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, Viva Aerobus plan groundbreaking joint venture
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.