Allegiant Air is teaming up with Mexico’s Viva Aerobus for a first-of-its-kind low-cost carrier cross-border alliance.
It would enable Allegiant to expand into Mexico and develop new low-cost routes between the two countries.
"This ground-breaking alliance should reduce fares, stimulate traffic, and ultimately link many new transborder cities with nonstop service," Allegiant Chairman and Chief Executive Officer Maurice J. Gallagher, Jr. said.
"It will bring meaningful competition to the U.S.-Mexico market for the first time."
Allegiant will invest $50 million in Viva Aerobus and Allegiant Chairman and CEO Maury Gallagher will take a seat on Viva Aerobus’ board.
"Allegiant and Viva Aerobus operating together will be a tremendous win for consumers seeking affordable, nonstop travel between the U.S. and Mexico, and will create rippling economic benefits for hospitality sector business across both nations," Gallagher added.
New routes under consideration include vacation hotspots Cancun, Los Cabos and Puerto Vallarta.
Allegiant currently serves more than 100 cities in the U.S. but non to Mexico.
If it gets approved, flights could begin in the first quarter of 2023.
