Page 21 - AAA APRIL - MAY 2017 Online Magazine

FeAtUre LOW COST CARRIERS

Winning Formula

Vivaaerobus shows the way for other low-cost carriers around the globe
By Arun Sivasankaran

Its ultra-low cost model has proved to be a as possible, maximising inherent advantages
roaring success in Mexico, but VivaAerobus and learning from global best practices.
isn’t planning to try its winning formula in
other Latin American countries, at least Off to a Blistering Start
for now. “There is a lot to do in Mexico still,” “We are the youngest airline in Mexico and
says Juan Carlos Zuazua, CEO of the ultra- growing very fast,” said Zuazua. “We have
low cost carrier. “Compared to other Latin the lowest cost in all of the Americas among
American countries, the Mexican market has the publicly traded airlines. We have the
the lowest air penetration. We will continue youngest fleet after the transition to A320;
to focus on Mexico for several years. We two years ago, we had the oldest fleet.” The
will do some routes outside of Mexico, from ultra-low cost carrier has flown 33 million
Mexico to north and south.” Jointly owned by passengers since it started operations in
IAMSA, Mexico’s largest bus company, and November 2006, with numbers picking up
Irelandia, a global low-cost-carrier airline with each passing year. In 2016, the number
developer group, VivaAerobus has been able touched 6.6 million, a substantial increase
to grab a market share of 14 percent in little over the previous year. For about 20 percent
more than a decade of existence. of the passengers, it was their first time on Juan Carlos Zuazua, CEO VivaAerobus
Worryingly for competitors, the airline’s a flight.
pace of growth shows no signs of flagging. At operators have been vying with each other
MRO Latin America, Zuazua dwelled on the The Bus Advantage in their attempts to persuade people to
multipronged strategy behind the company’s In a country where 2.8 billion passengers fly. Their attempts have been successful as
success, one built on eliminating risk as much travel between cities by bus every year, well; passenger growth has been in double

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