"At present, Allegiant does not serve any international market and does not compete with Viva in any relevant city pair. Volaris further claimed that the proposed VivaAerobus and Allegiant Air merger does not even need an ATI to be implemented. These developments mean, in Volaris's opinion, that the DOT would not be able to fairly assess the competitive landscape in Mexico and that any assessment would be further complicated by Mexico's downgrading to IASA Category 2, which bans the opening of any new routes to the US. The airline blamed these changes for the suspension of services to Ontario International, Fresno Yosemite, and San José, US, while also stressing that Felipe Ángeles was not a viable alternative due to its distance from the city and poor connections. The LCC alleged that the capacity restrictions at México City Int'l were not applied even-handedly, and that it was forced to cut its capacity more than its competitors, losing 1,610 slots between April 2022 and January 2023. " throw into sharp question the openness of the market and ability of parties such as Volaris to compete on fair and non-discriminatory terms, a predicate to the grant of ATI," Volaris said. Volaris highlighted that the Mexican government is actively promoting México City Felipe Angeles while simultaneously restricting capacity at México City International. In a wide-ranging answer to the US Department of Transportation, the Indigo Partners-backed LCC stressed that Mexico's current aviation policy developments rendered a meaningful competitive analysis of the merger impossible. Volaris (Y4, México City International) has objected to the proposed immunised joint venture between rival low-cost carriers VivaAerobus (VB, Monterrey Mariano Escobedo) and Allegiant Air (G4, Las Vegas Harry Reid) on grounds ranging from Mexico's regulatory volatility and slot policy to the spuriousness of the proposed alliance's antitrust immunity (ATI).
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