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VVS-2013-10 A320ceo AND A320neo ORDER
Formed and started operations in 2006. A K A Aeroenlaces Nacionales SA de CV. A joint venture of (IAMSA) a huge Mexican bus transport company, with RyanMex (a combination of RyanAir (RYR) founder, Dr Tony Ryan and Kite Investments. Regional & domestic, scheduled & charter, passenger & cargo, jet airplane services.
Aeropuerto de Monterrey
Terminal C, Zona de Carga
Carretera Miguel Aleman Km 24
Apodaca, CP 66600, Nuevo Leon, Mexico
Mexico was established in 1821, covers an area of 1,958,201 sq kms, its population is 101 million, its capital is Mexico City, and its official language is Spanish.
February 2006: Ryanair (RYR) founder, Dr Tony Ryan has jumped into the suddenly crowded Mexican low-fare market. The Ryan family, along with Irish equity firm, Kite Investments, formed RyanMex, a company that will hold a 49% stake in a new Low Cost Carrier (LCC), dubbed "AeroBus" (VVS), which was unveiled at a Mexico City press conference and expects to launch in September with 2 737-300s, employing up to 500, and carrying 1.5 million passengers in its 1st year of operation, and increasing its fleet to 10 airplanes by the following year, according to Irish press reports. Mexican bus transportation company, Inversionistas en Autotransportes Mexicanos SA de CV (IAMSA) will hold the remaining 51%.
(IAMSA), incorporated by Grupo Toluca and Grupo Flecha Amarilla, is the biggest passenger-bus transportation operator in Mexico, with a 25% market share. (ETN), Omnibus de Mexico, TAP, Plus, are some of its well known brands. It operates in 20 states in the Mexican Republic, and is particularly focused on the north/central zone, where 73% of the population live. It transports 260 million passengers a year, using its 8,500 strong bus fleet, operates 389 bus stations, and employs >24,000 personnel.
RyanMex is part of the investment fund of the Irish Ryan family, whose President is Dr Tony Ryan, founder of (RYR) 21 years ago. Dr Ryan was also founder of GPA (Guinness Peat Aviation) (GUI) and is also a significant investor in Tiger Airways (TGR) from Singapore, and Allegiant Air (WJE) in the USA. Launching the base at Monterrey Airport, Roberto Alcantara, Chairman of the Board of vivaAeroBus (VVS) said "we are delighted to launch our airline in Monterrey's airport, efficiently operated by Grupo Aeroportuario del Centro Norte, the Mexican airports operator known as (OMA), and give users international security standards, comfort and quality with significantly lower tariffs than the ones available.
PlaneConsult, run by former (RYR) Operations Director Conor McCarthy, reportedly will assist with the launch. McCarthy advised AirAsia (ASW) (CEO) Tony Fernandes on the launch of that carrier.
Assuming AeroBus (VVS) and other (LCC)s are launched, Mexico will have at least 4 low-fare airlines vying for a piece of the market. Volaris (VLS) plans to launch this month with 4 leased A319s and recently ordered 16 firm A319s and optioned +40 more. Gol (GOT) is involved in an airline set to start up in mid-year, while Mexicana (CMA) is transforming its Aerocaribe (AEB) regional subsidiary into Click (AEB), which also proclaims itself as an (LCC).
May 2006: "vivaAeroBus" (VVS) is expected to be the name chosen for the new low cost Mexican airline that is being set up jointly by the Ryan family (49%) and (IAMSA) (51%) one of Mexico's largest bus companies with an initial investment of $50 million. (VVS) plans to operate services between Mexico and the USA, targeting cities such as San Diego, Los Angeles, Las Vegas, Houston, & Chicago - all of which have large hispanic populations. The original Mexican HQ was in Toluca, near Mexico City, but the central Mexico cities of Queretaro, Puebla, and Cuernavaca, as well as Monterrey in the north, and Guadalajara in the west, are also possibilities. Expects to launch with 2 leased 737-300's, growing to 10 airplanes within 2 years of start-up. Plans 1.5 million passengers in its 1st year.
July 2006: vivaAeroBus (VVS) said its 1st base will be Monterrey. (VVS) will start operations in September with 2 737-300s.
September 2006: (http://www.vivaaerobus.com).
Plans include delivering 1 million passengers over the next year to the region, sustaining 1,150 jobs in the State of Nuevo Leon and allowing the people of Nuevo Leon to enjoy low fares flights for a fraction of the existing fares." "The economic benefit to the State of Nuevo Leon, will be a boost to the economy of MX $3.6 billion in the next 12 months." We have had all the support from the Government of Nuevo Leon through its Governor, Lic Natividad Gonzalez Paras and the Secretary of Economic Development, Dr Gustavo Alarcón, and they maintain their commitment to keep Nuevo Leon as an Avant-garde State and keep bringing projects that bring benefit to the region and to the country.
Ruben Lopez (CEO) of Monterrey Airport said in welcoming (VVS) to Monterrey Airport, he "acknowledged the shareholders long experience in the transportation sector, which will bring important benefits to the market, providing new available destinations for the benefit of its users. (VVS) will serve up to 15 destinations from Monterrey offering the lowest available rates.
