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, Viva Aerobus commenced the transition to a fleet of A320 aircraft models, resulting in lower maintenance and yet fuel costs per seat compared to the old fleet. Likewise, the Company expects to achieve an overall reduction in the cost per seat once it receives, in 2022, the 55 A320 aircrafts agreed upon in the purchase agreement with Airbus. Under the former, signed in 2013, Viva Aerobus is bound to purchase 55 new units of this aircraft family to be delivered between 2015 and 2022, including 15 A320ceos and 40 A320neos, which offers a maximum 168-seats configuration. Additionally, we have secured call options of up to 40 additional A320neos, as these units save up to 15% more yet fuel than A320ceos.

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 3Q18, net ancillary revenue accounted for 46.1% of total revenue and was 43.7% higher than in the same period 2017.

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.