The Federal Economic Competition Commission (Cofece) authorized the commercial alliance between the US airline Allegiant and Viva Aerobus, which was announced in December 2021, and which includes a capital investment of 150 million dollars by Allegiant.
"Cofece's authorization is one more step we are taking to forge an alliance that will strengthen a competitive environment with a much broader offer between Mexico and the United States," said Juan Carlos Zuazua, general director of Viva Aerobus, quoted in a statement.
The agreement will allow the airlines -both from the low-cost segment- to have cross-access to their respective loyalty programs, shared codes, sales systems and route networks in order to operate flights together.
However, the trade agreement is still pending approval by the US Department of Transportation.
Under the alliance, Allegiant, which does not currently operate in Mexico, will be able to enter the country, while Viva Aerobus will be able to increase its presence in multiple US markets.
"This approval is a decisive step in achieving a historic and unique alliance between two low-cost airlines in the most dynamic air market in the world," said John Redmond, CEO of Allegiant, quoted in the document.
According to a presentation sent to the Department of Transport, the alliance had identified a potential of 250 potential routes that would be announced after the approval of the agreement, and that they would begin to be commercialized in the first quarter of 2023.