This article is based on an official press release from Amadeus.

TUI Airline Selected as Launch Customer for Navitaire Stratos Retailing Platform

In a significant move toward modernizing digital travel infrastructure, TUI Airline has been announced as the launch customer for Navitaire Stratos, a next-generation airline retailing platform. According to an official press release from Amadeus, the parent company of Navitaire, this partnership marks a transition from the legacy “New Skies” system to a cloud-native, AI-driven environment designed to facilitate “Offer and Order” management.

The collaboration aims to overhaul TUI’s digital capabilities, moving the leisure carrier away from rigid, traditional ticketing systems toward a flexible, e-commerce model comparable to major online retailers. By adopting Stratos, TUI Airline intends to enhance its ability to sell personalized travel bundles, manage complex itineraries, and integrate third-party ancillaries directly into the booking flow.

The Shift to “Offer and Order” Management

The aviation industry is currently undergoing a technological paradigm shift known as “Offer and Order” management (OOMS). Traditionally, airlines have relied on Passenger Service Systems (PSS) that separate schedules, fares, and ticketing into distinct, often disjointed, databases. This legacy architecture can make modifying bookings, such as adding a hotel room or changing a flight leg, technically complex.

Navitaire Stratos is designed to replace these silos with a unified system. According to the announcement, the platform utilizes open architecture and artificial intelligence to generate dynamic offers. This allows the airline to present a single, comprehensive “order” that includes flights, accommodation, and activities, rather than a collection of disparate tickets and reservation numbers.

The “Amazon-ification” of Booking

One of the standout features of the Stratos platform, as highlighted in the release, is the introduction of shopping cart functionality. While standard in general e-commerce, the ability to add items to a cart, save the session, and return later to complete the purchase is relatively rare in airline booking engines due to the volatility of ticket pricing and inventory.

TUI Airline plans to leverage this feature to reduce friction for leisure travelers. The new system will allow customers to build complex holiday packages over time, saving their progress as they coordinate with family members or travel companions. The platform is also designed to support intelligent upselling, offering relevant add-ons such as baggage upgrades, meals, or car rentals based on specific customer data.

Strategic Partnership and Executive Commentary

TUI Airline, which operates a fleet of over 130 aircraft including Boeing 737 MAX and 787 Dreamliner jets, has maintained a partnership with Navitaire for over two decades. This new agreement represents a deepening of that relationship rather than a new vendor selection. The transition to Stratos is positioned as a critical step in TUI’s digital transformation strategy.

Peter Glade, Chief Commercial Officer at TUI Airline, emphasized the importance of this technological upgrade in the company’s official statement:

“We are on a journey to build the most modern airline commercial set up in the industry. Navitaire Stratos will be a cornerstone of this transformation… It will elevate our retailing capabilities with intelligent recommendations, dynamic offers, and a shopping cart that makes it easy for customers to convert their selections into an order or save them for later.”

Amadeus views this launch as a benchmark for the broader low-cost and hybrid carrier market. Cyril Tetaz, Executive Vice President of Airline Solutions at Amadeus, noted the long-term implications of the project:

“As the group transitions from our New Skies solution, close collaboration on a shared long-term roadmap will ensure business continuity, while helping shape the next-generation Offer and Order solution of reference for low-cost and hybrid carriers.”

AirPro News Analysis

Why Leisure Carriers Lead the Retail Revolution

While legacy network carriers often focus on corporate contracts and frequency, leisure carriers like TUI are uniquely positioned to benefit from the “Offer and Order” revolution. Leisure travel is inherently more complex than point-to-point business travel; it often involves multiple passengers, heavy baggage requirements, and the need for ground transportation or accommodation.

By moving to a cloud-native platform like Stratos, TUI is effectively acknowledging that it is no longer just a transportation provider, but a digital travel retailer. The ability to “save for later” is particularly potent for the leisure market, where the booking window is longer and purchase decisions are often collaborative. If TUI can successfully implement a “shopping cart” experience that mimics Amazon or Uber, they may significantly increase their “share of wallet” by capturing ancillary spend that might otherwise go to third-party aggregators.

Operational Resilience

Beyond retailing, the shift to cloud-native infrastructure offers operational benefits. Legacy PSS platforms are notoriously difficult to update and maintain. A cloud-based system allows for faster deployment of new features and greater resilience during peak traffic periods, critical factors for a holiday airline that experiences extreme seasonal demand spikes.

Sources

• Amadeus Press Release

This article summarizes reporting by Reuters and includes data from official company announcements.

Volaris and Viva Aerobus Agree to Historic “Merger of Equals,” Facing Stiff Antitrust Headwinds

In a move set to reshape the Latin American aviation landscape, Mexico’s two largest low-cost carriers, Volaris and Viva Aerobus, have announced a definitive agreement to merge their holding companies. The transaction, described by the Airlines as a “merger of equals,” aims to consolidate operations under a single financial umbrella while maintaining separate consumer-facing brands. If approved, the combined entity would control approximately 70% of Mexico’s domestic air travel market.

