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Home / argentina / Country low cost year: 393-day flights, who is in the market and take advantage of offers – 02/27/2013

Country low cost year: 393-day flights, who is in the market and take advantage of offers – 02/27/2013



At the end of 2017 there were three Cabotage airlines Argentina: Aerolineas Argentinas-Austral, Latam and Andes Airlines. Now there are six, and This April will be seven; He joined in November 2017 Avianca Argentina; In January 2018, Flybondi; In October 2018, Norwegian Argentina; and will launch the first international flights coming next April Jetsmart – He told us, from El Palomar to Santiago from Chile.

With one Car at almost 393 day average flights in 2018, the Argentine air market continues to be an accelerated transformation. What is happening and what are the points of view?

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Actually, there is nothing new in the world: In our country, it happened 30 years ago in the United States and Europe, and 15 years ago around Oceania and South Asia. With the abolition of air markets and the increase in demand, in the late 80s, the low cost concept is spreading to the rest of the world.

Personalized luggage Low cost and traditional businesses differentiate rates with luggage or luggage (Flybondi) to fly.

Personalized luggage Low cost and traditional businesses differentiate rates with luggage or luggage (Flybondi) to fly.

The first boom was in Europe since the 80's. Irish creation RyanairIn 1985, it could be considered a milestone: it became an air market revolution the world's low-cost airlineWith more than 1,500 routes and a fleet with more than 300 airplanes. British easyjet followed, and soon sowed new names: Vueling, Buzz, Clickair, Wizz, Air Berlin, Transavia, Pegasus, and signatures.

Cabotage destinations


Infography: bugle

in In south america He was a pioneer in Volaris, working in Mexico in 2006, and one year later he went to the EasyFly in Colombia, and he continued to work in VivaColombia. The rapid growth of the market created the capital cities of Wingo, Colombia and Panamanian, and other companies appeared, such as Interjet Mexico, Sky in Chile or Azul and Gol Brazil. In fact, the Mexican Volaris Indik team, the owner of Jetsmart, will soon start flying in Argentina.

Avianca Argentina began in November 2017 with the ATR turboprop aircraft.

Avianca Argentina began in November 2017 with the ATR turboprop aircraft.

Is there everyone?

But when we return to our country, the question arises:There are so many companies and airliners? Is there enough market for everyone?

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"There is a place where the market will increasePositive for Argentines and tourists. There are many room for development, "says Matías Maciel, a Norwegian Norwegian spokeswoman, a Norwegian company established in the country and began flying in October last year." It is the first expansion in South America, and we have come up with a combination of factors in Argentina. On the one hand, the company's expansion process on a global level, and on the other, a new stage with the potential to boost the aviation sector in Argentina, "explained Maciel.

The Norwegian origin of Argentina, Norway, flew to Argentina in October 2018.

The Norwegian origin of Argentina, Norway, flew to Argentina in October 2018.

Likewise, Lucía Ginzo, Director of Corporate Communications at Flybondi, opened the "low cost" event on January 26, 2018, with a huge potential: "Argentina was one of the few non-low-cost carriers. The Cabotaje Market moved very few passengers in Latin America Compared with some countries, there is currently a great potential for development, not just the number of passengers, but also the connectivity. We will create a change in the market, because we absorb the full segment of those who do not fly or as they do in sporades"He said.

Flybond inaugurated a "low cost" cabotage on the first flight on January 26, 2018.

Flybond inaugurated a "low cost" cabotage on the first flight on January 26, 2018.

The announcement that Gonzalo Pérez Corral, CEO of Jetsmart, agrees with El Palomar that will fly next April: "Today, the market is a great opportunity for passengers and passengers," he says. In Argentina, the per capita air passenger percentage is much lower than in neighboring countries: half third in Brazil and Chile's third. "We believe it doubles in the market over the next five years and it is possible to develop new avenues, "he enthuses.

Likewise, as Aerolineas Argentinas and Latam companies are common, they will announce that the market grows. Máximo Amadeo, Commercial Director of Aerolíneas, "Demand for a lack of demand is still great, a great potential has not been developed, and the Company leaves a lot of growth, as well as more traders in the market. The airlines, with almost 70% market share, focuses on boosting growth. For this reason, the first of 2019 continues to generate a flight offer, more frequencies and more prices, depending on the degree to which it appears. "

Jetsmart is ready to fly in April, with Aribus A320 NEO.

Jetsmart is ready to fly in April, with Aribus A320 NEO.

