United Aerospace News

Dominican Republic’s Arajet Aims To Expand U.S. Network In 2027

Fri, 06 Nov 2026 19:38:54 GMT

Dominican Republic’s Arajet Aims To Expand U.S. Network In 2027

MEXICO CITY—Dominican Republic carrier Arajet plans to grow its network in 2027, including adding new routes to the U.S., with eight Boeing 737-8 aircraft scheduled to be delivered during the year.

“The U.S. is our main objective as a market,” Arajet Chief Communications Officer Manuel Luna told Aviation Week during a press briefing at the Latin America and Caribbean Air Transport Association (ALTA) AGM and Airline Leaders Forum in Mexico City. “We’re going to be adding more flights and more routes to the U.S. in 2027.”

The carrier’s fleet is expected to number 17 737-8s at the end of 2026, growing to 25 737-8s by the end of 2027. Luna said that as aircraft are delivered next year, the airline seeks to add new destinations on the U.S. east coast and in the midwest.

Arajet, founded in 2022, operates from bases at Punta Cana International Airport (PUJ) and Las Américas International Airport (SDQ) in Santo Domingo. The carrier is endeavoring to build an extensive network throughout the Americas to both compete with international airlines serving the Dominican Republic and provide one-stop connections between North and South America.

Arajet currently has 30 airports in its network, including six in the U.S.—Boston, Chicago O’Hare, Orlando Sanford, Miami, Newark and San Juan, Puerto Rico. The airline first started serving the U.S. in April 2025 with flights between SDQ and Miami. It now also serves the south Florida city from PUJ.

Arajet flies to Montreal and Toronto Pearson from PUJ but does not plan further expansion in Canada. “We don’t see any other markets there,” Luna said. He added the airline is exploring establishing a partnership with a Canadian carrier to allow passengers to connect to other cities in the country.

Arajet has not yet earned an annual profit, according to Luna. “It’s very challenging right now,” he said. “We were supposed to [achieve profitability] this year, but because of fuel costs we are not there yet.”

Luna added that the carrier’s revenue performance is strong. If jet fuel prices were to return to pre-Iran war levels, Arajet would be profitable “very quickly,” he said

Mexico Regulator to Approve Volaris-Viva Merger by Year-End

Fri, 06 Nov 2026 19:35:51 GMT

Mexico Regulator to Approve Volaris-Viva Merger by Year-End

Mexico’s antitrust regulator, the National Antitrust Commission (CNA), is set to approve the proposed merger between ultra-low-cost carriers Volaris and Viva Aerobus before the end of the year, according to six sources familiar with the matter. The transaction will unite Mexico’s two dominant low-cost operators under a single holding company, Grupo Más Vuelos, creating the country’s largest airline group with few operational restrictions.

The combined group is expected to target an annual volume of roughly 60 million domestic passengers. To address market concentration concerns, regulatory authorities plan to require Grupo Más Vuelos to preserve low airfares, maintain its low-cost operating model, avoid mass layoffs, and maintain the vast majority of both airlines' current route networks due to a lack of competing carrier alternatives.

Regulatory Framework and Operating Conditions

Despite widespread market dominance concerns, regulators intend to approve the transaction with minimal operational disruption to the airlines' existing networks. According to three sources, the regulator considered modifying slot allocations and allowable flight frequencies for the group across major Mexican airports. However, two sources confirmed that regulators ultimately plan to leave those flight quotas unchanged.

To counter market concentration, three sources indicated that Más Vuelos will be required to strictly preserve its budget carrier model. Under these remedies, a designated percentage of airfares must remain within the same price band as comparable low-cost operators across the Latin American region.

The regulatory authority is currently finalizing the operational parameters for how it will define and monitor the route obligations imposed on the newly formed group.

"When you conduct this route-by-route analysis, the only condition you can realistically impose is requiring them to release slots for a third party on highly concentrated routes, such as those with Mexico City as an origin or destination, and perhaps also Guadalajara and Monterrey," said Javier Núñez, a competition expert and former antitrust commissioner.

Regulators also evaluated imposing structural restrictions on IAMSA, the transportation conglomerate owned by Viva Chairman Roberto Alcántara. IAMSA is Viva’s primary shareholder and operates both the airline’s airport shuttle transfer services and several major long-distance intercity bus lines. However, one source noted that the merger is expected to close without significant concessions required from IAMSA.

