TACA Peru

TACA continues expansion in Peru with A330s ahead of rebranding as Avianca

TACA Peru is planning further expansion with the introduction of widebody aircraft, two A330s, which will be used initially to increase capacity to Buenos Aires, Bogota and Miami. The upcoming expansion at the Avianca-TACA subsidiary follows rapid growth by the Peruvian carrier over the last two years in both the domestic and international markets. TACA Peru earlier this year became the second largest carrier in the country’s fast-growing domestic market, a position it has had for several years in Peru’s international market.

The new fleet of Lima-based A330s should help Avianca-TACA close the gap with rival LATAM, which is by far the largest airline group in Peru and the broader South American market. Avianca-TACA has been focusing on expanding its Lima hub, which is well positioned as a north-south hub for the fast-growing intra-Latin American market, as congestion at its main hub at Bogota increases. TACA Peru is one of several TACA carriers being rebranded Avianca in 1H2013 as Avianca-TACA finally moves to a single brand three years after it completed its merger.

Avianca-TACA and Copa put Star on top in Latin America but the victory will be short-lived

Six carriers from Latin American airline groups Avianca-TACA and Copa are formally entering the Star Alliance on 21-Jun-2012, marking the first of several key alliance movements in the fast-growing Latin American market. The six carriers – which include two from Colombia and one each from Costa Rica, El Salvador, Panama and Peru – will temporarily widen Star’s market-leading position in Latin America. But the gain will not offset the upcoming loss of Latin America’s largest airline TAM, which will be exiting Star within 24 months. Star would find itself as the third biggest alliance in the key Latin American market under the increasingly likely scenario of TAM joining new sister carrier LAN in oneworld and Brazil’s other major carrier, Gol, being affiliated with SkyTeam.

Star has enjoyed the status of Latin America’s largest alliance since TAM joined in May-2010. Star has since accounted for about 20% of total capacity in the Latin America and Caribbean region, compared to about 14% for oneworld and 10% for SkyTeam.

Key decisions loom in 2012 for Avianca-TACA as integration effort nears completion

The spotlight in Latin America this year will primarily be shone on LAN and TAM as the two airline groups complete their landmark merger and begin the integration process. But it is also a key year for Avianca-TACA, which completed their merger in early 2010 and has completed about 90% of its integration process.

The integration of Avianca and TACA will be wrapped up this year as the carrier formally joins the Star Alliance, completing two major milestones for the fast-expanding airline group. Several major decisions also loom for the group in 2012 related to its corporate structure, branding and fleet.

Structurally, a decision will likely be made by the end of this year on whether to bring Avianca Brazil into the publicly traded holding company Avianca-TACA. The Brazilian carrier is still owned by the Synergy Group, the holding company controlled by the Efromovich family which also owned Avianca prior to its merger with TACA (the Efromovich family now has a majority share in Avianca-TACA Holding). As a result, Avianca Brazil remains separate although it has a co-branding arrangement with Colombia-based Avianca.

Avianca-TACA enjoys profitable first year as merged entity

Avianca-TACA is confident of a successful debut on the Colombian stock exchange after a profitable first year as Latin America’s fourth largest airline group. Colombia-based Avianca and El Salvador-based TACA completed their historic merger in early 2010, creating the fourth largest airline group in Latin America after LAN, TAM and Gol.