U.S. Department of Transportation

The start-up carrier applied for a foreign air carrier permit and exemption authority in May.

Grants from the agency will fund runway rehabilitation, taxiway improvements, and other projects.

But the deal is still subject to customary closing conditions and approval by shareholders, who will vote early next month.

But Sean Duffy stressed that any deal would still be scrutinized for its potential impact on prices and industry competition.

The issue grounded thousands of aircraft just after Thanksgiving.

The carrier received an $11 million credit for improving its operations.

The concession comes after the USDOT canceled crossborder routes operated by Mexican carriers.

The USDOT dismissed the proposed rule as an unnecessary burden on the airline industry.

The carriers were given until Jan. 1 to unwind their partnership.

Viva Aerobus and Volaris said they will work to minimize disruptions for passengers.