Viva’s inaugural JOLCO financing with MUFG and Three i’s Capital introduces a new asset-backed funding model to Mexico’s aviation sector. The transaction financed an Airbus A321neo delivery, diversifying funding options for domestic airlines while marking a new channel for Japanese investment in Mexico’s airline industry.

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Viva has finalized a financing agreement with Mitsubishi UFJ Financial Group (MUFG) under a Japanese Operating Lease with Call Option (JOLCO) structure. The transaction, arranged jointly by MUFG and Tokyo-based asset manager Three i’s Capital, financed the delivery of an Airbus A321neo aircraft received by the Mexican ultra-low-cost carrier in May 2026.

The agreement marks Viva’s first aircraft financing under a JOLCO structure. It also represents Three i’s Capital’s inaugural aircraft leasing investment. Airlines frequently use JOLCO structures to secure asset-backed financing from Japanese equity investors, benefiting from competitive financing costs and greater operational flexibility than many alternative aircraft acquisition structures that include purchase options, according to a briefing by law firm Morgan Lewis.

“We are pleased to support Viva in its first JOLCO transaction, a historic financing that reflects the continued evolution of the airline’s fleet strategy,” said Aqmar Chowdhury, Deputy Head of Aviation Origination for the Americas, MUFG.

The transaction broadens the range of financing options available to support Viva’s fleet expansion plans. Ciprian Rodríguez, Executive Fleet Director, Viva, said the financing enhances the airline’s access to diversified funding sources while strengthening its long-term relationship with MUFG to support future fleet renewal and expansion. Three i’s Capital said the transaction establishes its presence in the aircraft leasing market alongside Viva and MUFG and is expected to create opportunities to participate in future aircraft financing transactions.

The financing follows the release of Viva’s 5M26 operating results, which showed lower passenger traffic as the airline continued adjusting capacity to offset aircraft availability constraints caused by ongoing Pratt & Whitney engine inspections.

In May 2026, total passenger traffic declined 1.4% year over year, while the airline’s load factor improved to 89.0%, supported by disciplined capacity management, particularly on international routes. Viva CEO Juan Carlos Zuazua said the company proactively adjusted capacity in response to the current macroeconomic environment and higher fuel prices. He added that while Pratt & Whitney engine groundings continue to limit fleet availability and consumer demand remains cautious, the airline remains focused on operational reliability and aligning capacity with market demand.

Volaris Shareholders Approve Merger to Form Grupo Mas Vuelos

The aircraft delivery and financing agreement follow shareholder approval of Volaris’ proposed merger with Viva. The transaction was approved during an extraordinary shareholders’ meeting on March 25, receiving 91.7% support to create a new holding company, Grupo Más Vuelos, also referred to as Grupo Mexicano de Aerolíneas.

Under the approved structure, the merger will be executed at the holding company level. Volaris will issue 1,078,528,426 new shares to IAMSA Luchtvaart, Viva’s current shareholders. Shareholders also authorized the issuance of 87,448,251 ordinary registered shares to be held in treasury. Upon completion of the transaction, the existing shareholders of each airline will each own a 50% fully diluted equity stake in the new parent company, which will remain publicly listed on both the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE).

Despite the combined ownership structure, both airlines will continue operating under their existing brands while retaining separate operating certificates and concession titles. The new holding company’s board of directors will be chaired by Roberto Alcántara, current chairman, Viva.

Company executives said the merger is intended to address supply chain disruptions and engine maintenance bottlenecks that have increased operating costs for smaller carriers. By combining operations under a single holding company while maintaining separate airlines, the companies aim to leverage their common Airbus A320-family fleets to achieve economies of scale, reduce unit costs, and strengthen liquidity.

The transaction remains subject to regulatory review by the National Anti-Monopoly Commission (CNA) and COFECE. According to the merger filing, the combined airline group would control approximately 69% of Mexico’s domestic passenger market, while independent estimates from Kapital Grupo Financiero suggest the share could reach 73% domestically and 17% internationally. Volaris CEO Enrique Beltranena said the antitrust review could take up to one year to result in unconditional approval, conditional authorization, or a final ruling.