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- Torre Bouchard, Calle Bouchard 547 Piso 8
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- Buenos Aires Aeroparque Jorge Newbery Airport
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- Part of Aerolíneas Argentinas S.A.
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Air Europa Lineas Aereas
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Aerolineas Argentinas commenced operations in Dec-1950 and is the national airline of Argentina. The carrier, together with regional airline, Austral Lineas Aereas provides services throughout Argentina and to destinations across North and South America as well as Europe. Aerolineas operate from two hubs in Buenos Aires, with Aeroparque Jorge Newbery Airport used for domestic and regional international services and Ezeiza International used for long-haul services. Aerolineas and Austral comprise the Aerolíneas Argentinas SA group, which is majority-owned by the Argentine government. The carrier utilises a mixed fleet of narrow and wide-body Airbus and Boeing aircraft. In Aug-2012, Aerolineas Argentinas became a member of SkyTeam, the first South American member of the alliance.
Location of Aerolineas Argentinas main hub (Buenos Aires Aeroparque Jorge Newbery Airport)
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Azul believes Brazil-Buenos Aires service is unviable, partially driven by fifth freedom competition
As the major US airlines sought improved access to Latin America in the 1990s, Brazil and Argentina were persuaded - with some reluctance - to agree to open skies bilateral conditions. One consequence of this liberal environment has indirectly been to open up fifth freedom access between the two countries.
Brazil’s third largest airline Azul concludes now that it cannot profitably serve Buenos Aires, due in part at least to the participation of third country airlines. Buenos Aires is a market in high demand among its customers, but the abundant capacity, including from airlines operating fifth freedom services through Brazil to Argentina, puts this out of the question.
With Buenos Aires unviable for Azul in the short to medium term, it looks as if the airline will focus on more international expansion to the US until its Airbus A350s begin arriving in 2017.
Azul is also keen to strengthen its existing partnership with United and initiate a tie-up with JetBlue, which has a strong presence in Azul’s US markets. Those aspirations likely exclude any consideration by Azul of examining a potential partnership with Gulf airlines.
Air New Zealand is boldly moving forward with its longstanding aspiration to serve Latin America by announcing plans to launch service to Buenos Aires in 2015. The new Auckland-Buenos Aires route is made possible by a new partnership with Aerolineas Argentinas, which will provide connections within South America and local sales support.
For Air NZ, Buenos Aires fills the last major white spot in its network following the upcoming resumption of services to Singapore. Argentina has proven to be a challenging market for foreign carriers but for Air NZ it represents the best South American option with a risk level that is acceptable with the right partnerships.
For Aerolineas, codesharing with Air NZ provides an opportunity to add New Zealand and Australia back to its network. Aerolineas pulled out of the Southwest Pacific market in Apr-2014, leaving a void which Air NZ is eager to fill as it has the aircraft type and connections to succeed where Aerolineas failed.
Brazil’s Gol is continuing to expand into international markets as demand in the country’s domestic market remains tenuous, driven by uncertain economic conditions.
GOL Linhas Aéreas Inteligentes (Gols') international diversification began a little over a year ago as it opted to return to the US market through stop-over flights in Santo Domingo, and the airline continues evaluations of establishing an official hub at the airport. In the meantime Gol is adding new flights from rival Azul’s base at Campinas Viracopos to Miami in Jul-2014. Gol is expanding its one-stop offerings to the US ahead of ambitious plans by Azul to introduce new service to the US in 2015 with Airbus widebodies.
International expansion and other measures Gol has taken to improve its financial performance resulted in some progress during 1Q2014, but the airline still posted an overall loss, driven by currency fluctuations and financing expense.
A restructuring undertaken by Brazil’s second largest carrier Gol at the beginning of 2012, underpinned by domestic capacity reductions, bore some fruit in key financial and operational metrics during 2013. But profitability remains elusive for the once high-flying airline as it recorded its third consecutive annual loss in 2013.
Gol did shrink its losses in 2013 as rationalising supply with demand within Brazil helped the airline gain traction in its revenue and yield performance. But the major challenge that has plagued Gol for more than year – weakness of the BRL against the USD – shows no sign of abating in 2014. Gol also expects fuel costs to rise in 2014, further pressuring its financial results.
Even with the overhang of the all-too-familiar currency and fuel cost challenges, Gol is making network changes that reflect the still tenuous environment in Brazil. It is continuing to expand its international network with a planned resumption of service to Santiago and aims to introduce service to Miami from Campinas through Santo Domingo. The airline is also receiving a cash infusion from Air France-KLM, increasing its ties to the SkyTeam Alliance.
Growth in Chile’s domestic market slowed slightly in 2013 compared to previous years but was again in the double-digits at 14%. Traffic expansion on the country’s domestic routes remain among the fastest growing in Latin America as Chile’s economy has remained relatively stable during the last couple of years compared with more dramatic fluctuations within Mexico and Brazil.
The only legitimate challenger to LAN’s domineering position in Chile – Sky Airline – grew its positioning in the Chilean domestic market during 2013, and improved its load factor. But its loads remain well below the market average, which puts the privately-owned airline in a tough position to become a viable challenger for LAN.
The slowdown in Chile’s domestic growth in 2013 reflects the growing maturity of the market and the country’s relatively small domestic population of 18 million (versus 119 million in Mexico, 201 million in Brazil and 48 million in Colombia). Compared with other high-growth markets in Latin America, a larger number of Chile’s residents already travel by air, making it difficult to tap large numbers of first time flyers to stimulate the market.
Brazil’s Gol plans to begin codesharing with Aerolineas Argentinas in Mar-2014, finally moving to the implementation phase of a partnership which was initially forged in late 2011. The partnership will significantly improve the two carriers’ position between Argentina and Brazil, a large market now controlled by LAN and TAM parent LATAM.
For Gol, Aerolineas will become the low-cost carrier’s second two-way codeshare partner after Delta Air Lines. Gol has been carrying the code of several carriers for several years but until recently lacked the technology to sell on other airlines. It is now discussing potential two-way partnerships with several carriers, including TAP Portugal, as part of its new international strategy while looking at expanding its own network including to Africa.
For Aerolineas, the partnership is the carrier’s first in South America and results in significantly improved access to Latin America’s largest market. It supplements several codeshares Aerolineas has been working towards since joining SkyTeam in 2012.