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CAPA Americas Summit: Argentina’s infrastructure faces hurdles in handling a wave of new entrants

27-Apr-2017

Since the election of a new president in late 2015, Argentina has been cited as a rising star of Latin American aviation as the protectionist policies of the former regime began to loosen. A more aviation friendly government and Argentina’s untapped demand have drawn at least three startup airlines hoping to gain a foothold in a potentially burgeoning market.

The possible launch of three new airlines in Argentina will drastically change competitive dynamics for the country’s flag carrier Aerolineas Argentinas, which was shielded by government protection for many years and continues to bleed cash. Now that the landscape is changing, warnings for Aerolineas Argentinas to adapt to new realities are growing louder.

Although Argentina air travel growth prospects seemed to have turned a corner, challenges remain for airlines hoping to capitalise on a more liberalised market. One pressing issue the Argentina’s government faces is ensuring proper infrastructure is in place to support the new crop of airlines hoping to establish operations in the country.

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