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Mexico’s LCC Volaris continues to bolster its network breadth internationally and domestically

Analysis

Mexican low cost airline Volaris is continuing both domestic and international expansion during 2015, but adhering to previous projections that the bulk of its capacity growth will be deployed into international markets, including its first flights outside the US transborder market.

Domestically, Volaris appears to be increasing its competitive overlap with VivaAerobus, the smallest of the four largest Mexican airlines, adding some routes where VivaAerobus previously held monopoly status, from bases where it can leverage positions of strength.

Volaris seems well positioned to take advantage of a still-slow recovery in Mexico's domestic market while branching out internationally where it can gain more yield traction to strategically diversify its network into markets ripe for low cost service.

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