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LAN, TAM and Avianca: dominating South American aviation, but room for intra-regional growth


Recent CAPA reports have examined the South American market and its main airlines. Several features emerged consistently: despite the economic downturn, the market has been growing and sometimes strongly, albeit from a low base; the continent is dominated by three major network brands, each with cross-border presence, LAN, TAM and Avianca; these airlines and their goals will characterise the continent's growth for the foreseeable future; their focus is primarily on domestic or intercontinental networks, while intra-South American services remain limited; and geographically, economically and in almost every other category, Brazil is the key player. [3167 words]

Unlock the following content in this report:


  • A region that needs aviation
  • LAN: the cross-border innovator
  • TAM: Brazil's powerful network airline
  • AVIANCA: now joined by TACA, dominant in Central and Northern South America
  • A region still developing, with limited wealth distribution
  • Why ability to pay is not a good price indicator; Colombia is most expensive
  • High fares invite new entry in Colombia
  • SWOT for 2010?
  • Links and alliances: oneworld on top, but Star twinkling
  • A healthy outlook for the major incumbents - and lots of opportunities

Graphs and data:

  • LAN Airlines– current fleet in service and on order
  • LAN Argentina current fleet
  • LAN Ecuador current fleet
  • TAM Linhas Aereas – current fleet in service and on order
  • Avianca – current fleet in service and on order
  • TACA International Airlines – current fleet in service and on order
  • Average GDP per capita: CIA World Factbook 2008. Average USD 10,500
  • Colombia total capacity share by carrier
  • Colombia: Domestic market share: December 2009
  • Shares of US market, by carrier
  • Avianca operating margin vs net margin: 2005 to 2009
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