(VVS) hopes to be in a position to announce their 1st routes within the next 8 weeks, when their discussions with the state governments are completed.
(VVS) will start flight operations with 2 737-300 airplanes and build up to 5 airplanes in the 1st year of operations, moving quickly to 10 airplanes by the end of the 2nd year. Not only will (VVS) commence operations from Monterrey, but it will also establish its Headquarters at the airport, along with its operational control center and maintenance facilities.
737-3B7 (22598, XA-), ex-(N385US), ex-US Airways (USA), bought from Jet Partners - see photo.
October 2006: vivaAerobus (VVS), Mexico’s Low Fares Airline, announced the appointment of Mike Szucs, ex-(COO) of easyJet (EZY) as its Chief Executive (CEO).
(VVS) stated that seats will be sold in mid-October for flights commencing 1st December 2006. (VVS) is based in Monterrey and has fleet commitments for 8 737 airplanes within the next 12 months.
November 2006: vivAerobus (VVS)'s initial routes are from Monterrey to: Acapulco; Cancún; Chihuahua; Ciudad Juárez; Culiacán; León/El Bajío; Tampico; Tijuana; & Veracruz. From January 1st, (VVS) will add routes to: Cuernavaca; Hermosillo; Puerto Vallarta; Querétaro; & San Luís Potosí. From March 1st, to add routes to: Durango; Mazatlán; Mexicali; Torreón; Villahermosa; & Zacatecas. From April 1st, to add routes to: Aguascalientes; Ixtapa/Zihuatanejo; Mérida; & Morelia.
Telephone Call Center: +52 82-150-150.
Grupo Aeroportuario del Centro Norte, the Mexican airports operator known as (OMA), raised $375.8 million this month in an Initial Public Offering (IPO) in which Mexico's government divested its remaining 48% stake in the company, completing the privatization that began in 2000. The funds raised were higher than expected, as the government sold its shares for $18 each. Shares will be listed on Nasdaq under (OMAB). (OMA) operates to airports in Monterrey, Acapulco, Mazatlan and Zihuatanejo, plus 9 other regional facilities.
December 2006: Mexico's airline industry is facing a significant overcapacity situation following the emergence of several new entrants, Aeromexico (AMX) (CEO) Andres Conesa said at the (ALTA) Latin American Airline Leaders Forum. According to Conesa, Mexico currently has an average of 8 airlines competing on city-pairs of >1 million annual passengers compared to 4 in the USA. Furthermore, the top 10 busiest domestic routes have 1.8x- the number of seats required to meet demand versus 1.2x- in the USA.
(AMX) and its regional affiliate, Aerolitoral are part of Consorcio Aeromexico, the renamed Cintra, following Cintra's sale of Mexicana (CMA) last year to Grupo Posadas. Mexican new entrants, all Low Cost Carrier (LCC)s, include Volaris (VLS) and InterJet (AAE) based at Toluca Airport outside Mexico City, Alma in Guadalajara, Avolar (AVL) in Tijuana and Viva Aerobus (VVS) in Monterrey. Additionally, Mexicana (CMA) subsidiary Click (AEB), the former Aerocaribe, operates as an (LCC). Conesa said he expects a shakeout, with only a few new entrants surviving. "It's hard to think they can all remain."
April 2007: Amadeus said Mexico's VivaAerobus (VVS) and Colombia's AerOasis signed to adopt its customer management Information Technology (IT) solution for low-cost carriers.
May 2007: 737-3B7 (23856, XA-VIA), leased.
July 2007: 737-3B7 (22959, XA-VIY), re-registered.
August 2007: vivaAerobus (VVS) plans to launch its 1st international service before the end of the year. (VVS) has applied to the USA Department of Transportation (DOT) to begin service in November to Austin, Texas from 6 cities in Mexico: Cancun, Guadalajara, Leon, Monterrey, Puebla, and Queretaro.
(VVS) currently has a fleet of 5 737-300s. Plans to expand to 10 airplanes by the end of this year, and add +20 by 2009.
March 2008: Austin-Bergstrom airport in Texas expects a May 1st debut of service by VivaAeroBus (VVS) to Cancun and Monterrey from a new, dedicated low-cost terminal that has raised protests from Southwest Airlines (SWA) and other carriers.
737-301 (23259, XA-TAR), delivery, ex-(HS-AEF).
April 2008: 737-3B7 (23312, XA-VIX) and 737-322 (24249, PR-GLE), deliveries.
May 2008: 737-3B7 (23378, XA-VIB), ex-(HS-AAU), and 2 737-322s (23955, XA-VID; 23966, XA-VIE), delivery, AirCastle leased, ex-(PR-GLI/PR-GLJ).
September 2008: VivaAeroBus (VVS) is a Low Cost Carrier (LCC), operating regional and domestic, jet airplane services from Monterrey to 18 destinations. A link is also provided from Monterrey and Cancun to Austin, Texas.
