The success of the reduction of boarding fees in Santiago de Chile

boarding fees in Santiago

In this new installment we will analyze the éreduction successón of boarding fees in Santiago de Chile like another example to follow in the regionón.

The aviationón continues to grow in Latin Americaérica at a good pace, but it is notá free of problems or obstacles that limit the development of the industry and we can highlight two important axes, the infrastructureás the Taxes and fees.

The case of Chile

Thanks to an interesting new report generated by HIGH, we can know informationón and stateídetailed statistics of the effects of reductionón of boarding fees at Arturo Merino Ben AirportíSantiago complexion, that leaves us a new example for the entire regionón.

One of the great challengesíWhat the aviation industry facesón and Américh Latin and Caribbean are the operating costsón of the aerosolsídenies, especially the fuel, which represents close to 30% of operating costs, and fees and taxes that increase operating costsóno and disincentivize, to some extent, the ability to increase the competitiveness of destinations and convert the regionón in a tur powerístic.

chile passenger growth
Chile is the paíI know that más grows in passengers.

It should be noted first of all, that boarding fees at Santiago Airport are managed by the Directorateón of Aviationón Civil de is país and not by a private entity or concessionaire, which has facilitated decision making.

in september 2018, The Chilean government decreedó the reductionón of the 20% in boarding fees for Sunday flightséstics and 13% in taxes for international flights. This measure demonstratedó results ráask with the opening of 6 new routes between September 2018 and June of 2019 and a cumulative growth of 17.5% in the traáI'm giftéstic, compared to the períall September 2017-June 2018.
This is equivalent to más de 6.100 additional passengers mobilizedádeparting daily at Chilean airports, positioning the país as one of the markets with the greatest growth doméstic of 2019 globally.
The demand in the industryéarea is highly sensitive to price variations, especially for the tourist passenger. The tourist has múmultiple destination options to choose from and the decisionón is largely based on the price variable. in july 2019, Chile made a second reductionón of rates, with a 10% additional in sun rateséstatic and 3.8% additional in international fees.
Chile is the clear example where a main airport that adjusts its rates, generates a positive effect on the entire industry.

Colombia, the other example

As we reviewed in a previous installment, Colombia isá taking important steps to increase your tráI'm theéreo and therefore, stimulate the economyíto the país generating más jobs and tourism.

For instance, Cartagena airport reduced by 2015 international shipping fee $92 USD a $38 USD. As a result of this measure, on 2015 the tráInternational passenger traffic in Cartagena grewó 30%. On 2016 I grew upó a 21%, on 2017 a 20%, on 2018 a 41% and so far 2019 a 11%. Cartagena airport duplicatesó his tráinternational trade in aíodo de 3 años and three new routes that previously did not exist were inauguratedíeven with flights to Amsterdam, Lima and Atlanta.

The industry toéarea stimulates the entire economyía, generating direct and indirect jobs, inversionón and tourism, Therefore the importance of these measures, where in Colombia tooén se analysis la implementationón of a differentiated VAT for tickets toéprisoners and fuel.

Leave a comment on this post!

8 comments on “The success of the reduction of boarding fees in Santiago de Chile”

  1. Let's be serious, the tickets did not go down at all. The airlines lied when they said that would lower the tickets. The tickets are the same, except that now the airlines pay less fees and less money for the state of fraud.

  2. Very good for Chile two weeks ago I passed through Santiago on a trip to Argentina and the new terminal was beautiful and they went down to 26 The airport tax continues to grow on both international and domestic flights.
    In contrast, Ecuador and Argentina with more expensive rates 116 U$ international 18u$ national Quito and Buenos Aires 70 international u$ but 2$ national .
    That is why national traffic grows fully in Argentina but international traffic also collapses obviously due to the Argentine economic crisis but it is also an opportunity for South American countries to wear it since it is super cheap but for that they should charge rates more in line with the Latin American reality.

      1. But adding all the ecodelta rates 50u$ and 10 migration and others 10 Arrival rate to the country by plane ends up being only 124U$ in Ecuador..
        Obviously, those who buy from abroad do not pay the ecodelta

  3. Fernando Salvatierra

    For God's sake, if our authorities do not understand this, there is no way to do it, Ecuador per se is expensive due to dollarization for the region, not to mention our rates. Thank you for your follow-up on airport cases, I follow them closely.