Las Vegas-based Allegiant Air and Mexico-based Viva Aerobus announced they have filed a joint application with the US Department of Transportation to create an international alliance.
In a press release from Allegiant, the pair shared their plans to enter into a “fully-integrated Commercial Alliance Agreement,” pending permission from the DOT and approval for antitrust immunity.
Antitrust immunity allows carriers in a joint venture to collude on routes included in the agreement, meaning they can modify prices and earn profits, according to the Department of Justice. Currently, there are 14 active antitrust alliances approved by the DOT, like United Airlines and Germany-based Lufthansa; Delta and UK-based Virgin Atlantic; and American and Australia-based Qantas.
Joining as a team, the duo will be able to coordinate their airline operations, including their data systems, loyalty programs, marketing, scheduling, and routes. The alliance will enable Allegiant, which does not currently fly to Mexico, to offer flights to Mexican leisure hotspots.
Meanwhile, Viva Aerobus will be able to add several routes to popular destinations in the US where Allegiant has a strong presence, like Las Vegas and Orlando. According to Allegiant, Viva Aerobus will have access to the Las Vegas-based airline’s distribution network and point-of-sale process.
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