The world’s first ultra-low-cost international airline alliance is on the horizon as 2 budget carriers team up to bring cheap fares between Mexico and the US

  • Date: 04-Dec-2021
  • Source: Business Insider
  • Sector:Economy
  • Country:Gulf
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The world’s first ultra-low-cost international airline alliance is on the horizon as 2 budget carriers team up to bring cheap fares between Mexico and the US

On Thursday, Las Vegas-based Allegiant Air and Mexico-based Viva Aerobus announced they have filed a to create an international alliance. , 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, . Currently, there are 14 active antitrust alliances , 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. Allegiant said in a press release that the pair intends the alliance to start in the first quarter of