According to reporting by Reuters and subsequent company statements released on December 19, 2025, the deal is structured as a 50-50 ownership split between the existing shareholders of both airlines. The agreement targets a closing date in 2026, though industry observers warn that the path to regulatory approval will be fraught with challenges given the massive market concentration the merger implies.

Structure of the Proposed Deal

The agreement outlines a strategy designed to capture economies of scale without alienating the loyal customer bases of either airline. Under the terms of the deal, Viva Aerobus shareholders will receive newly issued shares in the Volaris holding company. The resulting entity will retain listings on both the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE).

Despite the financial integration, the airlines plan to keep their operations distinct. According to the announcement, both carriers will retain their individual Air Operator Certificates (AOCs), commercial teams, and loyalty programs. This dual-brand strategy allows them to continue targeting their specific market segments while unifying backend logistics.

Leadership and Governance

The governance structure reflects the “merger of equals” philosophy. Roberto Alcántara, the current Chairman of Viva Aerobus, is slated to become the Chairman of the Board for the new group. Meanwhile, the current chief executives will maintain their operational roles:

“Under the new group structure, Viva and Volaris will continue to operate as independent airlines, allowing our passengers to choose their preferred brand.”

, Juan Carlos Zuazua, CEO of Viva Aerobus

Enrique Beltranena will continue to lead Volaris as CEO, while Juan Carlos Zuazua remains at the helm of Viva Aerobus.

Financial Context and Market Reaction

The merger comes at a time when both airlines are navigating significant operational headwinds, primarily driven by global supply chain issues. Both carriers operate all-Airbus fleets and have been heavily impacted by Pratt & Whitney GTF engine inspections, which have grounded portions of their capacity.

p>Despite these challenges, the financial rationale for the merger is rooted in resilience. By combining balance sheets, the airlines hope to weather industry shocks more effectively. Recent financial data highlights the scale of the proposed giant:

• Volaris (Q3 2025): Reported revenue of approximately $784 million and net income of roughly $6 million.
• Viva Aerobus (Q3 2025): Reported revenue of approximately $656 million and net income of roughly $30 million.

Investors reacted positively to the news. Following the announcement, Volaris shares surged between 16% and 20%, signaling market confidence that a consolidated industry could lead to better yield management and profitability.

“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry.”

, Enrique Beltranena, CEO of Volaris

Regulatory and Political Hurdles

While the financial logic appears sound to investors, the regulatory landscape presents a formidable barrier. The combined entity would hold a near-duopoly position alongside legacy carrier Aeromexico, controlling an estimated 71% of domestic traffic. This level of concentration far exceeds typical antitrust thresholds in Mexico.

Antitrust Scrutiny

The Federal Economic Competition Commission (COFECE) has historically taken an aggressive stance in the transport sector. In 2019, the regulator sanctioned Aeromexico for collusion, and more recently, it issued findings regarding a lack of effective competition in maritime transport. The merger also faces political uncertainty due to proposed reforms that could replace COFECE with a new National Antitrust Commission (CNA) under the Ministry of Economy, potentially introducing political criteria into the approval process.

AirPro News Analysis

The Efficiency Defense vs. Market Power

We believe the central battleground for this merger will be the “efficiency defense.” Volaris and Viva Aerobus will argue that consolidating backend operations,such as maintenance, fuel purchasing, and fleet negotiations with Airbus,will lower their cost per available seat mile (CASM). Theoretically, these savings could be passed on to consumers in the form of lower fares, fulfilling the “democratization of air travel” mandate both CEOs frequently cite.

However, regulators are likely to view this skepticism. Economic theory and historical data from the Mexican market suggest that when hub dominance exceeds certain thresholds, premiums on ticket prices rise regardless of operational efficiencies. With Aeromexico as the only other major competitor, the incentive to engage in price wars diminishes significantly. Furthermore, the US Department of Transportation (DOT) may view this consolidation as a complication in the ongoing dispute over slot allocations at Mexico City International Airport (AICM), potentially jeopardizing cross-border alliances.

Frequently Asked Questions

Will my Volaris or Viva Aerobus points be combined?
Currently, there are no plans to merge loyalty programs. Both airlines have stated they will maintain separate commercial teams and loyalty schemes.

When will the merger be finalized?
The deal is expected to close in 2026, subject to approval from shareholders and Mexican regulatory bodies.

Will ticket prices go up?
While the airlines argue that efficiency will keep fares low, analysts warn that reduced competition often leads to greater pricing power for airlines, which could result in higher fares on routes where the new group holds a dominant position.