(IATA) Code: VB. (ICAO) Code: AEN - (Callsign - AEROENLACES).
Parent organization/shareholders: (IAMSA) (51%); & RyanMex (Tony Ryan & Maurice Mason) (49%). Maurice Mason is the Kite Investments founder. (IAMSA) is a Mexican bus transport company.
Main Base: Monterrey General Mariano Escobedo International Airport (MTY).
November 2008: In September, VivaAerobus (VVS) carried 72,294 passengers (-16%), the 9th highest of all Mexican carriers.
May 2009: VivaAerobus (VVS) will cease service June 1 at Austin-Bergstrom, where it operated flights to Cancun and Puerto Vallarta. Due to "the unfortunate outbreak of the swine flu virus," cancellations have risen to "unprecedented" levels, (VVS) said.
October 2009: Air Asia (ASW) is considering selling 2 737s to Mexican carrier VivaAerobus (VVS).
November 2009: VivaAerobus (VVS) applied to serve Las Vegas from Hermosillo with 737-300s starting in March. It currently flies to Las Vegas from Monterrey and briefly flew to Austin before exiting earlier this year.
December 2009: 2 737-301s (23552, XA-VIF; 23554, XA-VIH), bought from Air Asia (ASW).
January 2010: 737-3YOs (24677, XA-VIJ; 26442, XA-VIK), bought from AirAsia (ASW), ex-(PM-AEC; & 9M-AED).
December 2010: Mexico's aviation safety rating was raised to Category 1 by the USA (FAA) just four months after the agency downgraded the country to Category 2 for being "unable to fully comply with all of the international safety standards" set by (ICAO).
The (FAA) said a November review of Mexico's civil aviation authority led it to conclude that the nation now complies with (ICAO) standards. "Mexico has made significant progress," the agency stated, adding that the (FAA) "will continue to provide technical assistance to support and maintain the changes the civil aviation authority has made."
The (FAA) never explicitly explained where Mexico had fallen short, saying broadly that a Category 2 rating means a country "is deficient in one or more areas, such as technical expertise, trained personnel, record keeping or inspection procedures."
The change is meaningful for Mexican airlines, which were barred from adding service to the USA or code sharing with USA carriers while the country was rated Category 2.
February 2011: 737-33A (25032, XA-VIM), (AWAS) (AWW) leased, ex-(TS-IED) and 737-36N (28563, EI-ERD), Aircraft Finance Trust leased, ex-(HZ-BMA).
August 2011: VivaAerobus (VVS) will launch 2x-weekly, Monterrey - Chicago O'Hare service on October 14. (VVS) will also launch Monterrey service to Orlando (November 9, weekly) and Miami (November 11, 2x-weekly).
September 2011: Flight Focus, based in Singapore, will install its Class 3 electronic flight bag (EFB), the Flight Focus PLATFORM, onto the fleet of VivaAerobus (VVS). Flight Focus said the (EFB) will integrate with (VVS)’s Flight Operations, Engineering, Maintenance and Finance Departments’ business processes, and allow ‘always on’ connectivity between their airplanes and ground stations through Iridium Satellite Communications. VivaAerobus (VVS) will also use the Flight Focus Fuel Management Application.
October 2011: VivaAerobus (VVS) launched 2x-weekly, Chicago Midway - Monterrey service. It will later be increased to 3x-weekly, during the high seasons.
737-33A (27285, XA-VIR), (AWW) leased, ex-(LN-KKE).
November 2011: VivaAerobus (VVS) launched service from Monterrey to Miami (2x-weekly) and Orlando (weekly).
March 2012: VivaAerobus (VVS) has expanded its presence at Cancun (CUN) with the launch of a domestic route on March 12. Villahermosa (VSA) will be served with 2x-weekly frequencies using 1 of (VVS)’s 737-300s. (VVS) 1st entered Cancun in mid-2009 and has previously served 3 domestic destinations. Additionally, a new service connecting Mexico City (MEX) and Reynosa (REX) was launched on the same day. 3x-weekly flights will connect the NE city with the capital. Direct competition on the Reynosa route includes 34x-weekly frequencies provided by Aeroméxico (AMX), while the route from Cancun is currently not served by any other carrier, although scheduled services were offered by Aeromar and (ALMA) prior to 2008. Juan Carlos Zuazua (CEO), vivaaerobus, underlines: “At the end of 2011, 30% of all our routes involved new destinations; we target markets with nil or limited connectivity, providing considerable cost and time savings to our customers.”
On March 15, just 3 days after the launch of its Villahermosa service, (VVS) started its 5th route from Cancún (CUN), connecting the popular beach destination with Tuxtla Guiterrez (TGZ). (VVS) now offers 2x-weekly frequencies from Cancún to the capital city of Chiapas in southern Mexico. The 800 km route was last operated by Aeromar (TRO), which operated it between 2006 and 2008; Mexicana (CMA) was the only other airline to ever serve the market, offering services on and off between 1997 and 2005.