In fact, Latam Argentina stated that "the opening of the aeronautics market responds to a worldwide trend in Latam Airlines' different countries. The Argentine market has enormous potential for growth and growth opportunitiesWe think it's helped and auspicious. "

Aerolíneas Argentinas Boeing 737 MAX. The company "will create the offer of flight, more frequencies and new prices, depending on the level of demand". (Aerolineas Argentinas)

Aerolíneas Argentinas Boeing 737 MAX. The company "will create the offer of flight, more frequencies and new prices, depending on the level of demand". (Aerolineas Argentinas)

So things, Everything seems to keep the market growing. Although the "pace" in the general economic context, the number of passengers traveling is increasing year by year, but a backdrop scenario may affect the affected ones, as well as the dynamics of the market with less companies or companies with less traffic offsets has it. In any market in the world, carriers have guaranteed – low cost or not – to survive"Pablo Diaz, a specialist journalist, is the creator of Diazpezen Blog and responsible for Ibero-American Airlinegeeks.com.

The website of the Argentina Airports 2000 website is the largest number of airlines with the most frequent Aeroparque.

The website of the Argentina Airports 2000 website is the largest number of airlines with the most frequent Aeroparque.

Image change

One of the few low cost items, according to the interviewees bugle (They consulted all the companies, and they responded not only to Andes and Avianca Argentina), "changing the" airport "was" changing the image, and in Argentina there was something expensive and exclusive. "They do not know whether or not many people are encouraged, along with low cost traveling for the first time. In fact, Jestmart has spent 2.5 million years of traveling in Chile, which is a growing market image, "says Pérez Corral, who did not pass so much" passing "between companies, but the global market growth in recent years a lot of traveling

Passengers are celebrated at a low cost. Last year there were new passengers, never people. / Martin Bonetto

Passengers are celebrated at a low cost. Last year there were new passengers, never people. / Martin Bonetto

And in Argentina there is a similar phenomenon From 2015 until today, the number of daily trips has increased significantly, and both Flybondi and Norway highlighted the number of passengers who "flew for the first time" in companies. The National Administration of the Civil Aviation (ANAC) data are eloquent: in 2015 there were 118,956 commercial flights in Argentina, both regular and non-scheduled, with an average of 325 days. In 2018, the number of flights increased by 20.5% to 143,327, when the average day reached almost 393. And despite a much larger number of flights, The number of aircraft occupation rates increased from 75% to 2015, 81% in 2018.

This trend continues this year: in January 2019 there were 13,262 flights, in the same month of 2016 against 11,645. Increase of 13.8% year-on-year comparison Conclusion: There are more people traveling in Argentina than by plane.

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The number of aircraft and passengers has increased, both from Buenos Aires and inland cities, In many countries multiplied airport operations. Between 2015 and 2019, for example, Córdoba's airport grew by 118% in passenger traffic; Mendoza, 103%; Iguazú, 192%; Rosario, 179%; Santiago del Estero, 264%; Catamarca, 229%; Mar del Plata 137%; Santa Rosa 155%; and Posadas, 123%. Aeroparque and Ezeiza had the lowest growth rates: 25% and 36%, respectively; Although Buenos Aires added El Palomar, more than 86,000 passengers traveled in January 2019.

Only in January 2019, he spent 86,000 passengers at the airport of El Palomar Airport. / Emmanuel Fernández

Only in January 2019, he spent 86,000 passengers at the airport of El Palomar Airport. / Emmanuel Fernández

However, at the end of January The "star" airport of the country was in Corrientes, the number of passengers almost doubled: It grew 87% compared to January 2018. Afterwards, Mendoza (37%), Santiago del Estero (34%), Iguazú (30%) and Posadas (27%).

Everything is a bit

Among the new companies that operate in Argentina, it is very interesting. Some operate in the Aeroparque-Norwegian and Avianca and others in El Palomar -Flybondi and Jetsmart. But also, They have different profile and separation strategiesIt is very important that those who are confused by travelers think that they are "the same".

Detective Detector: Norwegian wins on board plane.

Detective Detector: Norwegian wins on board plane.

"We operate the Aeroparque and we highlight the offer free Wi-Fi board, because they are different passenger segments and because we have paid great attention to the corporate sector, "explains Matías Maciel, and the Norwegian does not define it as a" low cost "company, but rather a" low rate ", excellent service.