Official regulatory commentary remains limited while proceedings are active. "The body cannot issue a public statement on the process as it remains open and due process must be respected," a CNA source stated. The agency did not respond to direct requests for comment.

In a written response, Viva stated that it remains attentive to the ongoing evaluation and will continue "collaborating with the authorities" while maintaining confidence in the "strategic merits of the transaction". Volaris similarly stated that it is "working closely with regulatory authorities" and retains full confidence in the deal's strategic logic.

Deal Structure and Executive Leadership

First announced late last year, the transaction is structured as a merger of equals between Volaris—corporately registered as Controladora Vuela Compañía de Aviación—and Viva Aerobus. Both airlines confirmed that they will preserve their independent brand identities, operating certificates (AOCs), customer services, and individual day-to-day operations under a dual-brand holding company structure.

Corporate governance will be shared across both organizations. A filing submitted to the Mexican Stock Exchange (BMV) detailed that the General Extraordinary Shareholders' Assembly approved an amendment to company bylaws to align with requirements set by the Secretariat of Economy's General Directorate of Foreign Investment.

Under the approved structure, Roberto Alcántara, the current chairman of Viva, will serve as Chairman of the Board of Directors for Grupo Más Vuelos for an initial three-year term upon transaction close. Executive leadership will be drawn from both carriers. A source close to Volaris operations noted that the airline viewed the alliance as necessary, highlighting Volaris Chief Executive Officer Enrique Beltranena as a central figure in negotiating the deal.

International antitrust regulators have already cleared the transaction. The merger received approval from Colombian competition authorities in April. In early September, the US Federal Trade Commission (FTC) granted clearance for Controladora Vuela Compañía de Aviación to acquire Autobuses de la Piedad, the main shareholder of Viva, removing the primary regulatory obstacle in the United States.

Domestic Market Concentration and Route Overlap

Together, Volaris and Viva Aerobus control approximately 75% of domestic flight volume in Mexico and less than 20% of international flights. In the domestic passenger segment, Volaris holds a 36% market share while Viva commands 39%, bringing their combined domestic share to 75%. Flag carrier Aeroméxico holds 24% of the market, with regional carriers accounting for the remaining 1.3%.

Viva Aerobus. - 39% - Focuses primarily on domestic low-cost point-to-point network
Volaris. - 36%. - High domestic share; expanding cross-border low-cost routes
Aeroméxico. - 24%. - Maintains lead in international routes among Mexican carriers
Other Local Carriers. - 1.3%. Minor regional coverage
Grupo Más Vuelos (Combined). - 75%. ~. 60M annual domestic passengers; sole operator on 55 routes

An analysis of flight route data indicates that Volaris and Viva currently compete directly on 85 overlapping domestic routes. Following the consolidation, Grupo Más Vuelos will become the sole remaining operator on 55 of those routes. Route overlap is heavily concentrated in flights originating from or destined for Mexico's key economic hubs of Guadalajara and Monterrey.

Sources involved in regulatory discussions noted that both carriers have already begun reducing flight frequencies on select overlapping corridors in anticipation of final merger approval.

Competitor opposition has been persistent. Aeroméxico has repeatedly expressed formal opposition to the transaction, raising concerns over whether regulatory conditions can effectively limit Grupo Más Vuelos' total market share. Aeroméxico did not respond to requests for comment.

Financial Pressures and Political Context

The merger comes after years of severe financial hardship for low-cost Mexican operators following the COVID-19 pandemic. Both Volaris and Viva faced prolonged aircraft groundings driven by mandatory Pratt & Whitney engine inspections, compounded by sustained spikes in global aviation fuel prices.

Unlike legacy competitor Aeroméxico, which underwent formal Chapter 11 financial restructuring, neither Volaris nor Viva entered restructuring proceedings. Furthermore, Mexican airlines received no direct government financial bailouts or relief subsidies during the pandemic.

Political dynamics in Mexico City have also influenced the regulatory timeline. Two sources cited pressure from the Mexican federal government to approve the consolidation. Both Volaris and Viva serve as the primary operators at Felipe Ángeles International Airport (AIFA), a state-operated airport outside Mexico City that has struggled to generate substantial passenger traffic since opening in 2022.