August 2012: Mexican airlines saw a +11.2% increase in domestic boardings in the 1st half of 2012, to 13.2 million passengers. The 5 Mexican carriers that operate international services saw traffic increase +31.4% to 2.6 million passengers.
According to the Dirección General de Aeronáutica Civil, Grupo Aeromexico (Aeromexico (AMX) and Aeromexico Connect) led domestic boardings with a 39% market share and 5.2 million boardings, followed by Interjet (AAE) with a 22% market share and 3.2 million boardings passengers.
Volaris (VLS) was next with 2.6 million boarding passengers, up +22.7%, followed by VivaAerobus (VVS) with 1.5 million, Magnicharters (MAM) with 402,332 boarding passengers, and Aeromar (TRO) with 267,031 passengers.
On the international market, Grupo Aeromexico boarded 1.8 million passengers, Interjet (AAE) 291,357; VivaAerobus (VVS) 60,424; and Aeromar (TRO) boarded just 119 international passengers.
Mexico is advocating for its neighboring countries (Belize, El Salvador, Honduras and Guatemala) to agree on an "open skies" policy to jointly market the leisure destination known as Maya World.
Under "open skies," participating countries would benefit where local carriers operate 5th, 6th and 7th freedom rights in the region, linking city pairs such as Tikal - Cancún and Monterrey - San Salvador.
A spokesperson for Mexico’s State of Quintana Roo told local media that "open skies" would bring air fares down and the number of visitors up to 18% to the region within 2 years.
If an agreement is reached, VivaAerobus (VVS) said it could be ready to launch Cancún - San Salvador services by year end.
November 2012: Vivaaerobus (VVS) flies to 3 cities in the USA: Houston, Las Vegas, and San Antonio.
January 2013: VivaAerobus (VVS) will launch 3x-weekly, Toluca - Tampico service and 2x-weekly, Toluca - Villa Hermosa service on March 25.
September 2013: VivaAerobus (VVS) has elected to start 3 new domestic routes on the same day (September 2nd), 2 from its focus city of Guadalajara (GDL), operating to Reynosa (REX) and Torreon (TRC), while its Monterrey (MTY) hub will benefit from an additional connection to Queretaro (QRO). All flights will be flown 2x-weekly by its 148-seat 737-300 airplanes (Mondays and Fridays). Regional brand, Aeromexico (AMX) Connect provides the only competition on 2 of the 3 routes, serving Guadalajara to Torreon (6x-weekly) and Monterrey to Queretaro (18). VivaAerobus (VVS) previously operated flights connecting Monterrey and Queretaro between January 1st, 2007 and May 22nd, 2008. (VVS) now serves 13 domestic destinations from Guadalajara.
October 2013: The VivaAerobus Group has signed a purchase agreement for 52 Airbus A320 Family airplanes (40 A320neo and 12 A320ceo), representing the biggest Airbus (EDS) airplane order by a single airline in Latin American history. The order is worth $5.1 billion at list prices. It also has options for an additional 40 A320neos,
VivaAerobus (VVS), part-owned by (IAMSA), one of Mexico’s largest transportation companies, and Irelandia Aviation, a global low-cost-carrier (LCC) airline developer, will replace its entire fleet of 737-300s to become an all-Airbus (EDS) carrier by 2016. (VVS) has been a pioneer in Mexico’s ’Bus to Air’ model, which is an initiative to convert bus passengers to air travelers.
"These airplanes are intended to provide (VVS) with additional capacity to exploit substantial growth opportunities in Mexico, while growing its main hubs such as Monterrey, Guadalajara, Cancun, as well as in 5 potential hubs that are being evaluated."
To date, >9,900 A320s have been ordered and almost 5,800 delivered to nearly 390 customers and operators. >500 Airbus airplanes are in operation throughout Latin America and the Caribbean, with >800 airplanes sold and a backlog of nearly 400 yet to be delivered. In the last 10 years, Airbus (EDS) has tripled its in-service fleet, while delivering >60% of all airplanes operating in the region.
November 2013: Where are all the Latin American low cost carriers (LCC)s? Aside from Brazil, Mexico, and Colombia, there are no (LCC)s in Latin America, and this is a region with an emerging middle class, rising trade and commerce, and a growing appetite for travel. Beyond these 3 countries, the traffic data shows that legacy airlines are capturing nearly all of this growth.
At latest count, Latin America only has 6. They are the pioneer in the region (GOL) (GOT) and its fellow Brazilian carrier, Azul (AZL); Mexican carriers Volaris (VLS), Interjet (AAE), and VivaAerobus (VVS), plus Medellin-based VivaColombia (VVC). A few others have come and gone (Aires (AIR) (to (LATAM) and Webjet (WEB) to (GOL); AeroContinente Chile (CCL) and Sol, which briefly became AeroHonduras (HND), folded. The only other (LCC)s serving Latin America fly down and back from the USA or Canada.
1 reason is aeropolitics. 2 of the 3 next largest Latin American markets that lack (LCC)s (Argentina and Venezuela (as well as smaller Bolivia)) are effectively closed to new entrants due to policies that favor their government-owned carriers. Those state carriers could launch (LCC)s of their own, but they have little incentive to do it.
