Mexico's antitrust watchdog expected to clear Volaris-Viva Aerobus merger this year

Mexico's antitrust regulator is expected to authorize the merger of low-cost carriers Volaris and Viva Aerobus before the end of the current year, according to six sources cited in a report. The deal would create a new corporate entity named Grupo Mas Vuelos, which would become the largest airline group in the Mexican market. The sources said approval would come with few operational restrictions.

Conditions under consideration focus on consumer protection and job stability. One would require the group to preserve its low-cost model by keeping a set share of fares within the ranges charged by comparable regional operators. Another would commit the company to avoiding widespread layoffs. A third would require the group to maintain most of the two carriers' existing routes, given the lack of viable alternatives from competitors.

Viva said in a written response that it is monitoring the process and will keep working with regulators. Volaris confirmed its willingness to proceed and repeated its confidence in the strategic merits of the agreement.

The transaction, announced late last year, is structured as a merger of equals. Both companies have agreed to keep their commercial brand identities separate after the deal closes. Leadership of the new group will combine directors from both carriers, according to the report.