- CAPA Analysis
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- 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
- Monterrey Escobedo International Airport
- Business model
- Low Cost Carrier
- Domestic | International
- Airline Group
- Part of Grupo Viva
VivaAerobus launched its first services in Nov-2006. The Mexican low-cost carrier operates from its main base at Monterrey Escobedo International Airport providing domestic services to Mexican Tier I cities and leisure destinations as well as to the US. The carrier also operates to other smaller regional centres. VivaAerobus was formed as a result of a strategic alliance between Grupo IAMSA, one of Mexico’s leading bus transportation providers and Irelandia, the investment vehicle of the Ryan family- founders of Ryanair. Irelandia has also been involved in starting sister carrier, VivaColumbia, with both carriers forming part of multinational airline group; Grupo Viva. The airline currently utilises a mix of both Boeing 737 and Airbus A320 aircraft and is undergoing transition to an all-A320 fleet, expected to be complete by 2016.
Location of VivaAerobus main hub (Monterrey Escobedo 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.
268 total articles
VivaAerobus to start service from Mexico to Dallas/Fort Worth International Airport in March of 2015
VivaAerobus says 'difficult' to predict impact on fares from US-Mexico ASA, but will see improvement
50 total articles
Two of Mexico’s largest airlines are encouraged by the country’s economic uptick and what appears to be capacity discipline in the domestic market, which should further help a recovery in yields that both Aeromexico and Volaris began to see in late 2014.
Despite the challenging conditions, Mexico’s domestic market remained fairly stable in 2014 reflected in roughly 8% passenger growth for the year, with the country’s major airlines retaining or growing their market share year-on-year.
Although the positive momentum is a welcome sign after a challenging 1H2014, there is an air of cautiousness underlying the optimism expressed by Aeroemexico and Volaris as the yield improvement is off a low base. As a result each airline plans to direct the bulk of their 2015 capacity growth to international markets.
Austin-Bergstrom Airport capped off 2014 by recording 7% passenger growth after reaching a milestone in Mar-2014 with the debut of its first trans-Atlantic service by British Airways on flights to London Heathrow.
Although it is not a hub for any major airline, Austin does have numerous favourable elements that make it ripe for continued growth, including a strong economy, an unemployment rate lower than the US national average and a relatively young population.
Obviously the airport aims to expand its long-haul offerings; but that could prove difficult in the short term given weak macroeconomic conditions in some trans-Atlantic regions. But during 2015 Austin is regaining transborder flights from Air Canada with flights to Toronto, while US domestic airlines also plan some expansion at the airport.
Grupo Aeromexico is embarking on 2015 with several initiatives under way to strengthen its network to ensure it maintains its stature as Mexico’s leading airline. The company is rebanking its strategic hub at Mexico City while resuming limited operations at nearby Toluca to alleviate some operating constraints at Mexico City Juarez.
Aeromexico is also in the midst of building up its hub at Monterrey and touting a new shuttle product from Mexico City to the country’s busiest business markets. At the same time, the airline is expanding its international footprint with new destinations in Latin America as well as new North American markets.
The network optimisation occurs as Mexico’s economic performance measured by GDP growth looks to improve year-on-year in 2015. Some of the challenges Aeromexico faced in 2014 are lingering into 2015, including pricing traction in Mexico’s domestic market. But Aeromexico seems to be taking the necessary steps to blunt the weakness that still may be present in Mexico’s domestic aviation market through efforts to maximise the vast connectivity it can offer compared with its rivals.
A newly revised air services agreement between Mexico and the US that eases limits on the number of airlines allowed to operate on routes between the two countries is a welcome development for airlines operating in both regions. But it is particularly interesting for Mexico’s airlines given that their penetration in the transborder space still pales in comparison to US airlines operating between the two countries.
The new pact does not take effect until Jan-2016, which means that the lifting of restrictions is some way in the future. But in the meantime Mexico’s airlines still have ample opportunity under the existing agreement, and are no doubt evaluating new opportunities created by the new air services arrangement.
Mexico and the US struck the new accord as all of Mexico’s airlines are making a transborder push to diversify from the domestic market, which has been weaker the last couple of years due to Mexico’s sluggish economy. Key to the execution of the expansion is ensuring demand is robust enough in transborder markets in order to maintain favourable yields on those routes.
Armed with approval to introduce service from Houston Intercontinental to three markets in Mexico, Spirit Airlines has the potential to create a new layer of competitive dynamics in the market as Southwest prepares to add international flights from a new terminal at Houston Hobby in late 2015.
Spirit has not formally announced the launch of new international flights from Houston Intercontinental; but its moves to secure authority for service to Mexico show that it aims to position itself as a formidable competitor to Southwest and legacy airlines alike.
Spirit’s work to gain approval for the new service to Mexico is within the framework of a bilateral that limits the number of airlines on specific routes, so Spirit may be attempting to secure a place in key leisure markets as Southwest plots its international strategy from Houston.
Mexican airlines Aeromexico and Volaris are sticking to their proclaimed strategies of deploying most of their capacity into international markets as the Mexican economy slowly rebounds from a sluggish 2013. Through the first eight months of 2014 each airline increased their international capacity and traffic significantly, betting that yields are stronger in international markets.
The competitive overlap between Aeromexico and Volaris on each airline’s top US transborder markets is not overwhelming, and Volaris has previously stated that it is targeting routes with a higher percentage of visiting, friends and relatives (VFR) travellers.
Aeromexico’s and Volaris’ rival VivaAerobus is also making a new transborder push during 2014, upping competition with Aeromexico and Interjet on some of its international services. It is tough to determine if the push is creating oversupply; but the international growth indicates Mexico’s airlines are attempting to counter weaker yields on the country’s domestic routes.