Adsorption and interaction of carbon monoxide (CO) and nitric oxide (NO) molecules on the surface of bare Al-Mo(110) system and on that obtained by its in situ oxidation have been studied in ultra-high vacuum (base pressure: ca. 10−8 Pa) by means of Auger and X-ray photoelectron spectroscopy (AES, XPS), low energy electron diffraction (LEED), reflection–absorption infrared and thermal desorption spectroscopy (RAIRS, TDS), and by the work function measurements. In order to achieve the Al-Mo(110) alloy the thin aluminum film of a few monolayers thick was in situ deposited onto the Mo(110) crystal and then annealed at 800 K. As a result of Al atoms diffusion into the Mo(110) subsurface region and the chemical reaction, the surface alloy of a hexagonal atomic symmetry corresponding to Al2Mo alloy is formed. The feature of thus formed surface alloy regarding molecular adsorption is that, unlike the bare Mo(110) and Al(111) substrates, on which both CO and NO dissociate, adsorption on the alloy surface is non-dissociative. Moreover, adsorption of carbon monoxide dramatically changes the state of pre-adsorbed NO molecules, displacing them to higher-coordinated adsorption sites and simultaneously tilting their molecular axis closer to the surface plane. After annealing of this coadsorbed system up to 320 K the (CO + NO → CO2 + N) reaction takes place resulting in carbon dioxide desorption into the gas phase and nitriding of the substrate. Such an enhancement of catalytic activity of Mo(110) upon alloying with Al is attributed to surface reconstruction resulting in appearance of new adsorption/reaction centers at the Al/Mo interface (steric effect), as well as to the Mo d-band filling upon alloying (electronic effect). Catalytic activity mounts further when the Al-Mo(110) is in situ oxidized. The obtained Al-Mo(110)-O ternary system is a prototype of a metal/oxide model catalysts featuring the metal oxides and the metal/oxide perimeter interfaces as a the most active reaction sites. As such, this type of low-cost metal alloy oxide models precious metal containing catalysts and can be viewed as a potential substitute to them.