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Volaris and Viva agree merger to create major Mexican budget airline

Mexican low-cost carriers Volaris and Viva have agreed to merge, pending 2026 approval, aiming to expand affordable air travel in Mexico

MEXICO CITY: Two of Mexico’s leading low-cost airlines have agreed to merge.

Viva and Volaris announced the deal on Thursday, which could create one of the country’s largest domestic carriers.

The airlines stated the plan would expand access to low-cost air travel in Mexico.

Under the agreement, the companies will continue to operate under their existing brands and maintain separate operations.

“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico,” said Enrique Beltranena, president and CEO of Volaris.

The deal is expected to close in 2026 and is subject to regulatory approval in Mexico.

It could draw opposition from the budget airlines’ main competitor, Aeromexico.

The potential merger comes amid some instability in the country’s aviation industry.

In October, the US Department of Transportation canceled plans for over 13 routes to the US for Mexican airlines.

Washington made the decision after accusing Mexico of having “illegally cancelled and frozen US carrier flights for three years without consequences.”

Mexican President Claudia Sheinbaum pushed back on the decision.

In November, she said the country would give more flight slots to US carriers at its capital, according to media reports. – AFP

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