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LATAM Airlines analyzes the future of its Airbus A321XLR and given the negative scenario that has been presented in the new Jorge Chavez for collection of ANCESTORS, The airline is rethinking its plans in Peru.
The current scenario of regional aviation, discussed intensely during the 82nd IATA Annual General Assembly on Rio de Janeiro, has raised a warning sign about the future of the hub Lima.
During the press conferences held within the framework of the event, Roberto Alvo, CEO de LATAM Airlines Group, warned about the critical impact of the current conditions of the Peruvian market, pointing out that the airline is reevaluating an investment greater than the $1.500 million dollars destined for the incorporation and positioning of its new aircraft Airbus A321XLR in the Peruvian capital.
The A321XLR may not go to Lima
The core of the conflict, highlighted by the executive during his statements, lies in the collection of the Unified Airport Use Fee (ANCESTORS) for passengers on international connection in the Jorge Chavez International Airport.
The implementation of an additional charge of $11,88 dollars per passenger alters the economic equation necessary to sustain a hub. Recent experience already shows the negative effects: The application of this type of charges has contributed to the cancellation of 8 international routes and has forced 11 new routes avoid Lima as a hub.
The opportunity cost for the country
The impact of losing this investment is not limited to the airline; It is a loss of opportunities for the economic development of Peru:
- It is estimated a reduction of 1,8 million seats (summing up domestic and international supply), which limits options for travelers and reduces network capillarity.
- Air disconnection results in a direct loss of approximately 85 millions of dollars in tourist spending that the country stops receiving.
- The Airbus A321XLR is a key asset for modern aviation, capable of opening long-range routes with greater efficiency. That Peru is not the point of deployment of this technology means that the country is losing the race against other markets in the region that do offer more predictable conditions..
What happens in Lima is the perfect example of the "brakes to growth" that THERE IT IS has identified in Latin America. As Alvo emphasized, The airline sector requires regulatory frameworks that encourage growth, not to block it. The investment of $1.500 millions of dollars is at stake, And with her, the potential of Peru to consolidate itself as an undisputed connectivity node in South America and compete with Bogota.
It is time for the future new authorities and the industry to find a path of coordination that will allow these distortions to be corrected before network decisions become final..
Since the AGM of THERE IT IS in Rio, It is clear that political decisions must be made with a long-term vision.; otherwise, the cost of current policies will be the loss of future competitiveness.
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