Our Strategy

The growth strategy is based on a simple set of principles in order to maintain the lowest operational costs in the markets where Viva Aerobus operates:

ULTRA-LOW-COST BUSINESS MODEL

Viva Aerobus will continue to drive operational efficiencies and reduce costs by:

  • Continuing to evaluate new opportunities to outsource, non-core functions and closely managing its existing outsourcing agreements
  • Negotiating strategically important contracts with highly prestigious and renowned suppliers
  • Maximizing the productivity of our employees through attractive wage schemes
  • Negotiating incentives, discounts and rebates with airports to achieve lower airport costs
  • Minimizing sales, marketing and distribution costs, while maximizing the use of social networks, and free public relations and consulting from our commercial partners to increase the market awareness and reduce costs related to customer acquisition

ACQUISITION AND OPTIMAL USE OF FLEET

As of 2014, the Company started a transition process in order to have a fleet composed of A320 aircrafts, thus achieving reductions in maintenance and fuel costs per seat when compared to its previous fleet. In 2013 Viva Aerobus arranged the purchase of 55 new aircraft of this model (15 A320ceo and 40 A320neo), to be delivered between 2015 and 2022. Moreover, in 2018, Viva Aerobus announced the second largest aircraft acquisition in its history, purchasing 25 Airbus 321neo, in addition to the conversion of 16 A320neo aircraft from the 2013 purchase order to the A321neo model. Therefore, the Company expects an overall reduction in its cost per seat for 2025, following the reception of the remaining aircraft of its 80 aircraft request (15 A320ceo, 24 A320neo and 41 A321 neo), in line with the conditions agreed with Airbus.

Long-term strategic alliance with Grupo IAMSA

Direct access to approximately 260 million bus passengers of Grupo IAMSA through more than 300 bus stations in Mexico, bolstering bus-to-air conversion.

Rigorous and permanent evaluation of routes to generate greater profitability

Viva Aerobus continues to evaluate the profitability of its routes and adjust its capacity as appropriate. Through network planning process, the Company carries out a strategic selection of routes where it holds a significant competitive advantage, where it can stimulate demand and generate positive returns within a reasonable time frame.

Expansion of ancillary revenue sources

Passenger traffic growth through Viva Aerobus’ network strategy will provide further opportunities to expand ancillary revenue. The Company anticipates that there is still substantial potential for revenue growth per passenger through the continuous optimization of its current fee and product pricing and sales strategies, as well as through the incorporation of new ancillary products into the portfolio.

During 1Q20, net ancillary revenue accounted for 49.0% of total revenue and was 21.0% higher than in the same period 2019.

Viva Aerobus is confident that attracting a higher number of passengers through the lowest base fares, while maximizing incremental revenue opportunities by offering customizable products and services, leads to a greater profitability.