Dec. 19 (UPI) -- Mexican low-cost airlines Volaris and Viva Aerobus announced an agreement to create a new holding company through a merger of equals -- a deal aimed at expanding low-fare air travel and strengthening Mexico's air connectivity with the United States and Latin America.
The transaction will combine the parent companies of Volaris and Viva into a single entity, while each airline will continue to operate independently under its own brand, air operator certificate, leadership structure and route network.
Once the deal closes, shareholders of each company will hold 50% of the new group on a fully diluted basis. Viva shareholders will receive newly issued shares of Volaris' holding company, while Volaris shareholders will retain their existing shares, according to DF SUD.
The boards of both airlines unanimously approved the transaction. The deal is subject to regulatory and shareholder approvals and is expected to close in 2026. Shares of the holding company will continue to trade on the Mexican Stock Exchange and the New York Stock Exchange.
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