Mega-Projects, Mergers, and Defense: The Week in Aerospace

In this week’s aerospace and infrastructure news, Mexico’s proposed 2027 budget includes major spending cuts for flagship mega-projects while AIFA achieves profitability. Meanwhile, Volaris and Viva Aerobus cleared US and Colombian regulatory hurdles for their Grupo Más Vuelos merger, pending domestic approval. Additionally, Volkswagen is selling its Osnabrück plant to transition into air defense manufacturing. 

Wheels up–This is the week in Aerospace!

Mexico Slashes 2027 Mega-Project Budgets; AIFA Reaches Profit

President Claudia Sheinbaum’s administration has proposed significant budget adjustments for key infrastructure projects initiated under former President Andrés Manuel López, according to the 2027 Economic Package and Expenditure Budget Project (PPEF) submitted by the Ministry of Finance.

VW to Repurpose German Car Plant for Air Defense Production

Volkswagen AG has struck a preliminary agreement to sell its Osnabrück assembly plant to investment firm Aurelius Capital and the German state of Lower Saxony, pivoting the site toward air defense production in an industry-first overhaul to absorb structural overcapacity.

US FTC Clears Volaris-Viva Merger into Grupo Más Vuelos

Mexican ultra-low-cost carriers Volaris and Viva have cleared key international regulatory hurdles in their proposed merger to create Grupo Más Vuelos, following approvals from antitrust authorities in Colombia and the United States. However, the creation of what would become Mexico’s dominant airline holding company remains contingent on a pending antitrust review by Mexico’s National Antitrust Commission (CNA), expected before the end of 2026.