Mexican Low-Cost Viva Aerobus Orders 90 Airbus A321neo jets

Mexican low-cost airline, Viva Aerobus, has entered into a memorandum of understanding (MOU) to acquire 90 Airbus A321neo aircraft, in a deal expected to be worth several billion dollars. The announcement comes after talks between the two companies during the Paris Airshow, confirming earlier reports by Reuters.

While the specific financial details were not disclosed, the agreement boosts Viva Aerobus’ order book to a total of 170 Airbus planes, all belonging to the A320 family. The A321neo, with its capacity of 240 seats, is favored by airlines for its size and fuel efficiency.

Viva Aerobus CEO, Juan Carlos Zuazua, emphasized the importance of analyzing various financing options to ensure the lowest cost of ownership. The planes will be powered by Raytheon’s Pratt & Whitney GTF engines, known for their fuel efficiency, helping to reduce consumption by approximately 20% compared to previous-generation aircraft.

The delivery of the Airbus A321neo planes is scheduled to begin in 2027, facilitating both domestic and international growth plans for Viva Aerobus. The carrier anticipates an improvement in Mexico’s air safety rating, which would restore the ability of Mexican airlines to add new flights to the United States and pursue marketing collaborations.

As of July 2023, Viva Aerobus has a fleet of 74 aircraft, all Airbus A320 family jets:

• 22 Airbus A320ceos
• 22 A320neos
• 9 A321ceos
• 21 A321neos
• 25 orders

Viva Aerobus has ambitious expansion plans, including the exploration of new routes to U.S. cities, domestic destinations, South America, and potential commercial operations in Canada by 2024. Additionally, a joint venture with U.S. airline Allegiant, subject to approval by the U.S. Department of Transportation, aims to create over 250 new U.S.-Mexico route opportunities.

Once the DOT approval is granted, Viva Aerobus and Allegiant will collaborate on network planning and pricing strategies to maximize the potential of this partnership. The equity investment of $50 million from Allegiant will further support Viva Aerobus in its growth endeavors.

Sources: AirGuide Business airguide.info, reuters.com, airbus.com, planespotters.net