Dec 1, Reuters -- Mexico - Viva Aerobus and U.S. peer Allegiant Air have announced a commercial alliance that will allow them to offer flights between the United States and Mexico in what they said is the first tie-up of its kind between low cost carriers.
Allegiant will make a $50 million equity investment in Viva Aerobus, pending regulatory approval.
The deal aims to connect many new transborder cities, on routes that had previously required connections, Viva Aerobus said in a statement.
Allegiant and Viva Aerobus operating together will be a huge win for consumers who are seeking nonstop travel between the U.S. and Mexico, and will create rippling economic benefits for the hospitality sector, said Maurice Gallagher, Allegiant Chairman and Chief Executive Officer.
Allegiant and Viva Aerobus expect to offer flights under the deal beginning in the first quarter of 2023, it added.
The tie-up will be approved by the U.S. Department of Transportation and the Mexican Federal Economic Competition Commission, the antitrust regulators of both countries.