Argentina aviation: will the domestic landscape continue to evolve?
Before the COVID-19 pandemic, low cost airlines were working to make inroads in Argentina.
Its previous government, under former president Mauricio Macri, introduced more liberalised policies that paved the way for the establishment of low cost operators. His administration allowed airlines to expand domestically, and international operators to serve Argentina’s secondary market.
Aspiring LCCs also received a break when the government lifted the long-standing fare floor in Argentina during the summer of 2018.
The last two years seems somewhat like an eternity, but it appears the country’s budget operators have held their own as other changes have occurred in the marketplace during the crisis – most notably, the exit of Argentina’s second largest domestic operator, LATAM Airlines Argentina.
Now the question is how the competitive landscape in Argentina will evolve, and whether the government will encourage a level playing field.
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