The 2nd answer relates to the so-called “unbalanced competition.” The next largest Latin markets that lack home-based (LCC)s after Argentina and Venezuela, are Peru, Chile, and Ecuador. (LATAM) and/or Avianca (AVI) dominate all 3 of these markets.
Latin (LCC)s have been slower, for example, to launch cross-border flights. The grounding of Mexicana (CMA) spurred Mexico’s (LCC)s to fill its vacuum. Volaris (VLS) and VivaAerobus (VVS) have focused solely on domestic and USA markets, but Interjet (AAE) now flies to Cuba, Guatemala, Costa Rica, and Colombia, as well as the USA. VivaColombia (VVC) is starting its own cross-border expansion early. It has applied for permission to fly to Panama City, Mexico City, and Cancun, and hopes to launch these routes in 2014. “International expansion has always been part of our business plan,” says (VVC)’s Posada. He foresees “more interconnected” routes within four-hours of its hub. Cross-border networks are essential in much of Latin America because the domestic markets in many countries are simply too small.
March 2014: See video "VivaAerobus (VVS) 737-300 Flight" - -
April 2014: VivaAerobus (VVS), the Mexican low-cost carrier (LCC), commenced its 2nd route to Puerto Vallarta (PVR), this time with 4 weekly flights from Mexico City (MEX) on April 11th. The 660 km sector will be flown utilizing (VVS)’s 144-seat 737-300s and will face extensive competition from Aeromexico (AMX) (37x-weekly), Interjet (AAE) (14x-) and Volaris (VLS) (9x-). VivaAerobus (VVS) is also serving Puerto Vallarta from Monterrey.
May 2014: VivaAeroBus ((IATA) Code: VB, based at Monterrey General Mariano Escobedo) (VVS) will only revive its plans for an Initial Public Offering (IPO) when market conditions have improved, co-Founder & Adviser, Conor McCarthy, has said. In mentioning a possible late 2015/early 2016 offer period, McCarthy said his airline planned to raise a minimum of USD337 million.
"It's a matter for the board, but I would see it as having potential for float at that stage," he told the "Irish Independent." "The new fleet will be in place, the timing could be right in terms of cost base and network by then."
McCarthy said previous plans to list earlier this year were put off in the wake of a turbulent (IPO) for rivals Volaris ((IATA) Code: Y4, based at Toluca) (VLS).
Having placed an order for 52 Airbus A320 Family airplanes (40 A320neo and 12 A320ceo) with Airbus Industrie (EDS) in October last year, (VVS) has now set its sights on expanding into the Latin American market, where it believes demand will grow in tandem with that of the middle class.
At present, VivaAerobus (VVS) operates 21 737-300s and 2 A320-200s to 26 destinations, located primarily in Mexico as well as in the USA.
VivaAerobus (VVS) formally launched its fleet transition to Airbus A320 airplanes, with the launch of 3 of the type in April. (VVS) will receive an additional +2 A320s before the end of 2014. The A320s, powered by (IAE) engines, have an all-economy Y, 180Y-seat configuration, +32 additional seats or a 22% increase in capacity as compared to (VVS)’ existing fleet of 737-300s.
The A320s will bring (VVS) improved fuel efficiency, performance and range, allowing (VVS) to ultimately expand its network service throughout Mexico and beyond. The A320s will be based in (VVS)' Cancun hub and fly to Mexico City, Monterrey, Veracruz, Tuxtla Gutierrez, Reynosa, and Torreon. Additionally, the A320s will operate from Mexico City to Reynosa and from Monterrey to Mazatlan.
By the end of 2016, (VVS) will have completed its fleet transition from 737-300 to become an all-Airbus (EDS) operator. In October 2013 (VVS) signed a purchase agreement for 52 Airbus A320 Family airplanes (40 A320neos and 12 A320ceos), representing the biggest Airbus (EDS) airplane order by a single airline in Latin American history.
“In less than a month that our A320ceo have been operating, we are pleased to see that our passengers are genuinely surprised with the comfort and reliability the airplane offers,” said Juan Carlos Zuazua (CEO) of (VVS). “We are also beginning to experience the A320’s excellent fuel and operational efficiencies. We expect to see fuel reductions of up to -30% as compared to our actual model, the 737-300, which will help (VVS) reduce its costs even more, translating into lower fares for our passengers.”
A320-232 (2908, XA-TAR), ex-(4R-ABG), (AWAS) (AWW) leased.
September 2014: Airbus (EDS) is set to open a new training operation in Monterrey, Mexico, as local low-cost carrier (LCC), VivaAerobus (VVS) gears up to switch to the A320 family as it replaces its entire fleet of Boeing 737-300s.
Under a 10-year agreement, “Training By Airbus” will provide simulator training and courses for pilots (FC), maintenance (MT) personnel, flight operations engineers and cabin crews (CA) in Miami and Monterrey. This will include >25,000 flight training hours for approximately 750 pilots (FC).
