Allegiant and Viva Aerobus: evolving the ULCC model

One of the most interesting market developments during the pandemic is the unique partnerships that have emerged. The latest - a proposed joint venture between Allegiant Air and Viva Aerobus - is arguably the most intriguing and demonstrates how the ULCC model is evolving.

In essence, the two ultra-low cost operators are combining to accelerate growth in one of the busiest markets in the world. And in Allegiant's case, the proposal solidifies a strategy for international expansion.

Of course, obtaining regulatory approval is the next step, but the would-be partners believe they have a compelling case for injecting fresh ultra-low cost competition into the Mexico-US transborder market.