VivaAerobus plans a transborder push. Is this the start of new phase for Mexico's quieter LCC?

Mexican low-cost airline VivaAerobus is making a US transborder push in 2H2014 after flirting with the market during the past few years with various routes that were ultimately culled.

Presently VivaAerobus operates a single transborder route, offering flights from its base in Monterrey to Houston Intercontinental. Its decision to re-launch some transborder flights and enter into new US markets is likely driven by its introduction of more fuel efficient Airbus A320s during 2014, and challenges faced by all Mexico's domestic airlines in recovering pricing traction as a result of tenuous economic conditions in the country.

Armed with newer aircraft and a knowledge of transborder market dynamics, VivaAerobus has a reasonable chance of success on its new routes. But in some of the markets it faces familiar competitors that are also looking to improve their fortunes by exploiting opportunities for better margins from transborder service.