Analysis of the Ecuadorian aeronautical market 2017

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Within the framework of the event Routes Americas 2018 which will take place in Quito in February, The agency has presented a detailed report on the Ecuadorian aeronautical market 2017 and its present. With this data, We analyze your prospects.

Recently, Routes published the report on the routes of the Americas with the most passengers and the Quito route – Guayaquil was placed in the TOP 20 more than 1 million six hundred thousand passengers in the period of 1 calendar year between october 2016 and october 2017.

In this new report, detailed market share statistics are presented, passengers transported and the largest routes that operated to and from Ecuador for the year 2017. I invite you to read and share this report that clearly details the situation of the Ecuadorian aeronautical market..

The Ecuadorian aeronautical market

The Ecuadorian air market is a great support for the local economy, providing work to more than 137.500 people between direct and indirect positions and generated a contribution of more than $2 billion dollars to GDP (Gross domestic product) during the 2016.

For the year 2027, the aeronautical business in Ecuador is expected to generate more than 196 thousand jobs and a contribution greater than $3 $1.3 billion to GDP, which would imply 2.5% of the total GDP of Ecuador.

The Ecuadorian market is destined to grow, thanks to infrastructure improvements and new airlines flying or interested in flying. In terms of ASK (Seats Available by Kilometers) grew up just a 3.3% from the 2010, but for the above, it is possible that this increase is accelerated by a greater tourist and business attraction.

Other measures, like the implementation of Open Skies policies, expect to generate even faster growth in the Ecuadorian airline industry.

Ecuador has 2 major international airports, Quito and Guayaquil. Each one with its points for and against the operation of the airlines. Between both, Quito has the advantage in terms of passengers transported with more than 5.4 million passengers and Guayaquil follows closely with 4.6 million passengers. Both add the 75% of the country's aeronautical market.

The main international destination from Ecuador is the United States with 2 million passengers transported and an average annual growth of 10% from the 2010. The following markets are Spain and Colombia.

Currently, the 56% of passengers traveling to or from Ecuador do so via a HUB (Panama, Lima, Bogota), so it is the appropriate opportunity to increase direct flights to the country.

Statistics of the Ecuadorian aeronautical market 2017

• In Ecuador more than 49.500 flights annually, of which the 68% corresponds to domestic and 32% to international.
• From Ecuador more than 6 million seven hundred and sixty thousand seats were offered, of which the 61% corresponds to the domestic market and the 39% to the international.
• At 2017 they offered 75.000 low cost seats, all international. Low cost airlines still do not operate in Ecuador on domestic flights, although LATAM Airlines Ecuador implemented a similar concept.

Statistics of the Ecuadorian domestic market

• During the 2017, fewer seats were offered than in the 2016, with a reduction of -13.1%, led this down mainly by Tame, which reduced its capacity by 27%.
• Year 2013 was the year with the highest number of seats offered in Ecuador with 6,834.913 million versus 4,157.394 in the year 2017.

• During the 2017 in Ecuador they took off 33.325 flights of 6 airlines (Iberia and KLM that flew or fly between Quito and Guayaquil are considered). Currently, 14 Ecuador airports receive regular domestic flights.

• Quito leads the domestic market (on the chart it says international) with the 43.2% Of capacity, followed by Guayaquil with the 33.3%, Galapagos (Baltra) with the 7.3% and the rest of the country's airports (Blanket and Tin) the 16.2%.
• The main 5 domestic routes of Ecuador by capacity are Quito – Guayaquil, Guayaquil – Baltra, Quito – Cuenca, Quito – Manta and Guayaquil – San Cristobal.

• In the year 2016 they were transported 415.034 fewer passengers compared to the 2015, which implies a reduction in -12,15%.
• The total number of passengers transported in the 2016 were 3.001.566 million passengers.
• Tame was the airline that presented the greatest decrease in passengers transported with the -16,73%.

