- CAPA Analysis
- Schedule Analysis
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- Fast Fact Report
- Airline Status
- 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 Aviation, the investment vehicle of the Ryan family- founders of Ryanair. Grupo IAMSA secured Irelandia's 49% stake in VivaAerobus in 2016. Irelandia, formerly a minority stake holder in VivaAerobus, involved in starting sister carrier, VivaColombia, with both carriers forming part of multinational airline group; Grupo Viva. The airline concluded its fleet modernisation plan, phasing out its last Boeing 737-300 on 28-Oct-2016 and transitioned to an all A320 fleet.
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.
71 total articles
Mexican Airlines are starting 2017 under a cloud of uncertainty driven by the country’s slower economic growth and the increasing rhetoric by president-elect Donald Trump against US companies planning to sustain or expand their operations in that country. The US auto manufacturer Ford recently back-pedalled on plans to construct a new plant in Mexico, and GM has also drawn ire from the president-elect over its Mexican operations.
The threat of dissolving trade pacts, and Mr Trump’s general anti-immigration stance, sent the MXP plummeting after the US Presidential election, and the latest round of threats of taxation on automobiles manufactured outside the United States has put additional pressure on Mexico’s currency, which has been weaker during the last year and that has created pressure for Mexican airlines. However, for now, Mexico’s air passengers continue to grow at a steady rate. The country’s domestic airlines charted approximately 12% growth in passengers from Jan-2016 to Nov-2016, and international passengers among those airlines for the same time period strengthened by 11%.
Predicting whether those levels of growth will continue in 2017 is a challenge, given the level of uncertainty the US election has created for Mexico, along with internal strife the country is dealing with – including growing inflation and discontent over rising fuel prices.
Peru has emerged as the country of choice for the third airline of the Viva Group, which aims to launch its Viva Air Peru during the first half of 2017. In the past Viva has toyed with the idea of spreading its low cost brand to Peru, but chose to pursue an opportunity in Costa Rica that it later abandoned due to the high operating costs imposed on the country’s airlines.
Peru has numerous attractive attributes for a low cost start-up, including favourable economic growth, the absence of a true low cost airline and strong domestic passenger demand. Trips per capita for Peru are similar to the still-developing (and growing) markets of Mexico and Brazil, which each feature low cost competitors.
But the current iteration of the Viva franchise faces some changing dynamics in the Latin American market place – primarily the recognition by the region’s largest airline groups of the LCC threat, and their adoption of new tools to compete more effectively with existing and aspiring LCCs.
After losing the competition to acquire a majority stake in TAP Portugal during 2015, the South American conglomerate Synergy Group has turned its attention to Argentina and Mexico – two of Latin America’s most promising markets. Mexico’s domestic passenger growth continues at a steady rate, and a more liberalised era ushered in by Argentina’s new government is opening up the country’s domestic and international markets to new competitors.
Synergy is taking a sizeable stake in the Mexican regional airline Aeromar, a small player in the country’s aviation market compared with the fast-growing low cost airlines that have grown rapidly during the last few years. Synergy decided to outline plans for its stake in Aeromar just as the US presidential election casts a cloud over the Mexican market due to president-elect Trump’s protectionist rhetoric during his campaign.
Synergy’s moves in Argentina and Mexico are occurring as Avianca Holdings searches for a strategic investor and foreign entities line up to invest in Latin American airlines. For now, Synergy remains Avianca’s largest shareholder.
LATAM Airlines Group is taking a major step to sustain its leadership in Latin America through the introduction of a new fare structure on domestic routes in its South American domestic markets. This move is to ensure that it remains competitive as existing and potential new low cost airlines aim to establish a foothold in the region.
The company’s plans emerged just as Copa Airlines decided to transition its Colombian operations to a low cost model – Wingo – and the Viva Group set its sights on launching its third Latin American low cost airline in Peru during early 2017. Airlines within LATAM have leading positions within those countries. Over the long term LATAM expects rapid leisure passenger growth in Latin America, and is establishing a framework to compete for those customers.
Key to LATAM’s execution of its new fare structure is cost efficiency, and the airline has cited several ways to achieve lower costs – including the expansion of direct sales, improved productivity and a marked increase in aircraft utilisation – in order to attain unit costs to compete with new low cost competitors.
LCCs in Latin America: Peru’s rise as an economic star could draw attention from potential operators
As Latin America attempts to climb out of a two year long recession, Peru has emerged as a bright spot in the region – based on air passenger growth and the country’s economic performance. For the seven months ending Jul-2016 Peru recorded 9% passenger growth to 11.2 million, driven by growth of 10.2% in the country’s domestic market.
Peru’s air passenger growth continues to remain promising, as the country’s largest airline – LATAM Airlines Peru – calculates that the country’s trips per capita are slightly below the still-emerging markets of Mexico, Colombia and Brazil, whose passenger growth potential should remain robust once the country’s economy begins to fully recover.
Periodically speculation arises over the potential opportunity for a low cost airline to break into Peru’s market. The country’s growth prospects certainly warrant examination of stimulative opportunities in Peru, but so far the country lacks a true low cost airline.
International passenger numbers for the Mexican low cost airline Interjet skyrocketed more than 50% in the first seven months of 2016, reflecting the launch of more than 10 new international routes during that period, and with US transborder routes representing the bulk of Interjet’s international expansion.
Interjet is no doubt positioning itself to seize on opportunities created by a new, finalised bilateral between the US and Mexico that lifts restrictions on the number of airlines operating on specific routes between the two countries. Interjet’s rival Volaris has also grown its US transborder passengers in 2016, but it has a different route profile from that of Interjet. Generally, Interjet is subject to higher levels of competition on some of its transborder routes than Volaris, given that Interjet and Volaris offer different products to their passengers.
During the past two to three years Interjet and Volaris have been essentially tied for the coveted position of Mexico’s second largest domestic airline. But for the seven months ending Jul-2017 Volaris logged 22% domestic passenger growth, while Interjet’s passenger numbers inched down slightly, resulting in Volaris assuming full command of the second place ranking.