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GRAND CAYMAN—For three years, Allegiant Air and VivaAerobus have been seeking antitrust immunity (ATI) to operate a transborder alliance between the U.S. and Mexico.
Their joint ATI application was first submitted to the U.S. Transportation Department (DOT) in December 2021. However, the U.S. agency suspended its review in summer 2023 during an intergovernmental dispute with Mexico. Now, with a new administration in place, the Las Vegas-based ULCC is hopeful that long-awaited progress could be achieved, in what it believes is the longest pending ATI.
“We’re optimistic,” Allegiant VP-corporate development & government affairs John Pepper said at the CAPA Airlines Leader Summit in Grand Cayman. “This would be the first joint venture between non-network airlines, and we think it would be revolutionary in a highly concentrated international market, where outside Latin America, really three carriers in the form of their immunized appliances dominate. We’re optimistic that this administration understands and is going to be able to work past some of the issues that have prevented it from being finalized.”
When it first announced the proposed partnership, Allegiant planned to make an equity investment of $50 million in Viva as part of the alliance agreement. It was positioned as a fully integrated and immunized alliance for coordination across all areas of airline operations, including codesharing, scheduling, marketing, information systems and loyalty programs. As part of the DOT application, more than 250 new potential route opportunities were identified.
Allegiant has previously extolled a partnership with Viva as being “very pro-competition.”
“We think it’s a healthy way for us to expand internationally with a like-minded partner like Viva,” Allegiant President Greg Anderson said at Aviation Week Network’s Routes Americas in March 2024. “We think that’s going to be a big win for all stakeholders.” Anderson was promoted to Allegiant CEO in September 2024.
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