Sources

• Reuters

This article is based on an official press release from CFM International.

Pegasus Airlines Finalizes Deal for Up to 300 CFM LEAP-1B Engines

Pegasus Airlines, a leading low-cost carrier based in Türkiye, has officially finalized a major agreement with CFM International to purchase up to 300 LEAP-1B engines. The deal, announced on December 18, 2025, is designed to power the airline’s future fleet of Boeing 737-10 aircraft. This agreement encompasses spare engines and a comprehensive long-term services contract, securing maintenance support for the carrier’s expanding operations.

The engine order follows a significant fleet expansion strategy initiated by Pegasus in December 2024, when the Airlines placed an order for up to 200 Boeing 737 MAX aircraft. According to the press release, deliveries for the new fleet are scheduled to commence in 2028. This move marks a pivotal moment for Pegasus as it diversifies its fleet composition and reinforces its sustainability targets through advanced propulsion technology.

Agreement Details and Scope

The contract between Pegasus Airlines and CFM International, a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines, covers the propulsion needs for the airline’s incoming Boeing 737-10s. The 737-10 is the largest variant of the MAX family, capable of seating up to 230 passengers. Because the Boeing 737 MAX family is exclusively powered by the LEAP-1B engine, this agreement was a necessary step to operationalize the airframes ordered the previous year.

While the official press release did not disclose the specific financial value of the transaction, industry data regarding comparable deals suggests a significant investment. Based on list prices observed in similar orders, such as Akasa Air’s 2024 procurement, a deal for 300 engines could be valued at approximately $5 billion, though airlines typically negotiate substantial discounts for large-volume orders.

Gaël Méheust, President and CEO of CFM International, highlighted the strategic importance of the partnership in a statement:

“We believe that the LEAP-powered 737 MAX 10 will be an invaluable asset in Pegasus’ continuing expansion, providing longer range, lower emissions, better fuel efficiency, and unequalled reliability.”

Sustainability and Technical Performance

A primary driver behind the selection of the LEAP-1B engine is Pegasus Airlines’ commitment to environmental sustainability. The carrier has set ambitious goals to reduce carbon emissions by 2030 and achieve net-zero emissions by 2050. According to CFM International, the LEAP-1B engine delivers a 15% to 20% reduction in fuel consumption and CO2 emissions compared to previous-generation engines, such as the CFM56.

In addition to fuel efficiency, the engines feature carbon fiber composite fan blades and ceramic matrix composites (CMCs). These materials are lighter and more heat-resistant than traditional metal components, contributing to improved durability. The engine also offers a significantly reduced noise footprint, a critical operational requirement for carriers flying into noise-sensitive European airports.

Güliz Öztürk, CEO of Pegasus Airlines, emphasized the long-standing relationship between the two companies:

“Since we launched operations in 1990, CFM engines have played a major role in helping Pegasus build a reliable, efficient fleet… The lower emissions and higher fuel efficiency of LEAP-1B engines will significantly contribute to both our 2030 CO2 reduction target and the 2050 net-zero CO2 industry emissions goal.”

Pegasus Airlines has a history of early adoption with CFM products; the airline was the first in the world to introduce the LEAP-1A engine variant into commercial service on Airbus aircraft in July 2016.

Strategic Fleet Implications

AirPro News Analysis

This order represents a notable strategic pivot for Pegasus Airlines. In recent years, the carrier appeared to be transitioning toward an all-Airbus fleet, heavily relying on the A320neo and A321neo families while phasing out older Boeing 737-800NGs. The decision to reintegrate Boeing aircraft via the 737-10 order in late 2024, and now finalizing the associated engine order in late 2025, signals a return to a dual-fleet strategy.

By operating both Airbus and Boeing narrowbodies, Pegasus mitigates supply chain risks, an issue that has plagued the aviation industry recently with delivery delays from both manufacturers. Furthermore, maintaining relationships with both major OEMs (Original Equipment Manufacturers) allows the airline to leverage competitive pricing. The selection of the 737-10 also provides capacity growth, as it is the largest narrowbody in the MAX lineup, suitable for high-density routes connecting Europe and the Middle East.

Frequently Asked Questions

When will the new engines enter service?
Deliveries of the Boeing 737-10 aircraft powered by these LEAP-1B engines are scheduled to begin in 2028.

How many engines are included in the deal?
The agreement covers up to 300 LEAP-1B engines, which includes engines for the aircraft on order as well as spares.

Is this a new relationship for Pegasus?
No. Pegasus has been a CFM customer since 1990 and was the global launch customer for the LEAP-1A engine in 2016.

Why did Pegasus choose the LEAP-1B?
The Boeing 737 MAX family is exclusively powered by the CFM LEAP-1B engine; no other engine option is available for this aircraft type.

Sources

• CFM International
• Boeing