Airlines Viva Aerobus and Allegiant announce commercial alliance

A Viva Aerobus airplane lands as part of the inauguration of the first stage of the new international airport in Zumpango de Ocampo, at the Santa Lucia military airbase on the outskirts of Mexico City, Mexico February 10, 2021. REUTERS/Edgard Garrido

Dec 1 (Reuters) - Mexico's Viva Aerobus and U.S. peer Allegiant Air on Wednesday announced a commercial alliance to offer flights between the United States and Mexico in what the airlines said was the first tie-up of its kind between low cost carriers.

Allegiant will also make a $50 million equity investment in Viva Aerobus, pending regulatory approval.

The deal aims to offer cheap flights and "link many new transborder cities," on routes that had previously required connections, Viva Aerobus said in a statement.

"Allegiant and Viva Aerobus operating together will be a tremendous win for consumers seeking affordable, nonstop travel between the U.S. and Mexico, and will create rippling economic benefits for hospitality sector business," said Allegiant Chairman and Chief Executive Officer Maurice Gallagher.

The alliance will allow Viva Aerobus to offer new flights to Mexico from U.S. destinations popular with Mexican tourists like Florida and Las Vegas, the statement said.

Allegiant and Viva Aerobus currently expect to offer flights under the deal beginning in the first quarter of 2023, it added.

The tie-up is pending authorization from the U.S. Department of Transportation and the Mexican Federal Economic Competition Commission, the anti-trust regulators of both countries.

Reporting by Bengaluru Newsroom and Raul Cortes Writing by Jake Kincaid; Editing by Kirsten Donovan

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