Volaris and Viva Set to Become a New Conglomerate: Más Vuelos

The formation of what will be Mexico’s largest aviation conglomerate is a done deal, according to national media outlets. 

The National Antitrust Commission is expected to approve the unification of Volaris and Viva (formerly Viva Aerobus) before the end of the current year. 

Mexico’s aviation regulatory body will have allowed the consolidation to proceed with minimal operational restrictions, provided specific consumer protections are met. 

The transaction, first announced late last year, is structured as a merger of equals. Executives from both companies have repeatedly emphasized that their respective brand identities will remain intact after the corporate tie-up, ensuring consumers still recognize the individual service models they have known for years.

Market Concentration and Route Overlap

Creating Grupo Más Vuelos will consolidate immense market power in the domestic aviation landscape. Together, Volaris and Viva Aerobus account for about 75% of all domestic flights in Mexico, while holding a smaller but significant share of international routes in North, Central and South America.

Data analysis reveals that the two low-cost carriers currently operate 55 identical routes. Market concentration will be particularly pronounced at major hubs in Guadalajara and Monterrey. 

Regulatory Safeguards and Consumer Protections

To counterbalance the heavy market concentration, the antitrust authority intends to impose strict requirements on Grupo Más Vuelos. The primary conditions require the new corporate entity to keep ticket prices low and avoid widespread layoffs. 

Furthermore, the conglomerate will be required to maintain its existing route network because rival companies offer few viable alternatives. To comply with the low-cost mandate, a specific percentage of fares must remain aligned with regional budget operators. 

But commentators and critics on social media have expressed concern that once consolidation takes place, flights will become more expensive, bringing the era of low-cost flights in Mexico to an end. 

Government Interests and Regional Airports

Political factors and governmental priorities have also influenced the trajectory of the approval process. Sources close to the proceedings point to subtle pressure from the federal administration to advance the transaction, largely because both airlines serve as redirection points and primary operators at the state-run Felipe Angeles International Airport on the periphery of Mexico City. 

That facility has struggled to attract passenger traffic volumes comparable to more established central hubs. As part of the regulatory understanding, the airlines have committed to increasing operations at Felipe Angeles and the state-run airport in Tulum, both of which Volaris and Viva recently pulled out of.  

Meanwhile, rival carrier Aeromexico has voiced strong opposition to the merger, questioning whether regulatory oversight will be enough to curb Grupo Más Vuelos’ immense market influence. International regulatory bodies in the United States and Colombia have already cleared the transaction, leaving domestic approval as the final major hurdle for the companies.