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.
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