Training for (VVS)’s pilots (FC) is already underway at the training center in Miami, Florida. However, by early 2016, they will start training at a new satellite site at Monterrey’s North International Airport, located on the campus of the University of Nuevo León.
This will be the 2nd Airbus (EDS) Training Center in Mexico, housing an A320 simulator. In June, (EDS) announced it would open a training center in Mexico City by 2015.
November 2014: VivaAerobus (VVS) has added +2 new routes to the USA just in time for Thanksgiving. On November 20th, (VVS) started 4x-weekly flights on the 1,320 km route between Guadalajara (GDL) and Houston Intercontinental (IAH), a route currently served 37x-weekly by United Airlines (UAL). Then, on November 24th, (VVS) commenced 4x-weekly flights on the 443 km route between Monterrey (MTY) and San Antonio, Texas (SAT). This route is already served by Aeromexico (AMX) (daily flights) and Interjet (AAE) (2x-weekly flights). Both of these new routes will be served by (VVS)’ 148Y-seat 737-300s. This brings to 5 the number of USA routes operated by (VVS). Fellow Mexican (LCC), Volaris (VLS) currently operates >30 such routes.
May 2015: Ultra-low-cost carrier (ULCC) VivaAerobus (VVS) has taken delivery of its 1st new A320 following the airplane handover at the Airbus Delivery Center in Toulouse. The A320 is the 1st to be delivered from an order placed in 2013 for 52 airplanes (12 A320ceo and 40 A320neo), which is the largest single deal by a Mexican customer. (VVS) already operates 6 leased A320s and will become an all Airbus (EDS) operator as it completes its fleet transition from 737-300s by early 2016.
Avolon Leasing (AZV) has delivered one new Airbus 320-200 airplane to VivaAerobus (VVS). This delivery is the 2nd of 4 airplanes due to deliver to (VVS).
Including the 1st A320, all (VVS)’ A320ceo are powered by (IAE) engines. The A320neo will be powered by Pratt and Whitney (PRW) engines. The airplanes will be deployed on (VVS)’ domestic network and international routes to the USA.
“Our new fleet of A320s will enable (VVS) to continue enhancing our operational efficiencies by lowering our costs and fares for our passengers, while offering a significant upgrade with the A320 cabin comfort,” said Juan Carlos Zuazua (CEO) of (VVS). “We couldn’t be more pleased to integrate this new airplanes into our growing Airbus (EDS) fleet and we look forward to expanding our network and allowing even more passengers to fly for the very 1st time.”
VivaAerobus (VVS), jointly owned by (IAMSA), Mexico’s largest bus company, and Irelandia, a global low-cost-carrier (LCC) airline developer group, has based its fleet renewal strategy on the A320 Family. The A320’s unmatched operating economics and reliability will play a key role as the airline meets the growing demand for cost-efficient air travel in Mexico.
The A320 Family is a best-selling single aisle product line with almost 11,700 orders to date and >6,500 aircraft delivered to 400 customers and operators world wide. The newest member of the A320 Family, the A320neo incorporates many innovations including latest generation engines and Sharklet wing tip devices, which together deliver >15% in fuel savings from day one and 20% by 2020. With nearly 3,800 orders received from 71 customers since its launch in 2010, the A320neo Family has captured almost 60% share of the market. To date, the A320neo program has 345 firm orders from 6 customers in Latin America. With >950 airplanes sold and a backlog of nearly 500, >550 Airbus airplanes are in operation throughout Latin America and the Caribbean. In the last 10 years, Airbus (EDS) has tripled its in-service fleet, while delivering >60% of all airplanes operating in the region.
December 2015: Avolon Capital Partners, Avolon (AZV)’s joint-venture (JV) aircraft leasing business with Wells Fargo, has acquired 1 A320-200 aircraft on lease to VivaAerobus (VVS). This is the 9th aircraft to deliver to Avolon Capital Partners (AZV).
October 2016: Mexican low-cost carrier (LCC) VivaAerobus (VVS) has taken delivery of the 1st of 40 A320neo aircraft, part of an order for 52 A320 family aircraft (VVS) placed in October 2013. This is the biggest order any Mexican airline has ever placed with Airbus (EDS). A 2nd A320neo delivery is expected by year-end.
12 A320ceos were part of the original order, the 1st of which was delivered in May 2015. Through August 31, (VVS) has taken delivery of 11 new A320ceo aircraft. (VVS) presently operates 20 A320 family aircraft and is phasing out its fleet of Boeing 737-300 airplanes.
“With this 1st A320neo we are 1 step closer to reaching our year-end goal of becoming an all-Airbus operator,” VivaAerobus (CEO) Juan Carlos Zuazua said. “[It will be] the youngest aircraft fleet in all of Latin America.”
VivaAerobus (VVS)’s A320neos are powered by Pratt & Whitney (PRW) Pure Power (PW1100-JM) engines. It is configured to seat up to 186Y passengers in 18 inch wide seats and is equipped with the SpaceFlex cabin.