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Jetsmart, on the other hand, already "ultra low cost"What does this mean? In that case, that The aircraft is already a "factory set" especially low cost. Thus, the "0 km" seats of the Airbus A320 NEO will not be operated by the company, since they are higher than usual, they do not have screens, USB columns or Wi-Fi, and they usually earn space. ovens or grocery stores, with two bathrooms in the back.

The new Jetsmart Airbus is a factory that has seats that do not have seating configuration.

The new Jetsmart Airbus is a factory that has seats that do not have seating configuration.

Lucía Ginzo defines Flybond as the "ultra low cost of Argentina", based on the opening and development of the new market that opens and develops this new market. A year later. "And he says that the key difference is efficiency:" To provide our rates, our processes are effective, profitable and successful, using the five basic principles of ultra low cost: single fleet (Boeing 737-800 NG), daily use of each aircraft, optimization of schedules, maximum seating for each aircraft (189 shots) and segmentation of products and services. Flybondien We're not using anythingEach traveler decides what they only want to pay and therefore defines travel experience. "

Beverages and meals will be charged separately on the Flybondi plane, a very fixed airline company. / Martin Bonetto

Beverages and meals will be charged separately on the Flybondi plane, a very fixed airline company. / Martin Bonetto

The "big ones" are not far away

The advent of new companies was relentlessly marketed by the commerce committee and the two main companies, Aerolineas Argentinas y Latam, but they did not see it outside, but They reacted quickly to the new reality, to make their conditions more flexible and to highlight competitive advantages: connectivity is much higher and more complete fleet and low cost conventional strategies. Basically, "single transfer" means that, in a way, it charges "extras" services, such as the distribution of luggage, food board or seating selection.

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"Airlines are not and will not be a low cost company, that's why it does not match up, "says Commercial Commercial Aviation Maxim Amadeo, which has launched a new" tailored tariff "scheme that offers more flexibility for customers." From this change in the way the sale is sold, Aerolíneas Argentinas only pay for services that customers respond to their needsand they offer more opportunities during the purchase, "explained Amadeo.

Aerolineas Argentinas set up a "regular tariff" scheme that provides passengers with more flexibility to pay for the services they need.

Aerolineas Argentinas set up a "regular tariff" scheme that provides passengers with more flexibility to pay for the services they need.

If you are looking for alternative options, Aerolíneas maintains it an indispensable difference: 70 fleet of aircraft – 15 times higher than the average cost 270 passengers and 30,000 passengers are transported daily. Its connectivity -127 internal routes and the truth of being The only company that reaches the province of each country, at least once a day– Its competitors also distinguish light.

And, interestingly, the resolution set in 2018 seemed to be a low cost custom made cancellation of the rate, as well as the benefits of conventional carriers. Airlines, for example, sold over 393,000 tickets a week, exceeded pre-estimates. Therefore, 2018 closed, number of passengers transported to national flights: 9.8 million.

In four categories of rates (promo, light, most, and highest), Latam allows each passenger to select their choice, the necessary services (paying only between 6 products or associated services)

In four categories of rates (promo, light, most, and highest), Latam allows each passenger to select their choice, the necessary services (paying only between 6 products or associated services)

They also accepted Latam Deletion of fee groups In fact, they emphasized that the measures were being taken to make the company's sales model in the country's other subsidiaries.

"We could offer to the traveler in four categories of rates (promo, light, plus and above). If you choose how you want to fly, paying only the services you need (Among 6 products or related services, include: passport reimbursement, change of data, accumulate mileage, 23-pound container container, seating selection, seating priority) and choose the rate that best suits your needs, "explained Latam.

Puerto Iguazú Airport is one of the most populated in the country, along with Córdoba, Mendoza and Bariloche. / Cecilia Profetico

Puerto Iguazú Airport is one of the most populated in the country, along with Córdoba, Mendoza and Bariloche. / Cecilia Profetico

In this context, for low-cost and airline companies, new rates must be taken into account when purchasing an air ticket:

