Two Mexican Carriers Form Historic Airline Group: What This Means for Air Travel

Volaris and Viva, two of Mexico’s largest ultra-low-cost carriers, have officially announced plans to merge operations under a new holding company structure. This strategic combination marks a significant shift in Mexico’s aviation landscape, creating a unified airline group while keeping both carriers’ independent operating certificates and brand identities intact.

The Deal Structure

Under the merger agreement, Viva and Volaris shareholders will combine their holding companies in what’s being termed a “merger of equals.” Each shareholder group will own 50% of the new entity on a fully diluted basis. Upon completion, shares of the holding company will maintain listings on both the Bolsa Mexicana de Valores (BMV) and the New York Stock Exchange (NYSE).

The transaction requires regulatory approval and is expected to close in 2026. Both airlines will continue operating separately with their existing leadership structures in place initially, though a combined Board of Directors will oversee the group. Roberto Alcántara Rojas, currently chairman of Viva’s board, will chair the new airline group.

Who Owns Volaris Airlines After This Merger?

This is a key question for investors tracking Volaris Airlines ownership. Following the transaction completion, Volaris shareholders will maintain their shareholdings while receiving shares representing 50% ownership of the new holding company. Viva shareholders will similarly hold 50%, making this a true partnership rather than a traditional acquisition. The original Volaris shareholders retain their investment through the holding company structure.

Financial and Operational Benefits

The combination enables significant cost reductions through fleet optimization and improved access to capital. Both carriers currently operate with high compatibility across their fleets, reservation systems, and technical capabilities, creating substantial synergy opportunities.

By pooling resources at the holding company level, the airline group expects to lower aircraft ownership costs, a particularly important advantage given recent supply chain challenges affecting ultra-low-cost carriers disproportionately. The stronger financial profile should translate into expanded service offerings and more competitive pricing.

Passenger Impact and Route Strategy

Rather than consolidating routes, both airlines will maintain their current operations and existing route networks. Volaris and Viva together currently operate over 500 daily flights across more than 70 cities in Mexico, the U.S., Central America, and South America.

The merged group plans to expand connectivity through potential codeshare agreements between the two carriers, offering passengers new travel combinations without eliminating existing point-to-point options. Both airlines’ loyalty programs—Doters for Volaris and Altitude for Viva—will remain separate initially, with potential future collaboration being explored.

Market Implications for Mexico

The aviation sector stands to benefit from an ultra-low-cost carrier with enhanced scale and financial stability. Mexico’s air travel accessibility should expand as the group pursues fleet expansion at a faster pace than either carrier could independently.

Investments in new operating bases nationwide, including increased operations at Felipe Ángeles International Airport in Mexico City, are anticipated. Historical patterns from existing hub cities like Monterrey, Guadalajara, and Cancun suggest that each new aircraft typically generates 55-60 direct jobs plus roughly four times that number in indirect employment across hospitality and tourism sectors.

Leadership and Timeline

Enrique Beltranena, Volaris’ President and CEO, stated that the formation enables the group to “realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry.”

Juan Carlos Zuazua, CEO of Viva, emphasized that maintaining both carriers’ ultra-low-cost DNA remains central to the strategy, as passenger loyalty stems from competitive pricing and point-to-point networks.

A joint investor conference call discussing the transaction occurred on December 19, 2025. The companies engaged multiple financial and legal advisors, including Morgan Stanley for Volaris and UBS Investment Bank for Viva, to navigate the complex regulatory and structural requirements.

Regulatory and Shareholder Approval

The transaction requires approvals from Mexican regulators, including the aviation authority and securities commission, as well as from both airlines’ shareholders. The holding company structure, which preserves separate operating certificates, is designed to facilitate regulatory approval while enabling the operational synergies both carriers seek.

All statements about future benefits remain subject to execution risks and market conditions. The companies cautioned that actual results may differ materially from forward-looking projections, with risks including competitive responses, regulatory delays, and general economic factors affecting aviation demand.