VivaAerobus, insights about a successful fleet transition

When Juan Carlos Zuazua, VivaAerobus CEO, signed a purchase agreement with Airbus in September 2013 for 52 A320 Family aircraft, he knew he had a challenging but rewarding path ahead of him.

This record-breaking purchase agreement is to date the largest Airbus order placed by a Mexican customer, and laid the foundation for a long-lasting partnership between Viva and Airbus. The airline was operating 737-300 aircraft and had to up gauge to the most modern flight technology in order to keep up with the expanding Mexican market demand and their fast-growing bus-to-air concept.

To transition more Mexicans from their long bus journeys to the comfort of air travel for an equivalent or lesser fare, VivaAerobus needed a product that would bring them the lowest cost possible. Its shareholders, Grupo IAMSA (the largest ground transportation company in Mexico) and Irelandia Aviation (an Irish corporation headed by Declan Ryan and the former owner of Tiger Airways and Allegiant) launched an extremely thorough and bottom-line analysis, and the decision to switch to a different aircraft type was evident.

Having started a new era with second-hand (six-to eight-year old) A320s, the Monterrey-based airline received its first brand new Airbus plane in May 2015. Optimally designed to serve the needs of an Ultra-Low Cost Carrier, VivaAerobus’ A320ceo are fitted with fuel-efficient Sharklets and customized with space-flex cabin innovation to offer an optimum 186-seat configuration. This ambitious undertaking led to the opening of Airbus training facilities in Monterrey and Mexico City to simplify and accelerate the training process of Viva’s mechanics, cabin and flight crews.

While its fleet of A320s kept growing, VivaAerobus’ financial results went from good to impressive. By the end of 2015, the operator’s EBITDAR margin increased to almost 40 percent. Also, not only did Viva’s seat capacity rise, but load factors went up from 77 percent to 84 percent this past summer. Along with improved financial results, customer experience improved considerably as well. With modern design, larger storage for carry-ons and the widest seat in the industry, travellers’ loyalty to the Viva brand has skyrocketed.

VivaAerobus has managed to achieve an inspiring model of transition, not only by capturing market share from its competitors but by stimulating demand and inviting more people to experience the joy of flying. In November Viva will celebrate its 10th anniversary and become a full Airbus operator, while having the youngest fleet in the region. Viva’s first A320 Neo delivery in October will undoubtedly only further strengthen this fast-growing airline, and allow them to provide air travel access to an increasing number of Mexican people.

For more information:

Guillaume Gressin, Regional Sales Director, Latin America & Caribbean
Guillaume.gressin@airbus.com

Olivier Schuler, Airline Marketing Manager, Latin America & Caribbean
Olivier.schuler@airbus.com