To secure federal backing, both airlines reportedly committed to increasing flight frequencies at AIFA as well as at the newly built Tulum airport, despite low initial passenger demand at both locations. The Mexican Presidency did not respond to requests for comment regarding government involvement.

The approval will represent a landmark decision for Mexico’s new competition watchdog. The CNA replaced the former Federal Economic Competition Commission (Cofece) last year, and industry analysts view the Más Vuelos ruling as a crucial test of the regulatory body's enforcement standards given the sheer scale of the aviation sector. In 2007, Mexico's previous antitrust commission blocked a proposed acquisition of Aeroméxico by legacy carrier Mexicana due to market concentration concerns; Mexicana subsequently entered bankruptcy in 2010 before being revived as a state-run entity in 2023.

LATAM Brazil takes first Embraer E195-E2 jet as it broadens its domestic network

Fri, 06 Nov 2026 19:32:05 GMT

LATAM Brazil takes first Embraer E195-E2 jet as it broadens its domestic network

LATAM Airlines Brazil has begun the process of taking delivery of its first Embraer E195-E2, as declared by both companies on October 8, 2026. The aircraft is the first of 12 E195-E2s the airline expects to receive by year-end.

The delivery follows LATAM Airlines Group’s announcement in September 2025 that it would acquire up to 74 E195-E2 jets.

Before entering service, the first aircraft still has to clear customs, receive cabin interior approval and complete certification with Brazil’s National Civil Aviation Agency (ANAC). It is expected to enter service in the coming days.

LATAM targets more than 70 Brazilian airports by 2027 as E2 opens smaller markets

The new jets are part of LATAM’s effort to reach smaller and mid-sized markets in Brazil. The airline now serves 63 airports in the country, up from 44 only six years ago.

According to LATAM Brazil CEO Jerome Cadier, the aircraft should allow the carrier to add new markets with strong demand, serving over 70 Brazilian airports by as early as 2027.

First 14 jets to fly 42 routes, adding Cabo Frio, Macaé, Ji-Paraná and Rondonópolis

The E195-E2s are scheduled to begin commercial operations between November 2026 and March 2027.

In the first phase, LATAM plans to fly 14 of the jets on 42 routes, including eight new routes. Four of those are cities not currently served by the airline: Cabo Frio and Macaé in Rio de Janeiro state, Ji-Paraná in Rondônia and Rondonópolis in Mato Grosso.

The airline claims that this would give it the largest domestic network in its history. It is also looking into up to 18 additional destinations for the aircraft in 2027.

Embraer CEO Francisco Gomes Neto said that the jet would support LATAM’s connectivity strategy and the growth of air transportation in Brazil.

Using Embraer’s ‘Profit Hunter’ demo jet cut certification and crew training time by half

LATAM expects to finish certification roughly one year after announcing the order.

To speed up the process, the airline used an Embraer demonstration aircraft, known as the ‘Profit Hunter’, for evacuation demonstrations, evaluation flights and crew training.

According to LATAM, this has cut the time needed for those steps by about half, without changing safety requirements.

136-seat cabin with no middle seats and up to 20 Premium Economy seats

LATAM’s E195-E2s will have 136 seats in a two-by-two layout, with no middle seats.

Inside an airplane cabin with rows of blue seats and red headrests suitcases stored in the overhead compartments

image

Depending on the configuration, up to 20 seats will be in Premium Economy, which offers more legroom and recline and upgraded onboard service. The rest will be Economy.

All seats will have USB-C ports. Registered members of the LATAM Pass loyalty program will receive free Wi-Fi, and passengers will have access to the airline’s LATAM Play entertainment platform.

E195-E2 burns up to 30% less fuel than first-generation E-Jets

The E195-E2 is the largest model in Embraer’s E-Jets E2 family.

According to Embraer, it burns up to 30% less fuel than first-generation E-Jets, has a range of 3,000 nautical miles (5,556 km) and uses fourth-generation fly-by-wire controls. The manufacturer reckons that the E2 family cuts carbon emissions by up to 25%.

Embraer has delivered more than 2,000 E-Jets and E-Jets E2 aircraft combined. They are operated by more than 80 airlines in 50 countries.