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VivaAerobus

IATA Code
VB
ICAO Code
VIV
Corporate Address
Aeropuerto de Monterrey, Terminal C, Zona de carga
Carretera Miguel Alemán Km. 24
Apodaca, Nuevo León, México
C.P. 66600
Website
http://www.vivaaerobus.com
Main hub
Mexico City Juarez International Airport
Country
Mexico
Business model
Low Cost Carrier
Network
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 currently operates a mix of both Boeing 737 and Airbus A320 aircraft and is undergoing a transition to an all-A320 fleet, expected to be complete by 2016.

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.


 
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223 total articles

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41 total articles

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Southwest Airlines adds a new competitive dimension on routes to Mexico and the Caribbean

8-Jul-2014 6:15 PM

Southwest officially became an international airline in early Jul-2014, when it transitioned service operated by its AirTran Airways subsidiary to its own brand. The acquisition of AirTran in 2010 allowed Southwest to take a low-risk approach to introducing its own branded flights to international destinations.

For years prior to acquiring AirTran, Southwest often talked about its aim to eventually extend its domestic network beyond the US borders. Purchasing AirTran allowed Southwest a low-cost and low-risk way to fully study and understand the nuances of operating to Mexico and the Caribbean before assuming the routes under its own brand - which is obviously sacred to the company.

Even as the expansion into international markets is a key pillar of Southwest’s long-term strategy, the reality is markets outside the US will only comprise a small portion of Southwest’s capacity in the near-to-medium term. But as Southwest grows internationally it may find itself facing increasing competition from Spirit and JetBlue, raising interesting questions about Southwest’s longer-term pricing traction and revenue performance on some international routes.

Tough market conditions for Mexico's airlines continue to drag down Volaris’ financial performance

15-May-2014 11:30 PM

A difficult market climate is persisting in Mexico’s aviation business, creating challenges for the country’s airlines in gaining pricing traction – a problem that plagued carriers throughout much of 2013 and continues in 2014.

Slow economic growth in Mexico was one factor contributing to a 1Q2014 loss by ultra low-cost carrier Volaris, which also continued to face pressure in some of its markets from capacity increases by its major competitor Aeromexico.

Similar to sentiments Volaris has expressed in the past, the carrier believes there is potential for improvements in Mexico’s economy. But the airline is also taking steps to mitigate Mexico’s economic weakness to improve its fortunes.

Mexican airlines review Part 4: Aeromexico focuses on keeping its edge during tenuous times

23-Mar-2014 6:03 PM

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 airlines review Part 3: Volaris believes it can rebound from a tough 2013

19-Mar-2014 9:10 PM

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.

Mexican airlines review Part 2: Is Interjet emerging as Mexico’s true hybrid carrier?

10-Mar-2014 10:55 PM

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 airlines review, Part 1: VivaAerobus faces tough conditions in 2014, postponing its IPO

6-Mar-2014 10:00 PM

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.

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