Background on Claudia Sheinbaum and her Relevance
Claudia Sheinbaum is the current President of Mexico City, serving as both the head of government and mayor. Appointed in 2018, she succeeded Miguel Ángel Mancera. Before her political career, Sheinbaum was a prominent figure in the scientific community as a researcher and professor at the National Autonomous University of Mexico (UNAM). Her background in science and politics positions her as a key decision-maker in Mexico’s development.
The Viva Aerobus and Volaris Union
Viva Aerobus and Volaris, two of Mexico’s leading low-cost airlines, announced their intention to join forces on December 20, 2023. This merger aims to create a larger national airline, combining their resources and market share.
Details of the Proposed Merger
The executives from both airlines stated that the merger proposal intends to strengthen their negotiating power for higher-cost items, such as acquiring and leasing aircraft. This strategic move will allow them to better compete with larger international carriers.
Market Share and Competition
Together, Viva Aerobus and Volaris account for 69% of passengers transported by low-cost airlines in Mexico through October 2023. Aeromexico, the third-largest airline in Mexico, is expected to oppose this merger due to concerns over increased competition.
President Sheinbaum’s Stance
During her daily press conference, “La Mañanera del Pueblo,” President Sheinbaum expressed her support for the merger, stating that it should be conducted within legal boundaries.
Es algo muy bueno, va a aumentar el turismo y hay más competencia con otras aerolíneas nacionales y extranjeras. #VivaAerobus #Volaris
— Claudia Sheinbaum (@Claudiashein) December 23, 2023
Sheinbaum emphasized that the merger would boost investment and growth in Mexico’s aviation industry, ultimately benefiting both the sector and the country.
Antitrust Commission Review
In response to the announcement, President Sheinbaum confirmed that Mexico’s National Antitrust Commission (CNCP) would review the proposed merger to ensure compliance with antitrust laws.
Key Questions and Answers
- What is the proposed merger about? Viva Aerobus and Volaris, two major Mexican low-cost airlines, plan to join forces to create a larger national carrier.
- Why is this merger significant? The combined entity would control 69% of Mexico’s low-cost airline market share, intensifying competition with Aeromexico and international carriers.
- What is President Sheinbaum’s stance on the merger? She supports the merger, believing it will boost investment and growth in Mexico’s aviation industry while ensuring compliance with antitrust laws.
- What role does the National Antitrust Commission play? The CNCP will review the merger to ensure it adheres to antitrust regulations and does not create a monopoly or unduly restrict competition.
