Latin American and Caribbean Air Transport Association (ALTA) head Roberto Krieste said South American airports need more investment due to a continuing lack of adequate infrastructure in some areas, especially in Colombia, El Salvador and Brazil, according to a Travel Update report. On Brazil, Mr Krieste stated the lack of infrastructure is "causing huge damage to airlines and passengers as well, because there are no quotas to for air terminals to be developed further." On Bogota Eldorado International Airport's new terminal, Mr Krieste said, "unfortunately this new building has the same number of gates as the old, which you can attribute to poor planning which has to be resolved over time". Mr Krieste also noted the terminal building at El Salvador International Airport has been allowed to deteriorate, but "fortunately they have the funds to bring it back to international standards".
South American airports need more investment: ALTA head
You may also be interested in the following articles...
Copa Airlines tries to combat regional Latin American weakness as its margins sink
Weak economies in Latin America continue to drag down the results for Panama’s Copa Airlines, reflected in a 10.4ppt drop in its 2Q2015 operating margin to 9.1%. The airline’s results were worse than expected, driven by a particularly challenging Jun-2015.
Central American poster airlines Copa has been battling difficult dynamics in Venezuela and Brazil for roughly a year, and during 2Q2015 some challenges emerged in its Colombian markets. The airline is taking steps to adjust its network to lessen its exposure to those regions, but they still comprise a sizeable portion of Copa’s operations.
Copa does foresee some slight sequential improvement in its yield performance from 2Q2015 to 3Q2015, but third quarter yields are still expected to decline in the double digits.
The company has issued a second downward revision to its unit revenue and operating margin guidance for CY2015, and it seems some of the obstacles Copa has faced throughout the last year are lingering into 2016.
Brazilian airline Gol’s fortunes are inextricably tied to and mired in Brazil’s weakening conditions
Brazilian airline Gol continues to battle the deteriorating conditions in its home market driven by high inflation and record currency devaluation. Unlike most Latin America airlines, Gol has a much larger exposure to the domestic market and the demand fluctuations created by the macroeconomic pressure in Brazil.
Given the conditions in Brazil, Gol has revised its planned capacity targets downward in the domestic market for 2015, but at a lower rate than rival TAM, part of the LATAM Airlines Group. Gol reasons that its rival is catching up after Gol undertook a significant capacity reduction in late 2012. However, Gol cites some fleet flexibility if market conditions dictate a further capacity reduction.
Gol for the last couple of years has been working to strengthen its balance sheet as the BRL has devalued significantly against the USD. It recently brokered a financing deal with Delta, which upped its equity stake in Gol. But currency devaluation is pressuring Gol’s leverage position, diluting some of the balance sheet clean-up it has undertaken during one of the most challenging periods in Brazilian aviation.