Mexico’s VivaAerobus obtains $150mn loan from US investor

VivaAerobus (VB, Monterrey General Mariano Escobedo) has announced that “as part of its growth and expansion plans” it has signed a deal to obtain a five-year loan of USD150 million from Minneapolis-based alternative investment management firm CarVal Investors. The self-proclaimed ultra-low-cost airline said in a statement on April 28 that the funding will help it to “increase its market presence and strengthen its business model.” With the financing, “we underpin our strategy to grow our fleet, routes, and operations for the coming years,” said the airline’s chief executive, Juan Carlos Zuazua, adding that it “reflects confidence in VivaAerobus’ ultra-low-cost business model and in the viability of our expansion plans.” The announcement came on the same day that VivaAerobus presented its finances for the first quarter of 2021, showing a net loss of MXN501 million pesos (USD25 million) during the period, 47% bigger than its loss for the same quarter in 2020. The previous day, April 27, VivaAerobus revealed that it would launch a new route linking the Mexican and Colombian capitals. Flights between México City Int’l and Bogotá will begin on August 21 with 2x weekly frequencies, increasing to daily from September 15. According to the ch-aviation fleets advanced module, VivaAerobus operates an all-leased fleet of nineteen A320-200s, twenty A320-200Ns, and four A321-200NXs. It has a further forty-one A321-200NXs on firm order from Airbus. As previously reported, it recently took delivery of its first A321-200 ahead of its planned entry into service on May 1. The airline currently operates 117 routes, 98 of which are domestic within Mexico, the ch-aviation capacities module shows.