(VVS) is part-owned by Mexico City-based passenger transport conglomerate (IAMSA) and Dublin-based low-cost carrier (LCC) airline developer Irelandia Aviation.
January 2017: 1 order A320ceo.
February 2017: VivaAerobus (VVS) posted a 2016 net profit of +MXP765.8 million/+$37 million, a +69.2% increase over the (VVS)’s +MXP452.7 million 2015 net income. VivaAerobus (VVS)’ 2016 net income margin was 12.3%, up +2 points from 2015.
In November 2016, (VVS) the low cost carrier (LCC) became an all-Airbus (EDS) operator following the final flights of the remaining Boeing 737-300s in its fleet. As of December 31, 2016, (VVS)’ Airbus (EDS) fleet comprised 19 A320ceos and 2 A320neos.
(VVS) ordered 52 A320 family aircraft in 2013 (40 A320neos and 12 A320ceos) and said it expects to receive another 30 new aircraft in the next 4 years. The entire order is set to be delivered by 2002. The 1st of the A320neos was delivered in October 2016. The new A320neo fleet will be powered by Pratt & Whitney Pure Power (PW1100-JM) engines and are configured with Airbus’ SpaceFlex cabin interior and can accommodate up to 186 passengers.
(VVS)’ full-year operating revenue in 2016 totaled MXP6.2 billion, up +41.4% over MXP4.4 billion in 2015. Operating expenses increased +43% year-over-year (YOY) to MXP5.5 billion. (VVS)’ operating income for the year was MXP668.2 million, up +29.2% from 2015.
Passenger traffic at (VVS) increased 43.4% in 2016 to 6.5 billion RPKs; capacity increased +38.1% to 7.6 billion ASKs. Total load factor for the year was 85.1% LF, up +3.2 points from 2015.
(VVSA) was originally launched in 2006 and was co-owned by Mexico City-based passenger transport conglomerate (IAMSA) and Irelandia Aviation (founders of Ryanair (RYR)). In December 2016, (IAMSA) bought out Irelandia Aviation’s 49% interest in the company, making (VVS) 100% Mexican-owned. As part of that transaction, (IAMSA) sold its 25% stake in Colombian airline Viva Colombia (VVC) to Irelandia Aviation.
Additionally in December 2016, the company named Walmart business executive Gian Carlo Nucci as the new (CEO) of Grupo Viva Aerobus, effective January 9. Juan Carlos Zuazua continues as (CEO) of Viva Aerobus (VVS), guiding airline operations, but now reports to Nucci.
June 2017: Mexico’s federal consumer attorney’s office Profeco has fined 5 airlines for charging fees on customers’ 1st checked bags on flights from Mexico City to the USA and Canada.
The fines, imposed on Mexican airlines Aeromexico (AMX), Interjet (AAE), Volaris (VLS) and VivaAerobus (VVS), as well as New York-based JetBlue Airways (JBL), total MXP22.4 million/$1.4 million.
Profeco said the airlines violated provisions of Mexico’s consumer protection law and civil aviation regulations. The federal agency also said the sanctioned airlines were found to have “engaged in misleading advertising, discriminatory acts, abusive clauses in their membership contract and other practices that violate the rights of passengers.”
Profeco said it is keeping open potential proceedings against United Airlines (UAL) and American Airlines (AAL) for the same infringement, and will resolve the matter regarding the 2 USA airlines in coming days.
The fines were levied on the same day new provisions of Mexican consumer protection and civil aeronautics laws went into effect. Under the civil aviation law, passengers have the right to transport, for free, 1 checked bag weighing up to 25 kg/55 lbs and up to 2 pieces of hand luggage of not more than 10 kg each on national and international flights originating from Mexico.
Profeco said airlines are required to inform passengers of their Civil Aviation Act rights, which stipulate the baggage allowances, when purchasing their tickets.
Aeromexico (AMX) received the largest fine (MXP6.3 million), followed by Interjet (AAE) (MXP5.1 million), Volaris (VLS) (MXP4.5 million), VivaAerobus (VVS) (MXP 4.2 million) and JetBlue (JBL) (MXP2.3 million).
December 2017: Irelandia specializes in developing low cost carriers (LCC)s and has 7 around the world: Ryanair (RYR), Allegiant (WJE), Tigerair (TGR), Viva Air (QUD), VivaAerobus (VVS), VivaColombia (VVC) and most recently Viva Air Peru. Combined, the airlines have a fleet of >420 aircraft.
Click below for photos:
VVS-A320ceo - 2015-05.jpg
VVS-A320ceo AND A320neo - 2013-10
0 737-3B7 (CFM56-3B1) (1137-22958, /85 XA-UGL - - SEE PHOTO; 1140-22959, /85 XA-VIY; 1162-23312, /85 XA-VIX; 1339-23378, /87 XA-VIB; 1501-23856, /88 XA-VIA), EX-(USA), BOUGHT FROM JET PARTNERS. PHASED OUT IN 2016. 149Y.
0 737-3K2 (CFM56-3C1) (2721-27635, /95 XA-VIT), EX-(ZK-SJE) 2012-03. PHASED OUT IN 2016. 149Y.
