Loading

Argentina's LCCs threatened by reversion to protectionism?

LCC growth in Argentina is continuing full steam ahead, with low cost operators representing approximately 31% of the country’s domestic flights for the seven months ending Jul-2019. 

But there is growing uncertainty about the future of low cost operators in Argentina as the odds of the country’s current president Mauricio Macri winning re-election are growing increasingly slim. Mr Macri’s government is responsible for liberalised policies that have created opportunities for low cost operators to establish themselves in Argentina.

After a Cristina Kirchner-backed candidate showed likely to win the next election, the Argentinian peso lost nearly 20% of its value in a week. Even as the political winds appear to be shifting within Argentina, the country’s start-up low cost airlines remain in growth mode, looking to seize on opportunities for traffic stimulation within the under-served country. Even as the political winds appear to be shifting within Argentina, the country’s start-up low cost airlines remain in growth mode, looking to seize on opportunities for traffic stimulation within the country. 

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,167 words.
Become a CAPA Member

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 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.