Airline Joint Venture to Link Peoria with Mexico?


Peoria International Airport may land a foreign carrier in the not-too-distant future. 

It would be the result of a proposed Commercial Alliance Agreement between Allegiant Air and Viva Aerobus announced on December 1. 

Allegiant (NASDAQ: ALGT) and Viva Aerobus today announced plans for a fully-integrated Commercial Alliance Agreement, designed to dramatically expand options for nonstop leisure air travel between the United States and Mexico, while lowering fares to make travel more accessible and affordable for residents of both nations. The alliance is not only the first such venture for Las Vegas-based Allegiant and Viva Aerobus, but is also first-of-its-kind in the airline industry between two ultra low cost carriers (ULCCs).

The two carriers' regulatory filing includes maps of proposed routes. On page 68 of the Joint Application for Approval of and Antitrust Immunity for Commercial Alliance Agreement, maps for 2026 and 2031 show nonstop service from Peoria to Cancun and San Jose del Cabo, respectively. 

Allegiant Air's motivation for this deal is that compliance with regulations to start service to a foreign country can be costly, time-consuming and risky. If the deal is approved, it will give Viva Aerobus $50 million and gain a seat on that carrier's Board of Directors. These are some functions which will be coordinated between the carriers:


Revenue and Profit-Sharing
Pricing
Code-Sharing (U. S.-Mexico flights of both carriers)
Joint Marketing
Scheduling
Airport Facilities
Connecting Flights

Both Allegiant and Viva Aerobus have all-Airbus fleets, and the agreement is termed as "metal neutral." The latter could well provide actual aircraft and crews on Peoria flights, thus giving us our first foreign carrier!

 - David P. Jordan

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