ABSTRACT
Developments in Latin America are of especial interest: increases in income levels have afforded major opportunities for airline growth and entry; some of the legacy carriers have cast off accustomed ways and embarked on new business models; and some of the new airlines have offered business class as well as economy class services. Volaris started with A319 aircraft, later added A320s, and then began to dispose of some A319s. Volaris has become a profitable airline with low costs and a good reputation. Like Volaris, VivaAerobus started some flights from Mexico City in 2010, and subsequently developed its network in southern Mexico. The establishment of VivaColombia whose ownership is related to that of VivaAerobus in Mexico may signal the beginning of a trend for the cross-border expansion of low-cost airlines in Latin America. While agreements between governments in Latin America have supported growth in international travel, the pursuit of national interests has sometimes resulted in obstacles to airline entry.
