The Gary/Chicago International Airport appears to have won its competition with Rockford, Ill., to host air service to Mexico, provided it can pull together funding to build a customs office to serve the international flights.

VivaAerobus, a Mexican version of Skybus, filed paperwork with the U.S. Department of Transportation today to begin offering direct flights daily from Monterrey, Mexico, to Gary, as well as service to Las Vegas and Austin, Texas.

The airport offered to waive most of the airline fees for two years to entice the carrier to locate in Gary. Curry said the offer narrowly beat out Rockford's package.

The airline's plans call for daily flights out of Gary on 737s or equivalent planes.

VivaAerobus is the first low-cost airline in Mexico and began operations in November 2006. It currently services 18 Mexican destinations, with its main hub in Monterrey.

The documents filed with the Department of Transportation state that the airline expects to begin offering service to the U.S. by the first week of July; however, that timeline would be delayed in Gary while the airport constructs a customs office to service international flights.

Airport Director Chris Curry said the airport has two locations in mind for the office, with a price tag of about $3.5 million for construction.

VivaAerobus told Curry it is not breaking off negotiations with the Rockford airport, keeping the heat on the airport to come up with the cash for the facility. Curry said he hopes to have the customs facility completed and service to Mexico started by late August or early September.

He said in the meantime, he will be hitting up regional sources for assistance and funding, including the Northwest Indiana Regional Development Authority, the Northwest Indiana Forum, and the cities of Gary and East Chicago.

In a report to the RDA last month, Curry told board members he was pursuing service to Mexico and would need several million dollars to house a customs office.

Board Chairman Leigh Morris, who has effective veto power over RDA decisions, said he would like to see the project included as an addendum to the airport's master plan.

RDA Executive Director Tim Sanders said he did not see that process being a significant hindrance to the project.

Sanders would not speculate on how the board might respond to a funding request.

"Show us what this airline looks like; show us what you're going to do. Show us that kind of thing and we'll decide," he said.

"I think this is great news," Sanders added. "...I hope this works out."

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