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VivaAerobus pulls back on US routes as the Viva Group takes aim at Costa Rica

Analysis

A promising transborder push by VivaAerobus has become short lived, leaving the Mexican low cost carrier with only one US route. With the recent suspension of Cancun-Houston, six US routes that VivaAerobus launched over the last year have now been axed.

On most of the routes VivaAerobus faced formidable competition from both large US global network airlines and Mexican rivals Aeromexico, Interjet and Volaris. VivaAerobus' international passenger numbers have grown at a steady clip in 2015, but its larger rivals Aeromexico and Volaris have also directed most capacity growth this year to international operations, particularly to the US.

VivaAerobus' decision to end transborder routes occurs as the Viva Group is reportedly aiming to launch a third affiliate in Costa Rica by the end of 2015. Presently there is no coordination between VivaAerobus and the second airline created by the group VivaColombia, so it remains to be seen if the new airline will have any effect on VivaAerobus' network strategy.

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