Allegiant and Viva Aerobus to DOT: "Our Alliance is the Antithesis of the Delta-Aeromexico One"
In response to the DOT's order against Delta-Aeromexico, Allegiant and Viva Aerobus file a document to draw distinctions and push for the approval of their own alliance.
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Amid the U.S. Department of Transportation's (DOT) proceedings against the Delta and Aeromexico alliance, a new front has opened. Allegiant Air and Viva Aerobus have submitted a joint comment to the regulator, using the scrutiny on their rivals to advance their own Joint Cooperation Agreement (JCA), which has been pending for nearly four years.
In the document, dated August 11, 2025, the ultra-low-cost carriers support the DOT's analytical framework but draw a clear line: the problems the authority identifies in the Delta and Aeromexico pact are precisely the virtues their proposal offers. They argue that while the existing alliance is criticized for not generating sufficient public benefits, "the benefits of capacity expansion and new route launches that will lower fares... are the central feature of the Allegiant/Viva alliance".
The companies describe the current situation as "patently unfair" and "anticompetitive," as their application for antitrust immunity (ATI) remains suspended while the now-questioned Delta-Aeromexico alliance continues to operate. They contend this delay directly harms consumers, at a cost they estimate to be over $150 million in annual "monopoly rents" paid to legacy carriers. They even present a "Monopoly Tax Clock" that calculates the extra cost to consumers at $870,105,000 since December 2021 due to the delayed competition.
Two Alliances, Two Models
Delta-Aeromexico: Focused on network connectivity, with Mexico City International Airport (MEX) as its main hub. The DOT fears its market power at this airport is excessive.
Allegiant-Viva Aerobus: Focused on the point-to-point leisure market, primarily to Mexican beach destinations from small and medium-sized U.S. cities. Only 6% of their contemplated routes would touch Mexico City.
The main defense from Allegiant and Viva is their geographic focus. They assert that their alliance "does not center on or create a competitive issue at MEX". On the contrary, it seeks to address the "fundamental lack of meaningful competition in leisure markets" , which are dominated by legacy carriers charging higher fares.
Allegiant and Viva plan to introduce over 90 new nonstop routes, focusing on small to medium-sized cities in the United States that currently have few or no direct flight options to Mexico. According to their projections, this would increase passenger traffic by 6.1 million and reduce average fares by 45%.
Therefore, the airlines urge the DOT to conduct an individualized assessment of their case, arguing that a fact-based analysis would demonstrate that their JCA meets the statutory requirements for approval. As an alternative, they suggest that the DOT approve the alliance while carving out Mexico City. This measure would not remove the "heart of the network" for them, unlike what would happen with Delta and Aeromexico.
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