Introduction to the Merger
The low-cost airlines Volaris and Viva are merging to create Más Vuelos, a group that will trade on the stock exchanges of Mexico (BMV) and the United States (NYSE), leveraging Volaris’ current financial structure.
Merger Details
- Both Volaris and Viva will hold a 50% stake in Más Vuelos.
- The merger aims to democratize air travel between Mexico, the United States, and some Latin American countries.
- The merger is expected to be consolidated within a year, subject to approval from Mexican antitrust and foreign investment commissions, the U.S. Hart-Scott-Rodino Antitrust Act, and Colombia’s antitrust agency.
Strengths and Expansion
The combined strength of Volaris and Viva, while maintaining independent operations, will allow them to serve 86 domestic and international destinations across 324 routes using Airbus aircraft. This will result in approximately 990 daily operations, with more added through planned growth.
Market Opportunities
- The U.S. market, home to nearly 39 million people of Mexican origin, presents a growing transborder aviation market.
- Both airlines have existing operations in the U.S., capitalizing on this significant market.
Key Figures and Leadership
Roberto Alcántara, the current president of Viva and a prominent Mexican entrepreneur from Acambay, Estado de México, will lead the new group.
Alcántara is also the president of Grupo IAMSA, which controls several passenger transportation brands like Costa Line, ETN Turistar, Futura, Amealcenses, and Costa Line. He entered the aviation industry with VivaAerobus, backed by a partnership with the Irish Ryan family, creators of Ryanair.
After acquiring the foreign partner’s stake a decade later, Alcántara will now lead both Viva and Volaris. Existing leadership teams in both airlines, including CEOs, will remain in their positions to ensure a smooth transition and operational stability.
Future Plans
Under Alcántara’s vision, Viva focused on developing routes at the Aeropuerto Internacional Felipe Ángeles (AIFA) in Mexico City, similar to its success in Monterrey. Volaris, with primary operations in Guadalajara, Tijuana, and Mexico City, maintains strong connectivity to the U.S.
The merger will enable the creation of new regional bases and strengthen mid-sized airports, accelerating growth and development across Mexico.
Key Questions and Answers
- What is the new group’s name? Más Vuelos
- Where will the new group be listed? On the Bolsa Mexicana de Valores (BMV) and the New York Stock Exchange (NYSE)
- Who will lead the new group? Roberto Alcántara, current president of Viva
- What are the primary goals of the merger? To democratize air travel between Mexico, the U.S., and Latin American countries while capitalizing on growth opportunities in the transborder aviation market.
