- CAPA Analysis
- Schedule Analysis
- Route Maps
- US Route Data
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- Aeropuerto de Monterrey, Terminal C, Zona de carga
Carretera Miguel Alemán Km. 24
Apodaca, Nuevo León, México
- Main hub
- Mexico City Juarez International Airport
- Business model
- Low Cost Carrier
- Domestic | International
VivaAerobus is a Mexican low-cost carrier based at General Mariano Escobedo International Airport in Monterrey. The LCC was established in 2006 as a strategic alliance between Mexican bus operator IAMSA and Irelandia, an investment vehicle of Ireland's Ryan family. VivaAerobus operates to over 25 destinations across Mexico and two in the United States. The airline operates a fleet of Boeing 737 and Airbus A320 aircraft.
Location of VivaAerobus main hub (Mexico City Juarez International Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider VivaAerobus fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
197 total articles
39 total articles
Mexico’s largest, and sole global, carrier Grupo Aeromexico appears to be executing a dual strategy in 2014, split between retaining its commanding presence in the domestic market while leveraging its international networks and partnership roster to ensure it can weather the country’s economic uncertainty.
Two of the carrier’s major milestones in 2014 are the introduction of the Boeing 787 widebody and overhauling its operations in Mexico City through expanding connecting banks and eliminating small jets from its largest hub.
As the competitive dynamics in Mexico’s domestic space continue to shake out, Aeromexico is pressing forward to build a strong foundation to withstand increasing pressure on routes within Mexico.
Mexican ultra low-cost carrier (ULCC) Volaris is exuding confidence that it can attain margin expansion in 2014 even as it predicts an economic rebound in Mexico will not take hold until the second half of the year.
Volaris' bullishness follows a challenging 2013 for all of Mexico’s carriers as the country’s GDP was a weak 1%. The weak economy resulted in yields at both Aeromexico and Volaris sinking, and Volaris recording a loss for 4Q2013 and a 30% fall year-over-year in profits for FY2013.
After battling pressure from Aeromexico at its third largest base in Guadalajara during 2013, Volaris predicts some rationality should be restored to the market in 2014 even as it establishes a new base in Monterrey, which will increase capacity in a market important to all four of Mexico’s major carriers.
As Mexico’s aviation industry continues to evolve post-deregulation, the country’s largest carriers are working to entrench themselves in their respective business models. With Aeromexico clearly the country’s full-service carrier and VivaAerobus and Volaris adopting more ultra low-cost strategies, Interjet is assuming the role of Mexico’s hybrid carrier – touting both a more upscale product and lower costs.
Since its inception roughly eight years ago, Interjet has grown quickly, and is consistently ranked as Mexico’s second largest domestic carrier behind Grupo Aeromexico. Now it seems as if Interjet and Volaris trade off for those rights as each carrier has dedicated some of its expansion to international markets. Interjet now serves four Latin American markets and five destinations in North America.
Interjet seems poised to solidify its hybrid model in 2014 as headlines have emerged that it is looking to align with foreign carriers and aims to keep its less-dense fleet configuration as Volaris adds seats to its Airbus A320s to further lower cost. It also continues to add smaller 93-seat Sukhoi Superjet 100s to its fleet, which reflects Interjet’s strategy of offering its hybrid product in Mexico’s smaller markets.
Mexican low-cost carrier VivaAerobus began 2014 on a down note – cancelling a planned public offering valued at roughly USD226 million as it concluded market conditions were too dour and unpredictable to achieve an IPO successfully.
The cancellation occurred as VivaAerobus prepared for the first delivery of an Airbus A320. Its acceptance of the new jet marks a pivotal transition from older Boeing 737-300 narrowbodies to similar aircraft operated by its fellow low-cost rivals Interjet and Volaris.
VivaAerobus’ decision to shutter accessing the public markets does leave some questions as to how it will finance the 52 Airbus jets it has on order as six of the aircraft are scheduled for delivery in 2014. On a broader scale, VivaAerobus remains the smallest carrier among the four largest Mexican airlines, three of which (including VivaAoerbus) define themselves as low-cost carriers. If the projected rebound in Mexico’s economy fails to materialise during 2014, VivaAerobus’ greater exposure to the domestic market could create challenges for the carrier’s yet-to-be defined strategy for the future.
Mexican carriers Aeromexico and Volaris managed to turn profits during FY2013 despite the country’s sagging economic conditions that produced GDP growth of just over 1% in 2013.
Mexico’s dour economic conditions resulted in each carrier facing yield weakness during 4Q2013, which triggered a quarterly loss at Volaris. No improvements in pricing traction are expected until 2H2014 at the earliest, which means in the short term Aeromexico and Volaris will continue to trade yield for load factors while preparing for double-digit capacity growth during FY2014.
Given the expected slow recovery in Mexico’s domestic market, each carrier has opted to steer a larger portion of their planned capacity increases into international markets, where presumably the two airlines can price fares at levels to offset continued pricing weakness on domestic routes.
Aeromexico, Mexico’s largest network carrier, plans a revamp to its Mexico City hub during 2014 to maximise connectivity as part of its strategy to strengthen the airport as a connection point to the numerous markets it serves in Latin America and solidify its place in the domestic market.
The carrier also plans to phase out its smaller 50-seat Embraer ERJ-145 jets in Mexico City by YE2014 to improve its competitive position and increase its seat count at the slot-controlled airport. Other changes Aeromexico plans to implement includes the introduction of a new shuttle product in some of Mexico’s busiest business markets.
Aeromexico’s product and schedule improvements occur as Mexico’s four largest carriers – Aeromexico, Interjet, Volaris and VivaAerobus – become firmly entrenched in their respective business models and continue to expand in order to ensure they capture their fair share of Mexico’s domestic market. As a comprehensive full service carrier, Aeromexico needs to position itself as a competitive force in all passenger segments in order to sustain its stature as Mexico’s leading airline. Introduction of a new low fare product Contigo in 2013 in transborder markets from Guadalajara was an imortant move.