Allegiant seeks alliance with Mexican airline

PUNTA GORDA — Allegiant Airlines announced Wednesday it is seeking approval to form an international alliance with the low-budget Mexican airline Viva Aerobus.

Allegiant and Viva jointly submitted an application to the U.S. Department of Transportation for what Allegiant called a “fully integrated Commercial Alliance Agreement.”

Allegiant is also seeking anti-trust immunity, or the right to jointly set prices for fares with another airline.

Viva is applying to Mexican regulators. Both airlines anticipate they would be able to offer flights under the new joint agreement in early 2023.

It would be a first entry into international travel for Allegiant and a first international alliance between so-called ultra-low-cost carriers.

Both airlines offer no-frills flights and both promote point-to-point travel over the major airline model of connecting flights.

Punta Gorda is one of Allegiant’s prime locations where it is building the first airline-operated resort — Sunseeker.

But Punta Gorda Airport does not appear to be a likely destination for the new alliance, however, according to PGD media relations.

“This announcement does not affect us,” PGD Communications Manager Kaley Miller said. “The Charlotte County Airport Authority has no plans at this time to make PGD an international airport. PGD does not have customs. We do not have the capability for international flights, unless it’s one of 16 airports with preclearance.”

U.S. Customs and Border Protection reports 16 preclearance airports in other countries, and none are in Mexico. These are airports in countries with Customs agents pre-clearing passengers before they leave. 

Popular vacation destinations in Mexico available through Viva include Cancun, Los Cabos and Puerto Vallarta, the announcement states. Viva flies to many other locations in Mexico and South America.

“This groundbreaking alliance should reduce fares, stimulate traffic and ultimately link many transborder cities with nonstop service,” said Allegiant Chairman Maurice Gallagher, who would join the Viva board if the alliance is approved. “In short, it will bring meaningful ULCC competition to the U.S.-Mexico market for the first time in history.”

Viva already offers flights to the United States, including Chicago, Houston and Los Angeles, but it does not appear to have flights to Florida.

It’s too soon to say what new cities would be added to the roster, said Allegiant’s media relations, but Viva has indicated Mexicans are interested in American beach locations as well as popular tourist locations — hint, Orlando.

The alliance is intended to allow both airlines to expand more quickly than they would be able to on their own.

The U.S.-Mexico air market is the largest international travel market in the world, said Viva Chief Executive Officer Juan Carlos Zuazua, and includes substantial demand from Mexicans seeking to visit friends and relatives in the United States.

All Mexican airlines are currently frozen in their U.S. destination status due to the U.S. Federal Aviation Administration’s May decision to downgrade the status of the country’s airline safety oversight from level 1 to level 2.

Mexico joins a handful of other countries such as Pakistan and Venezuela in this status, according to Simpleflying.com. It reflects not the airlines’ safety operations but the country’s governmental oversight abilities.

As a result of this status, Mexican airlines cannot expand their operations in the United States.

Mexico had hoped to return to level 1 status in a few months, but now, are anticipating the upgrade by 2022. Allegiant media relations reported they expect the status upgrade to be complete by the time the airlines are ready to operate the alliance.

The proposed alliance includes many features of joint operation, such as being able to make a reservation on either airline on either website. A passenger would be able to see which airline was operating the plane when making the reservation.