  • 1. If they choose, they act secondary airports, which charge lower rates. In our case, it is El Palomar, which uses Flybondi and JetSmart. However, the Norwegian operates on Aeropark.
  • 2. In the case of low cost, tickets can be purchased via the web: Customer service offices and call centers are not as usual as usual.
  • 3. The basic rate It only includes a small storage luggage, and in many cases the laptop bag is not included. You have to pay the extra luggage payment and it is important to know when checking your luggage at check-in or at the airport when they are more expensive. If necessary, if you need to, you should buy the included fee.
  • 4. Not allowed choose a seatThey are assigned as randomized. If you want a place, you will have to pay a fee.
  • 5. They have more seats for each low cost airplane, so there is less room for legs (or seats are lighter, which take less space). In many cases (not all), seats are not quiet (or too few) to gain space.
  • 6. The tobacco food It is not included, but it can be purchased at the plane.
  • 7. There is no low cost in the entertainment package, with exceptions. The Norwegian, for example, offers free Wi-Fi.
  • 8. "Time is money", so overall, low-cost airplanes continue to be very timely. The rise and fall of the passenger is more common than in conventional companies.
  • 9. You must do it Checked in online and mobile phone printed or downloaded cards. Otherwise, most low-cost cases will have to be paid at the airport, and it's usually not cheap.
  • 10. Fares cheaper and promotional rates, in general, Do not allow changes or refunds. Or they allow, but with great costs. An important item is what you should consider especially in advance purchases.

Rate war

Deletion of the rate band The "Tariff war" began; In November, a Norwegian "black weekend" was launched, a 6% discount for six household purposes, and shortly afterwards, Flybondi launched the nest of the chair for more weight and rate per flight. Jetsmart was not behind, and placed 5,000 entries with the last floor of each period, using the "slice of fees with us", and sold 54,734 tickets in 24 hours.

Norwegian Air Argentina's first flight was on Astor's plane.

Norwegian Air Argentina's first flight was on Astor's plane.

How long will the "war" survive without victims? "I think it will continue, which changes the dynamics of the battle and its competitors: all companies do not have long-term war. The best cost structure will have margins to set prices and set the pace. The rest is going to make sense, or fly with the loss that will last, "predicts Pablo Díaz, an example of the Indian Jet Airways company, a traditional anti-collision tariff fighter entered into a war that sold 2 cents." He entered the race but Without a flexibility to reduce costs, today it is a serious risk of bankruptcy. "

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Argentinan, The first shots were not long: Andes Líneas Aéreas made routes and reduced frequencies and returned two leased Boeing planes, and Avianca Argentina announced the cancellation of the flight between Mendoza and Lima and the launch of the Preventive Crime Procedure before the Ministry of Production and Labor.

Andes Air Lines operates with the McDonell Douglas MD 83 plane.

Andes Air Lines operates with the McDonell Douglas MD 83 plane.

The state of the airline stands out at the end of 2018, with Airbus A320 announcing and returning to international flights, flying between Buenos Aires and San Pablo. According to the company, according to news portal, New Aviation, devaluation and fuel are praised. "The crisis procedure will help the state for six months. We want to share this effort," said the CEO of the company, Carlos Colunga, according to New Aviation.

What will come?

In this way things seem "Low cost era" began, and we will see changes in the air market and continue our experience in new and traditional companies.

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"In 2019 we continue our country and regional expansion plans, Which sets us as the first low-cost airline in Argentina, "says Lucía Ginzo from Flybond, and stated:" We started off with two brilliant news on the new airplane in 2019; His first year of operation and transporting his first million passengers. And in the first half We will work 7 new paths It connects Rosario, Córdoba, Salta, Tucumán, Iguazú, Neuquén, Trelew and Mendoza. We continue to work in Paraguay, it is working very well, and we will add it as a Brazilian destination. In addition, we prepared a very good route and frequency offer for winter vacations and we continued to evaluate the market of the aircraft for the second half of the year to make a new supplement for our fleet. "

Flybondi announced the launch of 7 new avenues in the first semester of the year, linking Rosario, Cordoba, Salta, Tucumán, Iguazú, Neuquén, Trelew and Mendoza.

Flybondi announced the launch of 7 new avenues in the first semester of the year, linking Rosario, Cordoba, Salta, Tucumán, Iguazú, Neuquén, Trelew and Mendoza.

Over the next five years, the commercial market will double and transport more than 10 million passengers. "Our country's commitment is a long term, and for this reason, we hope to create 2,000 direct jobs and 25,000 jobs," Ginzo says.

Norwegians, on the other hand, plans There are now six of them to increase the tracks and add new airplanes to reach the fleet between 8 and 12 years old. "We are currently completing the planned activities, we have been operating in January as the third operator of cabotage flights, adding more aircraft to the bodywork, increased frequencies and new routes we are looking for, such as Jujuy, Tucumán, San Juan and the other South, At the South American destinations, the airline begins to connect with the interior cities, with the arrival of Buenos Aires, "says Matías Maciel.

