Argentina turmoil: Norwegian cedes LCC operations to JetSMART
Norwegian is trying to achieve sustained financial health, and a three aircraft operation halfway around the world seems like a logical cord to cut. Argentina’s economy is faltering, and the administration that instituted reforms for the establishment of LCCs in the country was voted out of office in Oct-2019.
If the incoming government preserves the reforms that paved the way for low cost operators to enter the market, two ultra low cost airlines will remain in Argentina – Flybondi and JetSMART Argentina. Perhaps a more rational number of low cost operators for the country.
For now, all airlines in Argentina are battling currency headwinds and general unease as the country’s economy continues to suffer. Even as inflation climbed to more than 50%, Argentina’s domestic passenger growth remained solid, but in Oct-2019 it slowed to flat growth year-on-year after double digit market increases for most of this year.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.