Introduction
The recent announcement of the potential merger between Viva and Volaris on a Thursday surprised consumers, but it was well-known news within the aviation sector. A week prior, rumors of advanced negotiations circulated, and the companies chose to keep the “big news” under wraps until they were ready.
Similarities in Low-Cost Model Management
The similarity in low-cost model management, including the same type of Airbus aircraft, played a crucial role in driving significant economies of scale.
Competition and Collaboration
Aeroméxico, with its full-service model, is consolidating its operations both within and outside Mexico. Viva and Volaris needed to form a united front to negotiate with aircraft lessors, suppliers, and authorities, as their individual strength is limited, and their common needs are substantial.
Financial Performance of Grupo Más Vuelos
The pro forma financial results of the new Grupo Más Vuelos (holding company controlling Viva and Volaris) indicate a combined annual sales figure of nearly $5.4 billion and an operating cash flow of almost $1.9 billion, with over 60 million passengers served.
Competitive Landscape
Viva and Volaris fiercely compete in various segments, openly acknowledging their rivalry.
Marketing Campaigns
In March, when Volaris celebrated its 19th anniversary and launched the Toluca-Monterrey route, it entered Viva’s territory, sparking advertising responses. One ad from Volaris read: “¡El mishi Sí… te trae regalos! Gana uno de los 19 vuelos para volar con la #1.” Another ad from Viva stated: “¡Deja de andar de básica (esta palabra en color rosa). Maleta documentada desde un peso y carry-on ¡incluida!”
Joint Effort Against Fraud
In August 2024, the directors of both airlines met in Mexico City without ties for a Volaris press conference, an unprecedented event. They invited influencers and celebrities as special guests, who had personalized spaces at the event.
“Unimos alas contra el fraude” (We unite wings against fraud) was the message of the occasion, aiming to prevent the fraudulent purchase of airline tickets.
Volaris released a statement addressing the growing issue of fraud through social media and phone calls, perpetrated by criminals impersonating airline representatives, affecting the assets and travel dreams of many ticket buyers.
Merger Between Viva and Volaris
Sixteen months after their joint effort against fraud, Enrique Beltranena of Volaris and Juan Carlos Zuazu of Viva are once again united by a common cause: a merger, which some airline industry members view as the first step toward acquisition.
Economies of Scale
The similarities in low-cost model management, including the same Airbus aircraft type, were a key factor driving significant economies of scale in the Viva and Volaris integration agreement.