Norwegian Air Argentina wants to reach 8 to 12 airliners at the end of the year.

Norwegian Air Argentina wants to reach 8 to 12 airliners at the end of the year.

And Jetsmart? He still was not off, though He already plans to plan for twenty-five years from the start of three three to five aircraft, when he expects to have 12 operational routes. "We have the opportunity to develop new routes, we have not yet released, but we will soon make it." Financial support, with new aircraft, we are part of a very simple model: a very small cost and super transparent for our passengers, "says Gonzalo. Perez Corral reminds us that soon airport cabotage will be transformed into the airport and will take all flight regions to Ezeiza. Then, in the future, it will be convenient to approach the center of the city of El Palomar.

JestSmart will make 3 airplanes, but 5 will have plans for the end of 2019.

JestSmart will make 3 airplanes, but 5 will have plans for the end of 2019.

Aerolineas Argentinas has also expanded its annual projects. For example, set it Air bridge between Buenos Aires and Córdoba Focused on the business traveler's segment, which requires more flexibility. In this way, the person traveling with the price can change their flight before being obliged to pay without any other payment. "We are still working Develop a high value client segmentThere are 240,000 travelers who buy roughly $ 100,000 in revenue, "says the director of the company, and will continue to use the flag line Network analysis and optimization, routes and schedules, in order to be more competitive every day, and will continue 24-hour door-to-door delivery system setting, which expects to "triple the turnover of wineries" and will receive $ 24 million annually in the next three years.

Aerolineas Argentinas has 70 aircraft in the cabotage market and has a daily flight for all the provincial capitals.

Aerolineas Argentinas has 70 aircraft in the cabotage market and has a daily flight for all the provincial capitals.

Latam will keep one of the strongest forces International international connectivity, through the main connection centers: San Pablo (Brazil), Santiago de Chile and Lima (Peru). And will continue working in operational efficiency, punctuality, regularity and passenger service to maintain the historical quality standards; To promote connectivity and accessibility in the plane. "In terms of industry, we have the challenge, along with the rest of the company, to reduce costs," said the company.

One of Latam's greatest strengths is to provide the best international connectivity in the country

One of Latam's greatest strengths is to provide the best international connectivity in the country

Who is Argentina's lowest cost?

Jetsmart: Indigo Partners LLC is a Phoenix, Arizona private investment fund, the largest group of low-cost companies: Frontier Airlines (USA), Wizz Air (Hungary), Volaris (Mexico), and JetSmart (Chile and Argentina).

Norwegian Air Argentina: Created on January 25, 2017, it is a subsidiary of Norwegian Air Shuttle. Norwegian team, Norwegian Air International and Norwegian Air UK together.

Flybondi: It is an Argentine company and the main investors are Cartesian Capital Group LLC, Yamasa Co Limited. Former executives Michael Cawley (Ryanair) and Michael Powell (Wizz Air) are also shareholders.

* Avianca Argentina and Andes Lines Aereas are not defined as low cost lines.

Avianca is not defined at low cost. Go to an alternative destination (such as the Reconquista) or with a few frequencies, for example, Mar del Plata or Santa Fe./ Federico López Claro

Avianca is not defined at low cost. Go to an alternative destination (such as the Reconquista) or with a few frequencies, for example, Mar del Plata or Santa Fe./ Federico López Claro

What does it mean that the airline has a low cost?

Certainly, many people still do not know what the airline defines with the low cost. That is why we can do the following summary: Let's start by saying that the goal of a low cost airline is to operate minimizing its operating costs to be able to offer economic passages. Thus, low cost airlines tend to offer cheaper rates than traditional airlines in exchange for To eliminate, or to charge, additionally, many of the services that these companies do include.

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The low cost basic rate includes, in general, only a small hand baggage, and in many cases the carry bag is not included.

The low cost basic rate includes, in general, only a small hand baggage, and in many cases the carry bag is not included.

In principle, the term was used in the aviation industry to refer to companies with operating costs lower than those of the competition, but then its meaning varied, and now it defines any low-priced airline and limited services, in front of the of traditional companies. One of the keys of these airlines is to use the same model of aircraft throughout its fleet, with the aim of reducing maintenance costs.

More than a million people traveled for low cost modality in Argentina, according to official data. / Cecilia Profetico

More than a million people traveled for low cost modality in Argentina, according to official data. / Cecilia Profetico


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