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VivaAerobus

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VivaAerobus

Carrier Status
In-service
IATA Code
VB
ICAO Code
VIV
Corporate Address
Aeropuerto de Monterrey, Terminal C, Zona de carga
Carretera Miguel Alemán Km. 24
Apodaca, Nuevo León, México
C.P. 66600
Website
http://www.vivaaerobus.com
Main hub
Monterrey Escobedo International Airport
Country
Mexico
Business model
Low Cost Carrier
Network
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, the investment vehicle of the Ryan family- founders of Ryanair. Irelandia has also been involved in starting sister carrier, VivaColombia, with both carriers forming part of multinational airline group; Grupo Viva. The airline currently utilises a mix of both Boeing 737 and Airbus A320 aircraft and is undergoing transition to an all-A320 fleet, expected to be complete by 2016.

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.


 
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326 total articles

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59 total articles

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VivaAerobus starts 2016 with positive momentum. Profitable growth is the key to its future

13-Apr-2016 1:00 AM

Mexican low cost airline VivaAerobus ended 2015 on a positive note, reversing its losses from the year prior and charting solid EBIDTAR margins. The airline is in the final stretch of a fleet revamp; this entails shedding Boeing 737 Classics operated since its 2006 launch and transitioning to a much younger fleet of Airbus narrowbodies.

Among the new crop of Mexican low cost airlines that formed in the mid-2000s (VivaAerobus, Interjet and Volaris), VivaAerobus remains the smallest measured by market share. Aeromexico, Interjet, Volaris and VivaAerobus are Mexico’s dominant airlines, but VivaAerobus’ 12% in 2015 share was a distant fourth. That could change as VivaAerobus expands its fleet with larger-gauge aircraft, taking steps to broaden the expanse of its network.

VivaAerobus suspended a number of short-lived transborder routes in 2015, and it appears to be focused on rounding out its domestic network in 2016, before resuming international expansion in 2017. During the next few years VivaAerobus could elevate its position in the Mexican market if there is enough demand to sustain the growth plans of the country’s largest airlines.

Viva and Volaris try to shake up the LCC market in Latin America while Sky switches its model

24-Mar-2016 5:54 PM

The dynamics of potential LCC upstarts in Latin America have shifted rapidly during the last few months. The Viva Group, whose airlines include Mexico’s VivaAerobus and VivaColombia, appears to have shelved plans to launch a third airline in Costa Rica. However, Mexican low cost airline Volaris has swept in, reportedly declaring its intent to establish a new subsidiary in the country.

At the same time Chile’s second largest airline, Sky, is working on its transition to a low cost business model, perhaps in part to prevent another airline from attempting to inject low cost competition into the market. Chile’s largest airline is LAN, which is part of the powerful LATAM Airlines Group.

In some ways, the spread of the low cost model in Latin America (excluding Mexico) has moved slowly for a market that has numerous opportunities for traffic stimulation. Perhaps the barriers to establishing a new airline remain high even if all the elements are in place for effective market stimulation.

Viva Group spreads its ambition to Costa Rica and Central America’s barren LCC landscape

16-Nov-2015 8:35 PM

Roughly three years after the debut of the second airline member of the Viva Group, VivaColombia, Costa Rica has emerged as the base for the third airline VivaCam. The new airline is initially focusing on low cost service to Central America, which has little LCC penetration. Economies in that region are also stronger than most countries in South America, which means that residents in the region are more readily incentivised and able to travel.

The establishment of VivaCam is another step towards the Viva Group establishing itself as a pan-Latin American LCC entity after injecting LCC competition into Mexico and Colombia with the establishment of VivaAerobus and VivaColombia. However, the current Viva airlines have no coordination, and it is uncertain whether VivaCam will initially seek to cooperate with its sister airlines.

However, VivaCam will source aircraft from other Viva airlines. VivaAerobus placed a hefty Airbus narrowbody order in 2013, which will no doubt serve as resource for growth among all the Viva airlines, whatever growth trajectory each airline adopts. 

Aeromexico and Volaris cite positive signs in Mexico despite growing currency pressures

5-Nov-2015 9:56 PM

Conditions in Mexico’s aviation market continue to improve as domestic passenger growth remains steady. The stabilising conditions are helping Mexico’s two publicly traded airlines Aeromexico and Volaris regain some lost ground with unit revenues and yields.

One major challenge that remains for those airlines is the rate of depreciation of the MXP against the USD, which was 26% at the end of 3Q2015. Aeromexico and Volaris seem to be weathering the effects of the depreciation as their profits and revenues grew steadily in the quarter.

Both Aeromexico and Volaris feel confident that the improvements in the Mexican market will continue as their respective outlooks for 4Q2015 remain stable. Volaris has expanded its domestic supply growth targets for 2015 as some markets show strong demand from passengers switching from bus travel.

VivaAerobus pulls back on US routes as the Viva Group takes aim at Costa Rica

16-Oct-2015 11:19 PM

A promising transborder push by VivaAerobus has become short lived, leaving the Mexican low cost carrier with only one US route. With the recent suspension of Cancun-Houston, six US routes that VivaAerobus launched over the last year have now been axed.

On most of the routes VivaAerobus faced formidable competition from both large US global network airlines and Mexican rivals Aeromexico, Interjet and Volaris. VivaAerobus’ international passenger numbers have grown at a steady clip in 2015, but its larger rivals Aeromexico and Volaris have also directed most capacity growth this year to international operations, particularly to the US.

VivaAerobus’ decision to end transborder routes occurs as the Viva Group is reportedly aiming to launch a third affiliate in Costa Rica by the end of 2015. Presently there is no coordination between VivaAerobus and the second airline created by the group VivaColombia, so it remains to be seen if the new airline will have any effect on VivaAerobus’ network strategy.

Mexico’s domestic market remains stable as the four largest airlines sustain their market share

14-Aug-2015 3:24 PM

Mexico’s domestic aviation market appears to be undergoing a slow and steady recovery, reflected in healthy passenger growth of roughly 12% for 1H2015. Economic indicators are generally trending in the right direction, although conditions still remain choppy.

Low-cost airline Volaris has a reasonably positive view of the domestic market, and is opting to increase its capacity on some routes in 2H2015. Its yields are continuing on a positive trajectory as Mexico’s largest airline Aeromexico posted a decline in yield and unit revenues for 1H2015. But Aeromexico has inherent strategic benefits, including a leading position at Mexico City Juarez International Airport, and a deep partnership with Delta Air Lines for added connectivity within the domestic market, and on US transborder routes.

Domestic market share allocation among Mexico’s largest airlines remained fairly stable year-on-year for 1H2015, with no major jumps by a single airline. Much untapped demand remains in the market place, but it remains to be seen if four major airlines are required to absorb that demand.

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This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.