Volaris and Viva propose creating one of the largest low cost groups

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Subject to approvalón, Volaris and Viva They announce the creationón of a new Mexican Aerol Groupídirections to accelerate aviation growthón and connectivity in México.

Vuela Compa Controllerñíthe Avición, S.A.B. of C.V.. (NYSE: VLRS and BMV: VOLAR) («Volaris» O «the companyñía») and Viva Aerobus Group, S.A. of C.V.. («Viva») announced today that they have reached an agreement to form a Mexican airline groupídenies («the aerosol groupídenies») under a holding company structure, with the aim of increasing trips toéprisoners at low prices and connectivity in México and the foreigner.

The two airíneat maintenanceán its current operations under its operating certificatesón independent and differentiated brands, preserving existing route options for passengers, while expandingían aún más point-to-point travel options.

Volaris and Viva seek to join

It is expected that this transacción generate important benefits for collaborators, the passengers, society in general, suppliers and shareholders of both Volaris and Viva. Simultaneouslyáprecisely the new group will boost investmentón, employment, connectivity toérea, The tourism, and economic developmentómonkey of everything México.

With greater economyíscale onesés of this new group of Aerolídenies, Volaris and Viva will benefitán lower fleet ownership costs, better access to capital and a positionóN Financial más sólida. This allowá both airíaims to expand its offering of low-cost, high-quality services, making trips toéreos sean más accessible to a group más spacious passenger, with the aim of expanding market reach and stimulating demand.

«We estimate that the trainingón of the new Aerol groupíneas allow usá boost aviation growthón to México, in línea with the model of low prices and point-to-point flights that has revolutionized our industry in the úlast two daysérock», said Enrique Beltranena, president and CEO of Volaris. «The economiesíace of scale and expansionón distribution capacityón allow usán competeún más effectively in domestic and international markets by reducing fleet ownership costs. Así, we will be able to offer low cost flights to aún más passengers as we seek sustainable growth, we take advantage of a fleet más efficient and reduce costs”.

«The to intendón is that this transactionón allow both Viva and Volaris to offer low and más point to point flights, a aún más cities throughout México and the foreigner, benefiting in theóto the passengers, but alsoén to the economiesías and local communities», said Juan Carlos Zuazua, Viva CEO. «Both airídenies, who share a similar DNA and low-cost mentality, he creíalways on the importance of making travel possible for everyone. Our passengers choose Viva and Volaris for their direct point-to-point flights, Reliable customer service and low prices, so maintaining our ultra low cost strategy is essential not sóto sustain growth, but alsoén to deepen the loyalty of our passengers. Together, we will continue to offer más low cost flights for our passengers».

Expected benefits

For the Aviation Industryón Mexicana

• Puts within reach of meás passengers the ultra-low-cost model. The aviation sectorón of MéMexico can redefine itself as a catalyst for national prosperity and continue to drive democratization.ón of aviationón.
• Genera economyíace of scale to achieve a base más sógrowth fight. Recent supply chain setbacks and issues with equipment and engine manufacturers have had disproportionate impacts on operating costs.ón of the aerosolsíultra-low-cost and smaller-scale lines. As part of the Aerol groupídenies, Volaris and Viva performán economyíace of scale to ensure sustainable growth, optimizationófleet size and reductionón of costs in fleet ownership.
• Preserve and strengthen two recognized Mexican brands. It allows both Volaris and Viva to be m organizationsás resilient and competitive, able to thrive in new regional markets while maintaining their ultra-low-cost DNA to stimulate demand.

For Our Passengers

• Maintains existing options for passengers. Both Volaris and Viva will maintainán its current operations under independent operator certificateséprisoner and their respective tíconcession titlesón, preserving existing route offerings for passengers, while expanding their distribution capabilitiesón and explore collaborating on benefits such as their frequent flyer programs: Doters y Altitude.
• Create new sun travel optionséaesthetics and expands access. To formacióAerol Group No.íneas expandá access to travelélow-cost inmates and provideá to the passengersás convenient alternatives throughés of más point-to-point travel solutions, with new operational bases in cities and improved connectivity acrossés of potential c agreementsóI say shared between both airídenies.
• Improve international connectivity. Volaris and Viva expandán your reach and continueán offering low rates and high estáquality standards in their services to communities abroad, and tourists, who visit México, además to provide passengers with greater options throughés of global c associationsóI say shared and distribution systemsón.

For Our Collaborators

• Improves job stability for Volaris and Viva employees. Both Volaris and Viva will maintainán their operator certificates and the daily tasks of their collaborators continueán normally protecting sources of employment.
• Create new local jobs. For each new aircraft put into service, tíThey are typically created between 55 and 60 direct jobs, and an estimate of four times m is generatedás indirect jobs in adjacent sectors while new operational bases open potential relocation opportunitiesón for current collaborators and new job offers for future collaborators.
• Generates new opportunities and professional development for Volaris and Viva employees. The new Aerol groupíneas será well positioned to invest in your fleet, technologyía, infrastructure, training centersón, maintenance and tool centers, what will resultía in the growth of high-paying employment opportunities.

For Our Communities

• Economic transformationíace in everything México. Volaris and Viva estarán in the possibility of considerably increasing operations in the metropolitan area of ​​the City of México, including at Felipe International Airport Ádrooling, así how to open new operational bases nationwide, promoting regional development and connectivity by replicating what has been achieved in current operational bases such as Monterrey, Guadalajara, Delún, metropolitan area of ​​the City of MéXico and Tijuana.
• Support other related industries. Tourism and trips to visit friends and family and business trips will benefitán significantly with this new group of Aerolídenies, strengthening hospitality sectors, retail and tourism, which are engines of national growth.
• Improve connectivity and expandíto access. The low-cost flight model of the new Aerol groupíyou want to playá an important role in the connectivity of communities in Américh latina, EU, the canadaá, Expanding reach in European marketsámonkeys.

For Our Shareholders

• Reduces aircraft ownership costs throughés financial profile más sólido. The new Aerol groupíno more expects to haveá Optimized unit costs with low leverage and better access to lower cost capital.
• Provides better opportunities for growth. With lower fleet costs both Viva and Volaris continueán seeking sustainable growth always driven by customer demand.
• Create significant value for shareholders. Volaris and Viva operate with a high degree of fleet compatibility, airport infrastructure, technologyía, reservation systems, suppliers and capabilities tétechniques, generating substantial potential for synergies.  

Transaction detailsón

Volaris and Viva have entered into an agreement to create a new Mexican airline groupídenies. under the téterms of the agreement, Viva and Volaris shareholders combineán its holding companies through a mergerón between equals. At closing, Viva shareholders receiveán newly issued sharesón of the controlling company of Volaris and the shareholders of Volaris will maintainán his actions, and each shareholder group owná the 50% of the Mexican Aerol groupíneas on a fully diluted basis.

The Boards of DirectorsóVolaris and Viva approved the transactionón unanimously, what isá subject to regulatory approvals, usual closing and approval conditionsón by the shareholders of Volaris and Viva. The transaction is expectedón is completed in 2026. The holding company's actions continueán quoting púpublicly on the stock exchanges of México (BMV) and new york (NYSE).

Leadership and Governance

Both Volaris and Viva continueán operating as separate entities, with their current leadership structures. At closing, the holding company beá supervised by a Board of Directorsón composed of members of Volaris and Viva. The new groupéreo beá chaired by Roberto Alcántara Rojas current president of the Viva board.