Avianca market share in Ecuador slips as domestic operation is reduced while LAN and TAME expand

Avianca has cut back significantly in Ecuador's domestic market as it focuses on domestic growth in Colombia and Peru. The group's Ecuadorean subsidiary, AeroGal, has redeployed capacity to the international market, which it sees as more profitable following the opening of a new airport at the capital Quito.

Rival airline group LATAM however has been expanding rapidly in the Ecuadorean domestic market. In 2Q2013, Ecuador was the fastest growing domestic market for LATAM but the slowest domestic market for Avianca.

Government-owned Ecuadorean carrier TAME also has been expanding, leading to a further drop in market share for Avianca. The Ecuadorean market also saw in 2Q2013 the entry of a fourth domestic carrier in Linea Aerea Cuencana.