (DOT).
Sobre Viva Aerobus
Viva Aerobus is Mexico's
ultra-low-cost airline. It started operations in 2006 and today it
operates the youngest Latin American fleet with 65 Airbus: 40
Airbus A320 and 25 Airbus A321. With a clear vision to give all
people the opportunity to fly, Viva Aerobus has democratized the
airline industry with the lowest fares in Mexico and the lowest cost structure in
America, making their flights the best value offer. For more
information please visit: www.vivaaerobus.com/en
Media contact: Walfred
Castro, Corporate Communication Director, Viva Aerobus : walfred.castro@vivaaerobus.com /
Tarssis Dessavre, Account executive for Viva Aerobus of PRoa
Structura - tdo@proa.structura.com.mx – Mobile. +52 1 55 2751
1709
About Allegiant -
Together We Fly™
Las Vegas-based Allegiant
(NASDAQ: ALGT) is an integrated travel company with an airline at
its heart, focused on connecting customers with the people, places
and experiences that matter most. Since 1999, Allegiant Air has
linked travelers in small-to-medium cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant's all-Airbus fleet serves communities
across the nation, with base airfares less than half the cost of
the average domestic roundtrip ticket. For more information, visit
us at Allegiant.com. Media information, including photos, is
available at http://gofly.us/iiFa303wrtF
Media contact: Phone: 702-800-2020 / Email:
mediarelations@allegiantair.com
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements in this press release
that are not historical facts are forward-looking statements. These
forward-looking statements are only estimates or predictions based
on our management's beliefs and assumptions and on information
currently available to our management. Any forward-looking
statements are based on information available to us today and we
undertake no obligation to update publicly any forward-looking
statements, whether as a result of future events, new information
or otherwise.
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SOURCE Allegiant Travel Company