0 737-3Q8 (CFM56-3C1) (2139-24962, /91 EI-EOZ), EX-(SE-RHT) 2011-03. PHASED OUT IN 2016. 149Y.
0 737-3U3 (CFM56-3C1) (2992-28742, /98 XA-VIZ), EX-(N297CS) 2013-04. PHASED OUT IN 2016. 148Y.
0 737-3YO (CFM56-3b1) (1837-24677, /90 XA-VIJ; 2277-26442, /92 XA-VIK), BF (ASW), EX-(9M-AEC) & (9M-AED). PHASED OUT IN 2016. 149Y.
0 737-301 (CFM56-3B2) (1132-23259, /85 XA-TAR; 1463-23560, /87 XA-VIV). 2006-12. PHASED OUT IN 2016. 149Y.
0 737-301 (CFM56-3B2) (1382-23552, /87 XA-VIF; 1408-23554, /87 XA-VIH), BF (ASW) 2009-12. EX-(PK-AWV; & PK-AWW). PHASED OUT IN 2016. 149Y.
0 737-322 (CFM56-3C1) (1550-23955, /88 XA-VID; 1564-23956, /88 XA-VIE; 1638-24249, /08 PR-GLE). PHASED OUT IN 2016. 148Y.
0 737-33A (CFM56-3C1) (2008-25010, /91 XA-VIL; 2014-25032, /91 XA-VIM), (AWW) LSD 2011-02. PHASED OUT IN 2016. 149Y.
0 737-33A (CFM56-3C1) (2608-27285, /94 XA-VIR), (AWW) LSD 2011-10, EX-(LN-KKE). RETURNED 2016. 149Y.
0 737-33A (CFM56-3C1) (2600-27267, /94 XA-VIQ; 2756-27457, /95 XA-VIS; 2959-27458, /97 XA-VIN), 2011-08. PHASED OUT IN 2016. 149Y.
0 737-36N (CFM56-3C1) (2921-28563, /97 EI-ERD; 2964-28566, /97 XA-VII), AIRCRAFT FINANCE TRUST LSD 2011-02. RETURNED 2016. 149Y.
0 737-36Q (CFM56-3C1) (2883-28660, /97 XA-VIW), EX-N660AG) 2013-03. PHASED OUT IN 2016. 148Y.
2 A320-232 (PW1100-JM) (2908, XA-TAR), EX-(4R-ABG), (AWW) LEASED 2014-08. 186Y.
4 A320-232 (PW1100-JM) (6574, XA-VAA, 2015-05; 6602, XA-VAE, 2015-05; 6857, XA-VAN, 2015-11; 6875, XA-VAO, 2015-11 (EX-(F-WWIY; F-WWBP), AVOLON (AVZ) LEASED 2015-05. 186Y.
13 A320ceo (PW1100-JM), 2015-05. 186Y.
2 +38/40 ORDERS A320neo (PW1100-JM).
Click below for photos:
VVS-3-Javier Suarez 2018-03.jpg
VVS-1-Juan Carlos Zuazua 2013-12
GIAN CARLO NUCCI, CHAIRMAN GRUPO VIVA AEROBUS (2016-12).
Gian was also a Walmart, USA business executive.
ROBERT ALCANTARA, CHAIRMAN.
DR TONY RYAN, DEPUTY CHAIRMAN, EX-(RYR), (GEF) & (WJE).
JUAN CARLOS ZUAZUA, CHIEF EXECUTIVE OFFICER (CEO).
As of (2016-12) Juan reports to Gian Carlo Nucci, Chairman Grupo Viva Aerobus.
DONAL ROGERS, CHIEF FINANCIAL OFFICER (CFO) & DEPUTY (CEO).
JAVIER SUAREZ, VP NETWORK PLANNING, REVENUE MANAGEMENT & E-COMMERCE, EX-QATAR AIRWAYS (QTA)/VUELING AIRLINES (VUZ) (2014-11).
Javier began his aviation career in Boston, USA working in the Ground Operations department of Midwest Express Airlines. He has also worked for some well-known fast growing airlines including Iberia (IBE) Regional AirNostrum in which he worked as Commercial Quality Manager in Valencia, Spain for 4 years. Later, he worked for Qatar Airways (QAT) as a Senior Strategist for almost 2 years in Doha, Qatar. He then joined Vueling Airlines (VUZ) in July 2010. During his 4 years of work as Network Planning Director, he managed to profitably grow (VUZ)´s network from 38 aircraft to 105 aircraft.
In November 2014, he joined VivaAerobus (VVS): He has been part of the management team who have turned around the airline. (VVS) is now the most profitable airline in Mexico. His current role is VP of Network & Fleet Planning, Revenue Management, Distribution & E-Commerce.
Javier holds a Bachelor’s degree in Aviation Management by Universidad Autonoma de Madrid, a Masters in Marketing by (ESIC) University and a Masters in Management by Harvard University, USA.
VICTOR HERNANDEZ, DIRECTOR OPERATIONS (email@example.com).