Introduction

Allegiant Air and Viva Aerobus, two of the largest low-cost airlines in the United States, recently announced their plans to form a joint venture – but those plans were quickly dashed after Allegiant’s pilots overwhelmingly rejected the agreement. This article will provide an overview of the failed partnership, its effects on the industry, and the reasons why the pilots ultimately said no.

Pilots Resoundingly Reject Joint Venture

On April 26th, 2021, Allegiant Air pilots voted to reject a joint venture between their company and Viva Aerobus that would have allowed the two airlines to “pool their resources and create a unified platform for customers.” The joint venture would have been beneficial for both companies, allowing them to access new markets, manage costs, and benefit from a larger customer base.

Despite these potential benefits, the pilots resoundingly voted against the joint venture, with 96% of them rejecting the proposal. The pilots cited their “lack of trust” in the company and concerns over their job security as the main reasons for their decision. In a statement, the pilots said that they felt “Allegiant Air would be taking advantage of the joint venture to try to cut costs and reduce wages, benefits, and job security.”

Allegiant Air, Viva Aerobus Partnership Falls Through

With the pilots’ rejection of the joint venture, Allegiant Air and Viva Aerobus were forced to abandon the partnership. In their joint statement, the two airlines said, “Given the pilots’ strong opposition, we have agreed to cease negotiations on the joint venture and will not pursue the transaction.”

The joint statement also noted that the two airlines “remain committed to working together in the future” and that they “continue to be committed to providing low-cost, safe, and reliable air travel for customers in the United States.”

Industry Unaffected by Failed Partnership

The failed joint venture between Allegiant Air and Viva Aerobus is unlikely to have any major effects on the airline industry. While the partnership could have provided some benefits for both airlines, the other low-cost airlines in the United States are unlikely to be affected.

Furthermore, the two airlines’ commitment to “continue to work together in the future” and provide low-cost flights indicates that they may still pursue a partnership in the future. The industry will be watching to see if and when this happens.

Conclusion

The joint venture between Allegiant Air and Viva Aerobus fell through after the pilots resoundingly rejected the agreement. While this could have been beneficial for both airlines, it is unlikely to have any major effects on the industry. However, the two airlines’ commitment to “continue to work together in the future” could lead to another partnership in the future.