Mexico’s President want to see more competition in the domestic air travel market. López Obrador proposes to allow foreign airlines to operate within the country – service known as cabotage – competing against the local incumbents. But will any show up??
Allegiant sees significant potential carrying leisure travelers to Mexican resort destinations, but the cost – both real and relative to domestic expansion – is too high. Viva Aerobus wants to expand deeper into the US leisure segment, but its prior attempts mostly failed. Together, however, the two believe they can become a strong player in the transborder market, commanding a double digit share.