Market share domestic airlines Ecuador (Market Share) by capacity 2017

The year 2017, it was not the best year for Tame. closed routes, decreased capacity and low frequencies, all this generated the flag carrier of Ecuador lose many points in its participation in the Ecuadorian aeronautical market:

• Tame continues to lead the market share in capacity offered with the 39.9%, followed by LATAM Ecuador with the 30.9% and closes in third place Avianca with the 25.7% of participation. The rest of the capacity is shared by KLM and Iberia that make/made the Quito triangulation – Guayaquil, although they do not have traffic rights.
• It should be noted that this market share analysis corresponds to the capacity of the airlines and not to the number of passengers transported..
• In the year 2016, Tame led the market share in passengers transported with the 49,51%, followed by LATAM Airlines Ecuador with the 32,62% and in third place Avianca-Ecuador with the 17,87% of participation.

Statistics of the Ecuadorian international market

• At 2017, the capacity offered on international flights was reduced by -4.7%, once again leading this reduction due to the closure of Tame routes to destinations such as Sao Paulo, Havana and Buenos Aires.
• The best year in history for seats offered on international routes was 2016, with more 2 million six hundred thousand seats.

• At 2017, 15,888 international flights took off to or from Ecuador.
• Currently, son 20 international airlines that operate regular flights to Ecuador. During the 2018 will be added 2 more with Spirit Airlines a Guayaquil and Condor a Quito.

• the top 5 international routes to and from Ecuador is led by Quito – Bogota with 519,792 thousand passengers passengers transported on this route, Guayaquil follows – Panama, Quito – Panama, Quito – Lima and Guayaquil – Bogota.
• The 5 largest international routes from Ecuador together add up to more than 2 million annual passengers transported.

• by capacity, international, the difference between Quito and Guayaquil is minimal. The Ecuadorian capital has the 50.3% of participation and the Pearl of the Pacific 49%. In third place is Esmeraldas with its international routes to Cali by Tame, with the 0.7% of participation.
• Son 3 Ecuadorian airports that capture regular international flights (Esmeraldas does not have international category, sino interfronterizo).

Market share international airlines Ecuador (Market Share) by capacity

During the 2017 there were few news regarding new international airlines in Ecuador or increased frequencies. At the end of 2016 Air Europa started flying to Guayaquil and in july 2017 for a short period voló Dynamic International Airways to Guayaquil. Other than that news, last year brought only short capacity increases by Copa Airlines and United Airlines. Usually, the international market showed a stabilization in operations, but the Tame effect with its route closures, overall hurt last year's final stats, although there is an improvement when compared to the 2016.

• Avianca is the main airline in capacity offered to and from Ecuador, with the 22.9% of participation. Copa Airlines follows with the 17.5%, American Airlines with the 11.5%, LATAM Airlines with the 10.6% and closes the Tame EP list with the 8.9% of participation.
• It should be noted that this market share analysis corresponds to the capacity of the airlines and not to the number of passengers transported..

Projections for the Ecuadorian aeronautical market

Year 2017 It was also a still complex year for the airlines that operate in Ecuador, both domestic and international. Although comparing with the 2016, there is a drop in several levels, these are mainly driven by the Tame effect in the market, but this does not mean that for all airlines it was a bad year. Usually, all showed some degree of growth in their income, transported passengers and others.

It was a good year for Ecuadorian aviation, the market stabilized and showed important signs of improvement, as are the passengers transported on the country's main domestic route, Quito to Guayaquil.

Even though he 2017 It was a year without major news, the 2018 It is shown as a much more attractive year and new airlines have already started their new routes to Ecuador and even, some that have gone, they would come back like VivaColombia O Cuban Aviation.

The domestic market begins to look more attractive. LATAM Ecuador and Avianca Ecuador plan strategies to increase more planes and national and international routes, thanks to an improvement in the market and a decline in the main domestic competition, Tame.

Definitely, the 2018 It will be a year full of good news for the Ecuadorian aeronautical market and that in this analysis, the cargo market was not taken into account.

Special thanks to Routes and OAG for the possibility of sharing such valuable information about the Ecuadorian air market.

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